Reliance Eyes Biscuit Market With Launch Of Independence Brand

 

Reliance Consumer Products has entered India's highly competitive biscuit market under its Independence brand, setting up a fresh battle with established players such as Britannia, Parle, ITC, Patanjali, Anmol, Surya Foods, and Unibic. The Economic Times

Key highlights

• Huge market opportunity

  • India's biscuit market was estimated at ₹55,100 crore in FY24.
  • It is expected to reach around ₹90,300 crore by FY29, growing at roughly 10.4% CAGR. The Economic Times

• Highly competitive market

  • More than 90% of biscuit sales already come from branded products, meaning Reliance cannot rely on converting consumers from unbranded to branded biscuits.
  • The market is dominated by:
    • Britannia (~32%)
    • Parle (~29%)
    • ITC (~11%)
    • followed by several regional brands. The Economic Times

• Reliance's strategy

  • Leverage its nationwide retail network.
  • Use competitive pricing.
  • Build distribution rapidly through Reliance Retail.
  • Replicate, where possible, the success it achieved with Campa Cola. The Economic Times

• Why biscuits are different from soft drinks

  • Industry experts believe biscuits are harder to disrupt because many products already sell at ₹5 and ₹10 price points, leaving very little room for aggressive discounting without hurting profitability. Reuters

• Britannia's response

  • Britannia says it is watching Reliance closely but believes the biscuit category has stronger competitive barriers than the cola market.
  • The company expects its existing brands, manufacturing scale, and distribution network to remain significant advantages. The Economic Times

What will determine Reliance's success?

Reliance will need to succeed in more than just pricing. Winning market share will depend on:

• Consistent product quality
• Strong taste and repeat purchases
• Efficient manufacturing
• Wide retail availability
• Brand building and marketing
• Supply chain execution The Economic Times

Source  :ET