The Hindu Business Line : Sniffing for more

WHEN her dogs began falling ill often, Kala Krishna was worried sick. Taking care of them proved to be a difficult task as they suffered frequent bouts of indigestion, and other gastric disorders.

As Krishna's dogs were used for breeding and in dog shows, it was important they be in peak health. A quick inspection of the dogs' diet revealed this - the rice and vegetables they were being fed were just not adequate and wholesome. Being carnivores, they needed something more to chew on.

That's when Krishna, a breeder for almost 15 years now, decided to put her dogs on a non-vegetarian diet - something she had been laying off for long as she was a strict vegetarian. However, the switchover had immediate effect ... her dogs became stronger and healthier. But, the best was yet to come.

When she bought a rather huge German shepherd from Australia, Krishna ordered readymade commercial dog food from Singapore. And the results were even more remarkable. Vouches Krishna, wiser from the experience: "Readymade commercial food helps dogs gain better coat; they become stronger. The quality of milk the mother gives her pups, too, improves."

According to Varindra Sewak, Business Manager, Purina Petcare India, which retails the Dog Chow brand, "Research shows dogs need six times more protein and calcium than human beings. Therefore, what we eat is not appropriate for dogs; they need specially prepared food."

Dog food available in India is generally a dry chicken-based formulation and is claimed to be a balanced diet containing all nutrients. (Globally too, wet formulations are being phased out, as they call for immediate use on opening.)

While they weren't many brands in the Indian market about five years ago, post-2000, when the country came under the WTO regime, several companies entered India. Today, there is an influx of brands such as Pedigree, Pro Pac and Royal Canin, but dog owners haven't quite lapped it up despite the rise in pet ownership.

Pet ownership is definitely rising in India, at 10 per cent per annum, thanks to changing lifestyles. Says Bijou Lulla, CEO, Alliances International, dealers for the US-based Pro Pac, "With more youngsters in the workspace with disposable income, they are increasingly owning pets. More women in the BPO and IT sectors are marrying late and there is a greater propensity among them to own pets for companionship. Also, with the one-child norm these days, more families are looking to have pets."

However, more pets does not automatically mean more consumption of pet food. Although veterinarians pitch strongly for commercial food, the switch to it has been a slow process. "The consumer still carries strong beliefs about home food being the best option. But they are slowly coming around to understanding the benefits of prepared food," says Vikas Mittal, Head, Corporate Affairs, Effem India Pvt Ltd, Hyderabad-based fully owned subsidiary of the US-based Mars Inc which retails Pedigree.

Agrees Lulla: "Although awareness is rising, the usage is low. Using pet food means cutting off home food completely. But people still stick to a combination diet, and some give pet food as a snack, citing costs as reason. But there are many indirect costs in home food like fuel, frequent vet visits ... whereas it costs Rs 30-35 a day if one were to spend only on commercial food. In the long run, people are better off with commercial food."

Dog nutrition in the country is a virgin market and includes treats and snacks such as biscuits, chews and bones, apart from dog food, which accounts for 70 per cent of the market estimated at 8,000 tonnes.

Ever since the market was liberalised, the readymade food sector has been growing rapidly at 30-40 per cent annually. A large faction of this growth has been fuelled by Pedigree, which has a giant sniff of the market at about 70 per cent, mainly due to the cost advantage it enjoys.

Locally manufactured economy brands such as Pedigree and Nutripet cost Rs 70-100 per kg while imported premium brands such as Purina are priced Rs 100 and above. Super premium brands such as Royal Canin (imported from France and also owned by Mars Inc) and Pro Pac are priced at about Rs 200 per kg. Pro Pac claims a market share of 35-40 per cent in the high-end category and says it's growing at a "ballpark rate of 50 per cent, which is more than the industry average."

The food is prepared keeping in mind specific requirements based on age, weight and activity. "The needs of each dog are different. For example, working dogs in the special protection force require more protein and calcium than dogs living in houses," says Purina's Sewak.

For instance, Purina's Dog Chow comes in three varieties tailor-made for puppies, adult and active dogs. Pedigree too comes in three variants - Active, Puppy and Adult.

Royal Canin, distributed by Ruskin Pet Products, sells the Mini, Medium and Giant varieties. Mini is for small-sized dogs such as the Dachshund, Spitz, Pomeranian and the Pug, while Medium caters to the German Shepherd, Labrador, Boxer, Doberman and the Golden Retriever. The Giant category is for bigger dogs such as Great Danes, Rottweilers and Mastiffs.

"We have also introduced a special diet for two breeds - the Labrador and the German Shepherd as these are the common breeds here. We will soon introduce food for Great Danes as well," says K. Venkat, who owns Ruskin Pet. Royal Canin also has veterinary diet for renal, cardiac and intestinal problems and obesity.

Unlike in Europe and the US, where there is a sizeable cat population, in India the animal nutrition segment is dominated by dog food. "Cats are still considered unlucky in the country and ownership is very low," says Mittal of Effem, which sells the Whiskas brand of cat food in the tuna-sardine, salmon-carrots, prawns-carrots and chicken-milk combinations. Dog food accounts for 80 per cent of Effem's sales, a trend observed in other brands too.

Despite the availability of an assorted range and a fairly steady growth, the dog food market is largely scattered and untapped, and has marketers grappling with distribution challenges and using below-the-line strategies. Most brands, except Pedigree, are sold through specialty channels such as vet clinics, pet shops and breeders, only on the advice of veterinarians.

"The retail penetration is low and the market is concentrated in urban areas. Pet shops are small in size and often our distributors have to double up as sales agents," says Lulla of Alliances International, which sells Pro Pac in 16 `markets.' Delhi, Chennai and Mumbai are its biggest markets. Royal Canin is available in 40 cities (including metros and sub-metros) at 400 points of sale.

Pedigree, however, boasts a stronger retail presence and is available in supermarkets, grocery stores, pet shops, vet clinics and chemists in 50 cities. It is also the most visible face on popular media, almost synonymous with the category. Apart from television and print campaigns, it uses hoardings and retail merchandising for publicity.

But other brands have not taken this route due to the high costs involved; they also feel the Indian market is still not mature enough, and hence most of the promotion is targeted at a niche audience - pet magazines such as Indian Kennel Gazette, Dogs and Pups, and Creature Companion, apart from participation in dogs shows and workshops.

Looking ahead, marketers are optimistic, although they see several challenges. Educating pet owners on the benefits of commercial food seems to be their top priority, apart from introducing more variants. "We forecast a growth of 35 per cent year on year for the next three years," says Venkat of Ruskin. Says Lulla: "We must change our positioning, strengthen our distribution structure ... get into supermarkets. We need more trained sales force ... even our channel partners are not fully aware of the benefits of commercial food, vets too are unable to communicate effectively."

For now, the players have barely bit into the pet nutrition market in the country ... but the bark promises to get louder in the years to come.