The ₹26,000-crore Ruchi Soya Industries has decided to extend its second brand Mahakosh to soya meals. Hitherto into edible oils only, Mahakosh will target the mass segment.

Nutrela – the company’s flagship – will focus on the premium end of the spectrum (in both edible oils and soya chunks).

Increasing competition in the ₹350-crore branded soya chunk market and ensuring presence across different price points are said to be reasons for this two-pronged strategy.

“Our strategy will be to push Nutrela as a premium brand, while Mahakosh will be for mass and value products,” Satendra Aggarwal, Chief Operating Officer, Ruchi Soya Industries, told BusinessLine . He was in the city for the launch of Mahakosh’s soya chunks.

Increasing competition Mahakosh (soya meal) will not just take on competition coming in from local players, but also be placed at par with other major brands like Adani Wilmar’s Fortune.

For example, a 200-gm pack of Nutrela is priced at around ₹50 against ₹38-40 (branded offerings). Comparatively, Mahakosh will be positioned lower at ₹35 for a same 200 gm pack.

According to sources, competition has hit Nutrela’s growth. Earlier, it was witnessing a year-on-year growth of 15-20 per cent. Currently, it has come down to 5-10 per cent. “Yes, we have lost some growth momentum in Nutrela, courtesy competition,” Aggarwal admitted.

Mahakosh, he pointed out, is targeting a 10 per cent market share this fiscal and 20-25 per cent within the next three years (in the soya meals market). It will be made in the company’s Indore (Madhya Pradesh) and Haldia (West Bengal) units.

Meanwhile, Aggarwal maintained Nutrela’s offering bouquet will be further extended to perhaps include high-end edible oils and a foray into breakfast cereals.

“Within a year’s time you may see two more extensions each in Nutrela and Mahakosh,” he said without detailing out the different products that are being explored.

Related Topics
comment COMMENT NOW