With little over 80 per cent of the population earning less than $2 per day in India, sachet format — small packs — will be the right business model for the country in order to be successful, according to D Shivakumar, Chairman & CEO – India Region, PepsiCo India Holdings.

“Every industry takes a sachet thinking and sees what they can do with that format. While it started with shampoos and tea in a very simple way, it is one of the most powerful vehicles and business models now to grow the industry,” he said during the 5th edition of Cavinkare-MMA Chinnikrishnan Innovation Awards 2016.

Shivakumar, a veteran with a strong experience in sachet market, observed that about 83 per cent of people in India were earning ₹140 per day and sachet would be the biggest format due to its affordability, aspirational value and availability. “Entrepreneurs have to think of the business model very smartly in order to deliver on the sachet,” he added.

He also highlighted the contribution of Chinnikrishnan, who pioneered the sachet revolution in the country.

CK Ranganathan, Chairman & Managing Director of CavinKare, stated that his father Chinnikrishnan worked with the philosophy of “what the rich man can enjoy, the poor man should be able to afford.”

“A simple innovation has led to sachet market growing from ₹12 crore to about ₹6,000 crore now,” he added.

Three small companies – Basil Energetics, Sathyam Bio and Vortex Engineering – were awarded the Cavinkare-MMA Chinnikrishnan Innovation Awards 2016 for the innovation unleashed by those entrepreneurs. About 117 applications were received from across Tamil Nadu and Puducherry.

A five-member jury under the chairmanship of B Santhanam, President and Managing Director, Flat Glass – South Asia, Malaysia and Egypt, Saint-Gobain chose the three firms for this year’s awards.

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