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German food company Dr. Oetker India is looking to re-enter the muesli segment. The company, which acquired Fun Foods in 2008, currently sells a range of products which includes mayonnaise, sandwich spreads, peanut butter and Italian sauces.
The company has in the past tested the market with imported muesli products under brand Vitalis. But this time around, the company plans to make it in India.
Oliver Mirza, MD & CEO, Dr. Oetker India, said: “We plan to enter the muesli segment by the end of this year or early next year. We are working on developing the capabilities to make muesli products in India instead of importing them.”
The muesli segment is currently pegged at ₹150 crore, but has a number of Indian and international players vying for a share.
“We will focus on creating a new segment in the muesli space and not just launch another “me too” product,” he added.
Manufacturing facilityThe company recently opened its fourth manufacturing plant at Kaharani in Rajasthan. “We will gradually relocate all the manufacturing capacity to our newly launched plant at Rajasthan. This will act as the master hub in India,” he added.
With the launch of the new plant, the company now has a much larger manufacturing capacity, which it will use to introduce new products, besides look at exports. “We aim to make India among the top ten markets for Dr. Oetker globally by 2020. We want to grow our overall revenues from ₹160 crore to about ₹1,000 crore by 2020. We believe nearly ₹500 crore of this will come from the Fun Foods brand portfolio,” he added.
The balance revenues are expected to come from exports to South-East Asian countries and the launch of new sub-brands for muesli and frozen pizza.
Mayonnaise marketAs the market leader in the mayonnaise segment, the company is putting all its efforts to drive the growth of this segment, and make it a more popular condiment. Mirza said that in the past two years, the consumer base of mayonnaise in the country has grown to about 10-12 million from about 6 million in India.
“We aim to have nearly 50 per cent market share in the segment,” Mirza added.
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