REGIONAL BRANDS STORM FMCG FORTRESS

AGILE AND PROACTIVE REGIONAL BRANDS ARE GIVING LARGE FMCG COMPANIES STIFF COMPETITION.

- AJITA SHASHIDHAR

YOGESH KUMAR SAHU, a third-generation entrepreneur from Ranchi, left his family's rice business in 2021 to set up his own venture. Though Sahu started atta (wheat), he vowed to sell only branded products. Apart from market leader ITC's Aashirvaad Atta, which had over 50% market share, the market had scores of local brands. However, these brands had fractured distribution and, more importantly, questionable quality. Sahu invested in technology, product standardisation and state-of-the-art packaging. "My brand, Panchakanya, is on a par with Aashirvaad. We blend the best grains. Consumers have endorsed us," says Sahu, MD, Baba Food Processing.

The gamechanger was Reliance Retail's decision to give the brand prominent space at stores in Jharkhand. While a 10-kg pack of Aashirvaad costs ₹400 at Reliance stores, Panchakanya is priced at ₹299. Sahu has also appointed sales teams in Jharkhand and adjoining Odisha and West Bengal to service traditional trade; most regional brands sell through wholesalers. "Unlike national brands, which don't provide cash credit to trade, we offer incentives such as 2% cash discount if retailer pays us within two days and 1% discount if he pays within eight days," says Sahu. Panchakanya Atta is selling 1,500 tonnes per month in Jharkhand within two years of entering the market while Aashirvaad is at 5,000 tonnes.

PROACTIVE AND FOCUSED 

• Regional brands are investing in technology, processes and supply chain, giving national peers stiff competition.

• Their willingness to invest in tech sales enablement, sales force automation is way higher than threefour years ago.

• They are focusing on offering quality products which are not necessarily cheaper than what national peers sell.

• Most are not in a hurry to go national just yet.