India Gate parent Co firms FMCG presence; launches biryani masala, edible oil to follow

Indians’ love for biryani is well-known. As per a report by Swiggy, biryani was the most ordered dish on the food delivery platform in 2023, with 2.5 biryanis being ordered per second in 2023.

Though immensely popular, biryani is not an easy dish to prepare at home as it involves several steps, takes a long time to prepare and requires a bewildering variety of spices. There are some brands that have introduced biryani masalas and even biryani ‘kits’. KRBL Ltd, the parent company of India Gate brand of Basmati rice, recently forayed into the FMCG sector by launching a new range of biryani masalas. The company has launched three variants of biryani masalas – Hyderabadi Biryani Masala, Kolkata Biryani Masala, and Lucknowi Biryani Masala.

In conversation with Adgully, Kunal Sharma, Head of Marketing & Business Head - Modern Trade & Ecommerce, India Gate Foods (KRBL), delved into the fact of how the introduction of the Biriyani masalas is elevating the Biriyani experience for people, including the uniqueness of preparing, plating, and then devouring it with loved ones. The KRBL Biriyani Masalas are introduced after conducting various tasting sessions with the consumers along with the R&D team efforts, ensuring that the consumer orders the product again once they have tasted it. He also shared how KRBL is planning to invest in digital at a larger scale, executing regional marketing strategies, besides television being its primary marketing platform and reinforcing its core values of 'Shared Experiences' and 'Togetherness.' Excerpts -

KRBL has recently ventured into the FMCG sector with the launch of its Biryani Masala range. How will it help to elevate the Biryani experience for the Indian consumers?

Biryani in India is not just a dish, but an emotion. With this launch, our brand promise is of an elevated classic experience around India’s most loved dish. The experience lies not just in the amazing taste that the product delivers, but in the authenticity of the experience of cooking it, plating it, and then having it with people you hold close to your heart.

What is the USP of this new introduction and how is it different from its competitors in the market? What is the marketing mix?

Frankly, we see biryani takeaway orders as our competition. But if we were to compare ourselves with other similar products in the market, we have a few clear differentiators.

The biggest one is the taste that our product delivers, especially due to the seasoning that we have developed through numerous tasting sessions with consumers and the efforts of our R&D team. Once you taste it, we are sure that the consumer will re-order the product. Secondly, we have anchored our product on the promise of “experience” versus “convenience” and hence, we have stayed away from calling our product a kit. We have made our offering without rice as well to drive trials of the product at a lower price point. On the marketing mix, we plan to invest largely in digital and activations to build the promise of the Classic Experience.

What are the different variants of the KRBL Biriyani Masala? What is the distribution and marketing strategy for the same?

We have introduced three regional variants of India Gate Classic Biryani Masala – Hyderabadi, Lucknowi and Kolkata. This is a modern trade and e-commerce focussed launch, providing our consumers the opportunity to engage with the offering. After this initial launch period, we may expand into select general trade standalone modern trade outlets in top metros in the second phase.

What kind of traction have you seen or the product so far?

With India Gate’s leadership position in the Basmati Rice category and a strong association with Biryani, it was a logical extension of the India Gate Classic portfolio.

The product is garnering great traction and response across all markets, and is showing a lot of promise for scaling up. All the variants are receiving equally great responses. In a myriad of countries like India, certain variants are more popular in the North, while others are in the South.

What are the marketing activities and initiatives undertaken to promote this new category?

More than entering a new category, this launch is an attempt to bring in another dimension to the indulgent ‘Classic’ Experience, and hence, the choice of promotion planned will be influenced by this objective. Digital and activations will be the lead mediums to seed this product into people’s mind-space and eventually their homes.

What is the marketing strategy of KRBL? How has KRBL as a brand, evolved over the years?

KRBL is currently evolving from a pan-India one-size-fits-all approach to a region-specific objective-led approach. In India, staple consumption is highly diverse, with consumption patterns changing roughly every 100 km. Leveraging this dynamic, KRBL is strategically implementing regional marketing strategies and introducing unique product lines customised for specific audiences.

What is the overall market share of KRBL in the Basmati rice segment in India? What kind of growth did you witness in 2023?

KRBL leads the packaged basmati segment with 35.9% (+350 bps vs. STLY) in Traditional Trade (OND'23); and 40.9% (+100 bps vs. STLY) in Modern Trade (OND'23).

Revenue in the domestic market was Rs 1,143 crore in OND'23.

What are the growth projections of KRBL for 2024? What are its diversification and expansion plans?

KRBL Ltd has intensified its efforts to expand its business in India in recent quarters, resulting in a notable 14% year-on-year revenue growth. With Basmati Rice as our primary focus, we are bolstering our regional rice portfolio while also venturing into new product categories. Biryani Masalas represents the initial step in this diversification strategy, with many more opportunities on the horizon that we are poised to seize.

What are the market and ad spends of KRBL for 2024? What is the dominant medium for reaching out to your consumers?

Television serves as our primary marketing platform, as Basmati Rice, being a staple product, is predominantly distributed through traditional trade channels like Kirana stores. Our objective is to reach a broader audience, leveraging TV’s extensive reach to enhance market penetration and bolster brand equity. We lead the category and operate at an SOV of 70%+. Recognising the increasing digital penetration in India, we will also actively target our audience through digital channels to cultivate consideration and drive purchase intent. Our current digital spends are ~30% of our overall media spend.

What are the innovations that KRBL is trying to bring in this year? What is the brand positioning of KRBL and how has the brand identity of its India Gate Basmati rice brand evolved over the years?

Activating the value-added health portfolio and solidifying KRBL’s presence in the kitchen staples space, are the key areas where KRBL’s innovation work is focussed for this year.

Brand India Gate has always held ‘Togetherness’ and ‘Shared Experiences’ at its core. And the relationship of a ‘Caregiver’ that the brand shares with its consumers – from being a support to a partner, to a facilitator – has evolved over the years, but has stayed true to its core.

Which new products, brands, and categories has KRBL introduced in recent times and is planning to introduce in the future?

While we build our play in adjacencies like Biryani Masalas, there are also some newer categories. We are working on our foray into the healthy edible oils category in the next financial year.