Reliance Industries Chairman, Mukesh Ambani, has decided to foray into India’s massive Rs 42,694.9 crore snack industry, posing a major challenge to market leaders like Haldiram’s, Britannia, and PepsiCo.
India’s snack market is set to turn into a battleground as Mukesh Ambani, Asia’s richest man, has decided to foray into the massive Rs 42,694.9 crore industry, posing a major challenge to market leaders like Haldiram’s, Britannia, and PepsiCo. Mukesh Ambani, who recently turned India’s soft-drink market upside down, taking on global giants Coca Cola and Pepsi with his Campa Cola brand, is now eyeing the snacks market, which is dominated by major players like Haldiram’s and Britannia.
How Mukesh Ambani plans to challenge industry giants?
According to reports citing sources within Reliance Industries, Mukesh Ambani is likely to employ the same pricing tactics which he successfully used to make Reliance Jio the undisputed market leader in India’s telecom sector, also gave Coca-Cola and Pepsi a run for their money in the soft-drink market.
Reliance Consumer Products, which is reportedly bringing potato chips, namkeen (savory snacks), and biscuits, will price these food items much lower than the competitors, in order to reports.
Additionally, Ambani’s Reliance is offering a 20 percent margin to retailers, compared to the usual 8-15 percent offered by other brands. The company is also giving an 8 percent margin, and a 2 percent performance-based incentive to distributors.
Reliance to launch ‘Independence’ biscuits
As per reports, Reliance Consumer Products, a subsidiary of Reliance Industries, is planning to launch biscuits under the proposed name ‘Independence’. The Mukesh Ambani-led conglomerate will also launch namkeens and other snacks in the market under the brand names Alan Bugles and Snactac, they said.
Reliance entry into India’s rapidly growing snack market poses a major challenge for industry leaders such as Haldiram’s, PepsiCo, and Britannia, as the Mukesh Ambani-led company is likely to employ its hugely successful competitive pricing tactics to dethrone them and conquer the market.
Earlier this year, Mukesh Ambani stormed the soft-drink market with his Campa Cola brand, and used the same business strategy he used with the launch of Reliance Jio — by starting a price war. Ambani’s tactics have created a stir in the soft-drink industry, as he slashed the prices of Campa Cola soft drinks, essentially starting a price war in the space, which will inadvertently force its competitors to do the same, which is great news for consumers.