New Entree in ready-to-eat shows fight for your taste buds will last beyond the pandemic - Times Now

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Key Highlights

• Major dairy player Heritage Food today stepped into the ready-to-eat arena for the first time

• RedSeer had projected the RTE catagory at nearly Rs 3,000 cr last year

• Rs 11,000 cr PLI scheme for packaged food underway; segment attracting big players & bigger capital

Even as India's metros gradually emerge out of lockdowns of varying degree, the eating habits of the pandemic are not getting undone. Top food companies are still noticing an insatiable demand for ready-to-eat products.

Major dairy player Heritage Food today stepped into the ready-to-eat arena for the first time. The company said, "The RTE segment is one of the fastest growing, and is expected to grow at a CAGR of 20%." A segment that is increasingly getting crowded with players like ITC, Tata Consumer, MTR, Haldiram, Bikanervala, Vadilal, Venky's and Godrej Tyson - to name a few. Infact, at the Tata Consumer AGM chairman N Chandra said the company has plans for a Rs 400 cr annual capex, and a big e-commerce ramp up. It is also pressing ahead with 'end-to-end digitisation' of the supply chain. Tatas have re-engineered their online presence, and F&B is riding on a lot of synergies with in the group.

Ready-to-eat is a segment that's even more instant than ready-to-cook products. And with the pandemic disrupting our timelines and mobility, the demand has never been as intense.

As if instant was not appealing enough, there is the added pull of nutrition thrown into the mix. And easily consumable, microwavable packaging has made these items an impulse buy. Top consulting firm RedSeer projects the RTE catagory at nearly Rs 3,000 cr. Last year, the segment was sizzling at a growth rate of 35%.

What we may be witnessing is our eating portions getting smaller, and finding their way on to our desks. Everything else is just the economics to capture this trend. RTE segment now no longer targets snack or breakfast category but the entire range of meals, both vegetarian and non-vegetarian. Lockdowns since last year have totally disrupted the dining out behaviour, and that too has been a driving force.

As startups flush with new money enter this space, we are now seeing Digitisation of the backend supply chain, and the customer front too. A number of savvy brands are happy to piggyback on major etailer apps like Amazon and Flipkart. Govt too has sensed which way the wind is blowing. The Rs 11,000 Cr PLI scheme is currently assessing bids to back RTE/RTC products. This holds the promise of an irresistable package of growth as well as jobs.

This trend may or may not have longer term health implications, they will unfold only with time. But for now, ready-to-eat is trying hard to shake up a legacy of belief that what comes out of a packet is not the healtiest of the meals.

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New Entree in ready-to-eat shows fight for your taste buds will last beyond the pandemic - Times Now
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