Dr. Oetker has announced that it intends to increase sales in India from approximately Rs 160 crore in 2016 to Rs 1,000 crore by 2020. It aims to reach the target through network expansion and new product introductions that will include frozen pizza.
The Bielefeld, Germany-headquartered company, which entered the Indian market in earnest during 2008 after acquiring Delhi-based Fun Foods, is the nation’s top seller of mayonnaise, Italian-style sauces and sandwich spreads. It also produces cakes, dessert toppings and other products.
Oliver Mirza, managing director and chief operating officer of Dr. Oetker India, will pace the company’s frozen pizza campaign after carefully targeting markets that will be receptive to such value-added products. Upon realizing that consumers were not ready for frozen pizza after running trials in Mumbai a number of years ago, he decided to temporarily shelve major distribution plans while moving full speed ahead with the successful launch of muesli.
There is great potential for expansion in India’s packaged foods market, the value of which is forecast to grow from approximately $32 billion today to $50 billion by 2017, according to a survey by the Associated Chambers of Commerce & Industry (Assocham). Dr. Oetker plans to ride this rising tide as it further expands operations on the sub-continent.
Packaged foods sales have risen at an average annual rate of 32.5% from 2010-15. Rising disposable income among members of India’s middle class, coupled with a proliferation of young households in major metropolitan areas, augurs well for increased demand across categories of value-added packaged products ranging from frozen foods and beverages to dairy, snacks, ready-to-cook and ready-to-eat dishes and baked goods. Urban households account for 80% of these purchases.
About Dr. Oetker
Established in 1891, Dr Oetker is active in more than 50 countries today. It generated turnover of EUR 12 billion euro last year and is the market leader in Europe in branded frozen pizza, muesli and home baking categories.