Global pet food majors sniff strong growth in India
Global pet food majors are sniffing strong growth in the category in India thanks to the growing adoption of furry companions during the pandemic and the shift from homemade to packaged foods. Mars Petcare is increasing its production capacity in India to meet growing demand and is also expanding its portfolio here.
According to Kalpesh Parmar, Managing Director, Mars Wrigley, India, the company is investing Rs 500 crore in India to increase its pet food capacity, with a 65KT capacity expansion at its Hyderabad plant. “It has already started and will be done over the next 18 months,” he said.
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parmar said Activity area“Over the past 24 months of the pandemic, we have seen a huge increase in pet adoption in the country and this has been reflected in business growth over the past two years.
The investments will strengthen the local manufacturing capacity of the company’s main brands, Pedigree and Whiskas. At the same time, the company made brands such as Sheba and Temptations available through imports.
The pet food business is currently pegged at around Rs 4,000 crore and is expected to double in the next 4-5 years. It is estimated that there are currently 30 million pets in India and pet adoption is increasing by more than 11% year-on-year.
“We believe that consumers moving from home food for their pets to packaged pet food will be a key growth driver for this business,” Parmar said.
Customization to taste
“As the category matures, there will also be personalized demand, depending on the breed. It will no longer be just one or two SKUs. Many innovations will be introduced to our brands, including Royal Canin,” he added.
Recently, Nestlé India has also identified the pet food sector as a key growth driver. Nestlé SA’s wholly-owned subsidiary, Purina Petcare India, is in the process of being merged with Nestlé India as of October 1. Purina Petcare India was established as a separate entity in 2018.
“Expanding to Tier 1 cities and e-commerce plays a big role in expanding the pet care business in this country. And there is opportunity to unlock the business potential in smaller cities, using the weight and infrastructure of Nestlé India,” the company’s management said in an earnings call last month.
September 03, 2022