KOCHI: Though represents only 2.75 per cent of the total population of the country, Kerala consumes 10 per cent of the total curry powder sales in India. In the `6,500-crore branded curry masala market in the country, the contribution of the state is `600 crore. Since the entry barriers in the segment is soft, local as well as major brands try their luck in the segment.
Growing at a rate of 15 per cent per year, the branded curry powder segment in the state has around 300 regional brands and 15 major brands. Curry powder exports worth `200 crore is also taking place from the state.
“In terms of consumption in the organised segment the potential for curry powder is huge in Kerala. There is vast scope for exports too. Apart from the big players, regional players do have a space in the market. The market is expected to be doubled in a span of three to four years,” said George Paul, MD, Synthite Group.
Experts point out that consumption of curry powder is high in the state as majority of the members in a family are working and the product is readily available.
It is estimated that around Rs 25 lakh is required to set up a small curry masala unit in the state now. But to build an export oriented factory `15-20 crore capital is needed. The other major markets for Kerala brands are South India and West Asia.
“The curry masala market in the state is expanding fast. The entry level barriers in the segment is lesser. Due to this many players are taking up this business. Though many companies have entered into the segment in the recent past majority of them failed to make a significant impact in the market. The companies in Kerala also look at the export market,” said Navas Meeran, Chairman, Eastern Group.
Kurian John, CMD, Melam said that it is easy to begin a curry powder company but it is difficult to sustain. “At present around 300 local brands are available in the segment in Kerala. But the fact is one or two in hundred actually sustains. The rest closed down and the investment will be lost,” he added.