NEW DELHI: Biscuits and snacks maker Parle Products on Monday announced its foray into the branded wheat flour (atta) market.
Being a staple in most households, the ‘Chakki Atta’ is being launched under its Parle G brand —the largest selling biscuit brand in India.
Branded wheat flour is one of the largest segments in the foods industry and the majority of the demand is currently being met by local mills or neighbourhood chakkis.
The segment, however, has benefited from the Covid-19 pandemic that saw an increasing demand for packaged food products over loose.
With this launch, the company will compete directly with rival ITC’s Aashirvaad flour brand which currently dominates the market.
“The urban markets lead in the consumption of packaged atta making it largely an urban phenomenon. But with the onset of the pandemic, the need for hygienically ground wheat flour and an assurance of trusted brand is driving consumers in the tier 2 and tier 3 cities to switch to branded atta. We aim to reach the remotest household in the country to provide hygienically ground atta and help consumers switch to healthy options,” said Mayank Shah, senior category head, Parle Products.
According to the company, the distribution of the new product has begun in the northern and western regions and is available in three sizes — 2 kg, 5 kg and 10 kg — with competitive pricing.
Way back in 2002, when ITC launched Aashirvaad atta, it was a latecomer to the branded market. HUL, with Annapurna and General Mills, with Pilsbury had beaten it by a couple of years.
Soon, however, within four years says the company, the brand had edged past its peers to corner the maximum market share. Retail sales of Aashirvaad brand, in fact, crossed Rs 6,000 crore in FY20.
Branded wheat flour market is growing rapidly
India’s packaged atta market is pegged at around Rs 20,000 crore, or 60 lakh tonnes annually. More than 50 per cent of the market is controlled by branded companies, including ITC, Adani and Patanjali.