Concurs Narendra Poddar, DGM Operations, Foodland, Mumbai, "We stock
branded snacks where margins are lower, but these have top-of-the-mind
recall, and are very fast moving. We also have local brands which do
very well." Fabmart lists Haldiram, Lay's and MTR as the top
three brands, in that order. Confirms Haiko's Susil Dungarwal,
"Lay's
leads with almost 65 per cent share in our store, followed by Garden and
Haldiram. Margins from regional players go up to 25 per cent on
some products." Credit periods range from 30 to 45 days for regional and
local players, while national players, largely Pepsi, have cash on
delivery of 15 days credit.
Realisations are also good for the
companies, which have targeted the more profitable wafers and chips
segments rather than the traditional Indian ones like bhujia or moong
dal. Rationalising for different pack sizes, per gram, the wafers
segment yields 25 paise on an average, while traditional Indian snacks
yield 16 paise.
Products like cheese balls can command up to 40 paise
per gram.
The higher costs of production, marketing and logistics
for the national brands is offset by the lower margins they give
retailers and the greater price per gram they command due to branding,
differentiation and scale of operations. Not surprisingly, Pepsi has
found its Frito Lay operations are making money faster than they hoped.To know more visit our site http://allindiayellowpage.com.