Delhi-based FMCG firm Pansari Group looks to replicate its success in South India

Pansari Group, a North India-based family-owned enterprise which boasts of an impressive 60-year legacy of collective expertise and unwavering customer faith, pins high hopes in making a big impact in South India. Over the years, the brand has become synonymous with uncompromisingly elevated standards in the culinary domain. Although it primarily works in the FMCG sector, the company just began functioning in the hospitality industry. With this in mind, we created the social media account Pansari Epicure. The bulk line of HORECA products from Pansari Group, which were previously only offered through wholesale channels, are the only ones shown on this social media profile, Shammi Agarwal, Director, Pansari Group told Bizz Buzz in an exclusive interview

Share with us your vision behind tapping the South India market?

In line with the ethos Sehat Aapki, Vaada Hamara (Your Health-Our Pledge) we have now embarked upon a foray into the southern region, a veritable melting pot of diverse and dynamic cultures that celebrate a cornucopia of cuisines.

Notably distinct from their northern counterparts, the denizens of southern India exhibit an abiding fondness for rice, which forms an integral component of a vast range of delectable dishes, including the inimitable biryani, idli, and dosa, among others. The ardour with which the locals embrace their culinary heritage is indeed commendable.

We are poised to tap into a vast, untapped market, and we have identified the Southern region as the ideal entry point. This will allow us to gain a deep insight into the intricacies and nuances of the local populace, which will further aid in strengthening our market potential. It is our fervent belief that this strategic move will help us unlock a plethora of untapped opportunities and steer us towards exponential growth, particularly given the region's burgeoning industry in recent years.

Brief us about the different trends in FMCG market region-wise in India? And how do you see the scope of your products in the Southern market?

The FMCG market in India has witnessed rapid growth in recent years with the Northern region being one of the biggest markets due to its high population density and major cities like Delhi, Lucknow and Jaipur. The Southern region is also a mature market dominated by established players. The variety of FMCG products available in the Southern market depends on various factors like product type, target market, level of competition and marketing strategies. However, the region's diverse and large population of over 230 million people provides a significant potential customer base for FMCG products, making it an attractive market for product innovation and customization. With a well-established distribution network and strong brand loyalty, the Southern market presents a lucrative opportunity for FMCG companies.

Which is your star product in the southern market and is your positioning different from Northern India?

Pansari, renowned for its premium quality culinary products, has received an enthusiastic response from the South Indian market, especially for our Pansari Basmati Rice. Starting with rice distribution in the Southern States of India was a strategic move due to the high demand for rice-based meals in the region, which is heavily influenced by crop cultivation. South India's climate is ideal for rice production with high precipitation and good soil water retention capacity, whereas wheat thrives in North India's temperate conditions with low rainfall. Understanding the market dynamics, we developed a unique strategy and established our presence in the South with the support of our exceptional team and meticulous planning.

How do you manage the supply chain and number of SKUs you have for Andhra Pradesh?

Entering the Southern India market posed challenges for us, with a diverse population, varied terrain, and infrastructure issues. However, we employed several strategies to manage our supply chains effectively. Our distribution team formed strong partnerships with Southern Indian suppliers, ensuring supply consistency through frequent contact, meetings and backup plans. Additionally, we leveraged advanced technology to streamline logistics, inventory and distribution, enhancing productivity and transparency. Successfully managing the FMCG supply chain in Southern India required a multi-pronged approach prioritizing strong alliances, technology, transportation efficiency, product quality and adaptability. By implementing these strategies, we gained control over our supply networks and successfully entered the growing Southern India market.

Being a Delhi based brand do you face any challenge in penetrating the local markets?

As a culinary brand, entering the Southern Indian market was a significant shift for us since we have been trusted for quality and authenticity in the North Indian market for a long time. However, we planned and executed everything flawlessly to cater to the unique demands of the Southern Indian market. So far, we haven't faced any significant issues and customers are enjoying our food products. We initially faced some linguistic challenges due to the diverse languages spoken in the region, but our excellent staff helped us overcome them. To cater to customers and language preferences, we are preparing to introduce specialized packaging in regional languages spoken in the South. This personal touch will enable us to attract more customers’ base and expand our business further.

How big is the FMCG product market in India?

The FMCG sector in India has experienced rapid growth in recent years making it one of the largest in the world. The industry encompasses a diverse range of products, including food and drinks, personal care items, household goods and packaged goods.

Household and personal care products account for 50 per cent of industry revenue with healthcare products contributing 31-32 per cent, and food and beverage making up the remaining 18-19 per cent. The industry is fiercely competitive with both domestic and international brands vying for market share. Factors driving the market include a growing middle class, rising disposable incomes and evolving consumer preferences. The industry's contributions to employment opportunities and GDP growth make it a crucial component of India's economy.

What are the new market trends and how it will be in future?

Another trend in the FMCG market is the rise of e-commerce, with more consumers shopping online for their daily needs. The convenience and accessibility of online shopping have led to the growth of e-commerce platforms, making it easier for FMCG companies to reach a wider customer base. The Covid-19 pandemic has further accelerated this trend as more people prefer to shop from the safety of their homes. FMCG companies are investing in digital technologies and e-commerce platforms to enhance their online presence and cater to this growing demand.

Personalization is also a growing trend in the FMCG industry with companies offering customized products to meet individual consumer needs and preferences. Advances in technology and data analytics have made it easier for companies to collect and analyze consumer data, enabling them to create personalized products and marketing campaigns.

The FMCG industry is constantly evolving with changing consumer demands and technological advancements shaping the market. Businesses that are agile and responsive to these changes will be best positioned to succeed in the dynamic FMCG market.