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Tata Soulfull, a subsidiary of the FMCG giant Tata Consumer Products, is set to introduce a new product called Oats Plus in Tamil Nadu this month. This strategic move follows its successful launch in Kerala approximately three months ago, according to a top company executive.
“We have launched oats plus which are plain oats, in Kerala. This gave entry us into the ₹250–300 crore category. In fact, even though it is early days, the responses have been good,” said Prashant Parameswaran, MD and CEO.
As to initiating the launch of the product in these two States, he said, “This is primarily because it is a large market where the consumption of oats is high.” Additionally, the whole point is not to ask consumers to replace what they are having but rather to ask them to incorporate millets into their diets, he added.
The product will see a phased expansion, and the company is exploring various other markets where the product can be introduced. The two markets are key and core to the category as they make significant consumption, noted Parameswaran. Furthermore, Soulfull’s 40-odd per cent of business comes from the southern States.
Prior to this, the company had launched masala oats around a year ago. India’s oat consumption is estimated to reach 50,000 tonnes in 2023, according to Indexmundi. While the global oats market is forecast to reach $10.8 billion by 2032, with a compound annual growth rate (CAGR) of 5.9 percent from 2022 to 2032.
More products
Additionally, it has ambitious plans to introduce six to eight more product categories, targeting both children and adults. Currently, the brand offers products across 5–6 categories, including breakfast cereals, kids snacking, muesli, granola, masala oats, plain oats, and wafers.
Commenting on Soulfull’s contribution to Tata Consumer Products’ revenue, the CEO told businessline, “Over the next two to three years, we can expect to see some sizable contribution to the overall performance.”
The brand is also actively working towards expanding capacities and has recently started a new plant in Indore with a capacity of around 2000 tonnes on an annualised basis. It also operates a plant in Bidadi with a capacity of around 3,000–4,000 tonnes of production.
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