Latest news with #SureshNarayanan
Economic Times
01-08-2025
- Business
- Economic Times
Small brands teach new tricks to FMCG giants
India's fast-moving consumer goods (FMCG) sector, long dominated by legacy giants like Hindustan Unilever (HUL), Nestlé India, ITC and Tata Consumer Products, is undergoing a slow but definite seismic shift. The narrative that big players hold the upper hand in the market is slowly losing its grip, thanks to the recent rise of smaller, regional brands. These disruptors are not only reshaping the competitive landscape by capitalising on a combination of innovation, nimbleness and a deeper understanding of local preferences, they are also teaching a lesson to the big companies which are leanring to do better and different. ADVERTISEMENT "Startups and regional brands are good for the business. They do two things. One, they extend the variety for the consumer, and secondly, they give us additional inspiration for improving, making ourselves faster and smarter," Nestle India's outgoing managing director Suresh Narayanan told PTI in an interview earlier this week. According to Narayanan, today every brand has to be relevant to Gen Z and Gen Alpha consumers, who do not give much importance to the historical relevance of brands. "It goes by what is in it for me, so Maggi noodles have to be relevant to the Gen Z consumer and not simply relevant because my father consumes it. So I think both of these are truths that we have realised as a company and are constantly working on to improve and control the price of our brands so that we do not become irrelevant in the context of the consumption story," he said. As these smaller players continue to eat into the market share of traditional FMCG giants, it's clear that the future of India's FMCG market will be defined by adaptability and agility. "The game is definitely changing; it's changing across the world," Narayanan told ET in a recent interview. "In some parts of the world, big brands are no longer the marquees of quality and consumption. It's the local brands, the house brands." The rise of small FMCG brandsHundreds of regional and direct-to-consumer brands, ranging from noodles and tea to cosmetics and snacks, disrupting and taking share from large players. 1to3 noodles, Rungta tea, Balaji Wafers and Mario biscuits are among local brands disrupting the large of the primary reasons for the rise of small and regional FMCG brands is the changing nature of consumer preferences. In a country as vast and diverse as India, national brands, though well-established, often find it challenging to cater to the unique needs of different regions. Smaller brands, on the other hand, have the advantage of being highly localised. Their focus on specific geographical areas, local tastes and regional customs allows them to craft products that resonate deeply with consumers in those regions. ADVERTISEMENT "These small guys are not saying 'I want to sell one million tonnes'; they're saying 'I want to sell in six localities, in three pin codes'," Narayanan told ET. Legacy companies "really have to learn to think of smaller scale, more nimble, profitable operations, because the large-scale opportunities such as creating another Maggi noodles are going to be very difficult." They need to do multiple small things and fast, he said. Hyper-localisation allows smaller brands to quickly adapt to changing consumer needs and preferences, making them nimbler than the larger players who are often bogged down by their massive brands are also rising because they are able to undercut large FMCG companies on price while maintaining quality. These brands often have lower overhead costs due to their smaller operations and local supply chains, which allow them to offer products at more competitive prices. Moreover, by focusing on specific market segments, they can tweak their offerings and pricing strategies in real-time based on local demand patterns. ADVERTISEMENT Regional brands are also pioneering innovations that cater specifically to local tastes and dietary habits. For instance, in the snacks and beverages category, many have found immense success by tapping into regional preferences and offering products that are perceived as more authentic and closer to the local palate than the standardized products of large FMCG the rise of quick commerce -- platforms that offer rapid, last-mile delivery of goods -- has provided smaller brands with the ability to reach customers in remote and underserved areas, further challenging the established FMCG players who may struggle to match the speed and efficiency of these newer players. The penetration of e-commerce platforms like BigBasket, Blinkit and Amazon has allowed regional brands to establish a direct-to-consumer (D2C) model that bypasses the traditional distribution channels where big compoanies dominate, enabling them to deliver products quickly and affordably. ADVERTISEMENT Investors begin to chase small brandsAs the rise of small brands becomes noticable, even as big companies struggle with low demand, they have cuaght the eye of investors too. About a dozen small, regional consumer brands are either in the process of raising private equity funding or are being pursued by investors keen to acquire minority stakes, executives told ET a few weeks ago. These include Ahmedabad-based frozen food maker Iscon Balaji, skincare brand Dermabay, condiment and noodle brand Moi Soi, Raipur-based Zoff Spices, and soft drink maker Bindu Jeera, as per the ET report. The intense activity in small and mid-sized companies comes at a time when their larger rivals are trailing in finalising acquisitions and broader growth plans as they battle with sluggish demand in India's major mid-sized funding deals were finalised in recent weeks including snacking brand Khari Foods, desserts chain FES Café, and moss-based supplement maker CosMoss. Chandigarh-based Lahori Zeera and dairy and daily essential brand Country Delight too have raised more than Rs 200 crore each in funding. ADVERTISEMENT Executives attribute the surge in investor interest to a combination of factors. 'We thought premium was about affluent metros but it's very much visible in smaller towns. Also, quick commerce and e-commerce have reduced the advantage of legacy brands on distribution and availability,' Kannan Sitaram, co-founder and partner at Fireside Ventures, an early-stage fund, which has invested in Jaipur-based dairy firm Frubon, teen-care beauty brand Sammmm, and Chennai-based Sweet Karam Coffee, among others, told ET. 'It is this opportunity that investors including us are looking at — to build brands based on regional foundations.' Industry trackers said while the bigger consumer transactions have become rare with large companies grappling with slowing sales, especially in cities, it is the smaller ticket deals that have surged. Big brands are learning from small brands Small and rehgional brands have sure disrupted big brands but they are adapting to this disruption. Big FMCG companies are recognising the rising tide of regional brands, and many are seeking to collaborate rather than compete. Nestlé India, for example, has set up an accelerator program to work closely with startups and regional brands. Narayanan's comments reflect a broader industry shift towards collaboration and learning. By partnering with these smaller players, large companies not only gain valuable insights into local market dynamics but also identify opportunities for approach aligns with the growing trend of corporates leveraging startups for faster innovation cycles and new product development. In industries where the life cycle of new products is shrinking, large FMCG companies are increasingly turning to nimble startups to bring fresh ideas and technologies into their portfolio. Whether it's through partnerships, acquisitions or joint ventures, big brands are acknowledging that smaller, regional players are an essential part of their future said regional competition is good for the industry. "It keeps companies from getting complacent," he told ET. "Yes, they're playing the pricing game but what we can bring to the table is much wider." He said "companies have to increasingly work on keeping their brands relevant," and stressed the need for accelerating premiumisation. While keeping affordability intact, there are "enough opportunities for premiumisation in chocolates, milk and nutrition, coffee, pet foods," he said. To stay relevant in an increasingly more fragmented, dynamic and competitive environment, FMCG giants must embrace new technologies, adopt faster go-to-market strategies, and ensure that their products remain aligned with changing consumer tastes. This also means developing a more robust digital presence, leveraging e-commerce platforms, and engaging with consumers directly through D2C channels. Moreover, companies need to embrace regional diversity in their offerings. Customizing products to fit local preferences, collaborating with local innovators, and building brand loyalty through hyper-local marketing strategies are now essential to maintaining market share. (You can now subscribe to our Economic Times WhatsApp channel)
Time of India
01-08-2025
- Business
- Time of India
Small brands teach new tricks to FMCG giants
India's fast-moving consumer goods ( FMCG ) sector, long dominated by legacy giants like Hindustan Unilever ( HUL ), Nestlé India, ITC and Tata Consumer Products , is undergoing a slow but definite seismic shift. The narrative that big players hold the upper hand in the market is slowly losing its grip, thanks to the recent rise of smaller, regional brands. These disruptors are not only reshaping the competitive landscape by capitalising on a combination of innovation, nimbleness and a deeper understanding of local preferences, they are also teaching a lesson to the big companies which are leanring to do better and different. "Startups and regional brands are good for the business. They do two things. One, they extend the variety for the consumer, and secondly, they give us additional inspiration for improving, making ourselves faster and smarter," Nestle India's outgoing managing director Suresh Narayanan told PTI in an interview earlier this week. According to Narayanan, today every brand has to be relevant to Gen Z and Gen Alpha consumers, who do not give much importance to the historical relevance of brands. "It goes by what is in it for me, so Maggi noodles have to be relevant to the Gen Z consumer and not simply relevant because my father consumes it. So I think both of these are truths that we have realised as a company and are constantly working on to improve and control the price of our brands so that we do not become irrelevant in the context of the consumption story," he said. Explore courses from Top Institutes in Please select course: Select a Course Category Healthcare Data Science others Data Analytics CXO MBA Operations Management MCA Cybersecurity Artificial Intelligence healthcare Leadership Management Design Thinking Data Science Project Management Technology Digital Marketing Finance Public Policy PGDM Degree Product Management Others Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details As these smaller players continue to eat into the market share of traditional FMCG giants, it's clear that the future of India's FMCG market will be defined by adaptability and agility. "The game is definitely changing; it's changing across the world," Narayanan told ET in a recent interview. "In some parts of the world, big brands are no longer the marquees of quality and consumption. It's the local brands, the house brands." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like When the Camera Clicked at the Worst Possible Time Read More Undo The rise of small FMCG brands Hundreds of regional and direct-to-consumer brands, ranging from noodles and tea to cosmetics and snacks, disrupting and taking share from large players. 1to3 noodles, Rungta tea, Balaji Wafers and Mario biscuits are among local brands disrupting the large brands. Live Events One of the primary reasons for the rise of small and regional FMCG brands is the changing nature of consumer preferences. In a country as vast and diverse as India, national brands, though well-established, often find it challenging to cater to the unique needs of different regions. Smaller brands, on the other hand, have the advantage of being highly localised. Their focus on specific geographical areas, local tastes and regional customs allows them to craft products that resonate deeply with consumers in those regions. "These small guys are not saying 'I want to sell one million tonnes'; they're saying 'I want to sell in six localities, in three pin codes'," Narayanan told ET. Legacy companies "really have to learn to think of smaller scale, more nimble, profitable operations, because the large-scale opportunities such as creating another Maggi noodles are going to be very difficult." They need to do multiple small things and fast, he said. Hyper-localisation allows smaller brands to quickly adapt to changing consumer needs and preferences, making them nimbler than the larger players who are often bogged down by their massive scale. Small brands are also rising because they are able to undercut large FMCG companies on price while maintaining quality. These brands often have lower overhead costs due to their smaller operations and local supply chains, which allow them to offer products at more competitive prices. Moreover, by focusing on specific market segments, they can tweak their offerings and pricing strategies in real-time based on local demand patterns. Regional brands are also pioneering innovations that cater specifically to local tastes and dietary habits. For instance, in the snacks and beverages category, many have found immense success by tapping into regional preferences and offering products that are perceived as more authentic and closer to the local palate than the standardized products of large FMCG companies. Furthermore, the rise of quick commerce -- platforms that offer rapid, last-mile delivery of goods -- has provided smaller brands with the ability to reach customers in remote and underserved areas, further challenging the established FMCG players who may struggle to match the speed and efficiency of these newer players. The penetration of e-commerce platforms like BigBasket, Blinkit and Amazon has allowed regional brands to establish a direct-to-consumer (D2C) model that bypasses the traditional distribution channels where big compoanies dominate, enabling them to deliver products quickly and affordably. Investors begin to chase small brands As the rise of small brands becomes noticable, even as big companies struggle with low demand, they have cuaght the eye of investors too. About a dozen small, regional consumer brands are either in the process of raising private equity funding or are being pursued by investors keen to acquire minority stakes, executives told ET a few weeks ago. These include Ahmedabad-based frozen food maker Iscon Balaji, skincare brand Dermabay, condiment and noodle brand Moi Soi, Raipur-based Zoff Spices, and soft drink maker Bindu Jeera, as per the ET report. The intense activity in small and mid-sized companies comes at a time when their larger rivals are trailing in finalising acquisitions and broader growth plans as they battle with sluggish demand in India's major cities. Several mid-sized funding deals were finalised in recent weeks including snacking brand Khari Foods, desserts chain FES Café, and moss-based supplement maker CosMoss. Chandigarh-based Lahori Zeera and dairy and daily essential brand Country Delight too have raised more than Rs 200 crore each in funding. Executives attribute the surge in investor interest to a combination of factors. 'We thought premium was about affluent metros but it's very much visible in smaller towns. Also, quick commerce and e-commerce have reduced the advantage of legacy brands on distribution and availability,' Kannan Sitaram, co-founder and partner at Fireside Ventures, an early-stage fund, which has invested in Jaipur-based dairy firm Frubon, teen-care beauty brand Sammmm, and Chennai-based Sweet Karam Coffee, among others, told ET. 'It is this opportunity that investors including us are looking at — to build brands based on regional foundations.' Industry trackers said while the bigger consumer transactions have become rare with large companies grappling with slowing sales, especially in cities, it is the smaller ticket deals that have surged. Big brands are learning from small brands Small and rehgional brands have sure disrupted big brands but they are adapting to this disruption. Big FMCG companies are recognising the rising tide of regional brands, and many are seeking to collaborate rather than compete. Nestlé India, for example, has set up an accelerator program to work closely with startups and regional brands. Narayanan's comments reflect a broader industry shift towards collaboration and learning. By partnering with these smaller players, large companies not only gain valuable insights into local market dynamics but also identify opportunities for innovation. This approach aligns with the growing trend of corporates leveraging startups for faster innovation cycles and new product development. In industries where the life cycle of new products is shrinking, large FMCG companies are increasingly turning to nimble startups to bring fresh ideas and technologies into their portfolio. Whether it's through partnerships, acquisitions or joint ventures, big brands are acknowledging that smaller, regional players are an essential part of their future strategy. Narayanan said regional competition is good for the industry. "It keeps companies from getting complacent," he told ET. "Yes, they're playing the pricing game but what we can bring to the table is much wider." He said "companies have to increasingly work on keeping their brands relevant," and stressed the need for accelerating premiumisation. While keeping affordability intact, there are "enough opportunities for premiumisation in chocolates, milk and nutrition, coffee, pet foods," he said. To stay relevant in an increasingly more fragmented, dynamic and competitive environment, FMCG giants must embrace new technologies, adopt faster go-to-market strategies, and ensure that their products remain aligned with changing consumer tastes. This also means developing a more robust digital presence, leveraging e-commerce platforms, and engaging with consumers directly through D2C channels. Moreover, companies need to embrace regional diversity in their offerings. Customizing products to fit local preferences, collaborating with local innovators, and building brand loyalty through hyper-local marketing strategies are now essential to maintaining market share.
Time of India
01-08-2025
- Business
- Time of India
Startups, regional brands good for business: Nestle India CMD Suresh Narayanan
Startups and regional brands are not only good for providing variety to consumers but also give established players the push to improve their product offerings, Nestle India 's outgoing chairman & managing director Suresh Narayanan said. Stressing on the importance of startups and regional brands operating in small catchment areas, Narayanan said Nestle India is working with startups as part of its accelerator program, to identify their potential and see how to partner with them. "Startups and regional brands are good for the business. They do two things -one, they extend the variety for the consumer, and secondly, they give us additional inspiration for improving, making ourselves faster and smarter," Narayanan told PTI during an interview earlier this week. According to Narayanan, today every brand has to be relevant to Gen Z and Gen Alpha consumers, who do not give much importance to the historical relevance of brands. "It goes by what is in it for me, so Maggi noodles have to be relevant to the Gen Z consumer and not simply relevant because my father consumes it. So I think both of these are truths that we have realised as a company and are constantly working on to improve and control the price of our brands so that we do not become irrelevant in the context of the consumption story," he said. Over the last few quarters, big FMCG companies are facing stiff competition in some of the segments, such as food products, personal care etc, from the small regional players, which have become very aggressive with more vigour after softening of inflation. Narayanan, who is hanging up his boots on Thursday, said, "companies which are sustainable and contribute to communicating with the consumers digitally are becoming more favoured. We are accelerating our sustainable journey." According to Narayanan, being a part of a Swiss multinational, sustainability is part of the DNA of the company and an intrinsic part of the corporate journey. "Sustainability, usage of energy, air, Usage of water and usage of packaging have been part of discussion in the boardroom for a long time," he said. Nestle is also working on reducing packaging materials. It has not only reduced 8 to 10% of the packaging materials used but also made it more environmentally friendly. "Sustainability is something that the consumer looks for but the consumer necessarily pays for. It is something that, within the context of how the company chooses to conduct its business and for us, sustainability is an intrinsic part of our corporate journey," he said. Besides sustainability, Narayanan, in his decade-long tenure on the driving seat of Nestle India, also focused on diversity. In his tenure, diversity in the management team doubled to 20%, which across the organisation went up to around 25 per cent, he said. "With great pride, I say that we built a factory in Sanand in Gujarat, which is 45% women, so women in manufacturing," he said. Moreover, almost 30 to 40 differently-abled people are also working in Nestle factories. Moreover, sustainability initiatives have also been incorporated in procurement and sourcing. According to Narayanan, now its entire coffee, milk, and spices are sustainably sourced, and the company has been plastic neutral for the last four years. "So there has been overall progress on sustainability," said Narayanan. Plastic neutrality means balancing the amount of plastic usage. Under this, a company uses an equivalent amount of plastic that is collected and recycled from the environment. Nestle India, which has a revenue of over Rs 20,000 crore, is among the top ten markets of the Swiss food multinational.
Time of India
31-07-2025
- Business
- Time of India
After 26 years with Nestle India, Suresh Narayanan to retire as chairman and MD on July 31
After 26 years with Nestle India , Suresh Narayanan , the chairman and managing director of the packaged foods maker, will take his retirement starting July 31, 2025. Narayanan, who had taken over as Nestle India managing director in 2015, is credited with turning around the company's flagship instant noodles brand Maggi, after food safety authority FSSAI had called for a ban on the snack brand. Explore courses from Top Institutes in Please select course: Select a Course Category Cybersecurity MBA Leadership Degree MCA Operations Management Data Analytics Data Science Healthcare Project Management others Finance Management PGDM healthcare Digital Marketing Design Thinking Product Management Public Policy Artificial Intelligence Data Science Technology Others CXO Skills you'll gain: Duration: 10 Months MIT xPRO CERT-MIT xPRO PGC in Cybersecurity Starts on undefined Get Details He will be succeeded by former Amazon India country head Manish Tiwary effective August 1.
Economic Times
31-07-2025
- Business
- Economic Times
Startups, regional brands good for business, says Nestle India CMD Suresh Narayanan
Agencies Nestle India CMD Suresh Narayanan Startups and regional brands are not only good for providing variety to consumers but also give established players the push to improve their product offerings, Nestle India's outgoing Chairman & Managing Director Suresh Narayanan said. Stressing on the importance of startups and regional brands operating in small catchment areas, Narayanan said Nestle India is working with startups as part of its accelerator program, to identify their potential and see how to partner with them. "Startups and regional brands are good for the business. They do two things -one, they extend the variety for the consumer, and secondly, they give us additional inspiration for improving, making ourselves faster and smarter," Narayanan told PTI during an interview earlier this week. According to Narayanan, today every brand has to be relevant to Gen Z and Gen Alpha consumers, who do not give much importance to the historical relevance of brands. "It goes by what is in it for me, so Maggi noodles have to be relevant to the Gen Z consumer and not simply relevant because my father consumes it. So I think both of these are truths that we have realised as a company and are constantly working on to improve and control the price of our brands so that we do not become irrelevant in the context of the consumption story," he said. Over the last few quarters, big FMCG companies are facing stiff competition in some of the segments, such as food products, personal care etc, from the small regional players, which have become very aggressive with more vigour after softening of inflation. Narayanan, who is hanging up his boots on Thursday, said, "companies which are sustainable and contribute to communicating with the consumers digitally are becoming more favoured. We are accelerating our sustainable journey." According to Narayanan, being a part of a Swiss multinational, sustainability is part of the DNA of the company and an intrinsic part of the corporate journey. "Sustainability, usage of energy, air, Usage of water and usage of packaging have been part of discussion in the boardroom for a long time," he said. Nestle is also working on reducing packaging materials. It has not only reduced 8 to 10 per cent of the packaging materials used but also made it more environmentally friendly. "Sustainability is something that the consumer looks for but the consumer necessarily pays for. It is something that, within the context of how the company chooses to conduct its business and for us, sustainability is an intrinsic part of our corporate journey," he said. Besides sustainability, Narayanan, in his decade-long tenure on the driving seat of Nestle India, also focused on diversity. In his tenure, diversity in the management team doubled to 20 per cent, which across the organisation went up to around 25 per cent, he said. "With great pride, I say that we built a factory in Sanand in Gujarat, which is 45 per cent women, so women in manufacturing," he said. Moreover, almost 30 to 40 differently-abled people are also working in Nestle factories. Moreover, sustainability initiatives have also been incorporated in procurement and sourcing. According to Narayanan, now its entire coffee, milk, and spices are sustainably sourced, and the company has been plastic neutral for the last four years. "So there has been overall progress on sustainability," said Narayanan. Plastic neutrality means balancing the amount of plastic usage. Under this, a company uses an equivalent amount of plastic that is collected and recycled from the environment. Nestle India, which has a revenue of over Rs 20,000 crore, is among the top ten markets of the Swiss food multinational.
