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ndia¶s two largest FMCG companies-Hindustan Lever Ltd HLL and ITC Ltd-will soon slug it

out to gain supremacy in the Rs 650 crore branded atta sector in India. To start with, ITC

Foods is drawing up a three-pronged strategy while HLL is refocusing on its brand

µAnnapurna Atta¶ with relaunches and new launches.

Currently, ITC leads the pack with a 45% market share. On the company's strategy, Ravi

Naware, chief executive of ITC Foods said: ³We have just entered the premium atta segment

by launching Aashirwad Select, the first of its kind in India. We are streamlining our supply

chains to focus on product freshness. Also, we are extending our distribution channels with

an eye on special packaging and quality wheat procurement.´ It was in 2002 that ITC entered

the branded atta segment with the launch of µAashirwad Atta¶.   According to industry analysts, ITC has managed to establish its position n the branded atta

sector in the last two years. ³But now the going will be tough for ITC as HLL is refocusing on

its brand Annapurna. Two years ago, HLL began defocusing on its atta brands, but now the

scene is different. HLL is now quite bullish about its packaged atta brand,´ added analysts. Inthe branded atta sector, the major players include, Pillsbury, Annapurna and Aashirwad.

 As for HLL¶s renewed strategy, the company plans to strengthen its atta brand with new

product offerings this year. ³Annapurna is an integral part of HLL¶s foods portfolio and we are

committed to accelerating the growth momentum of this brand. Our aim is to position

 Annapurna as the Indian consumers first choice for nutritious meals,´ said a spokesperson

from HLL. According to the company spokesperson, Annapurna staple brand today reaches

to 25% of Indian households. ³Last year, we relaunched Annapurna with mproved product

and packaging. This coupled with focused investment in advertising and channel activation

has helped the brand to regain its growth momentum,´ he added.

Since the re-launch, the atta business, which is focused on the markets in South and West,

has registered growth in key modern chains, according to the company spokesperson. After 

a brief lull, competition is all set to hot up in the branded atta sector this year  C entered the branded Atta market with the launch of Aashirvaad Atta in Jaipur and

Chandigarh on 26th May 2002. The product is now available all over India. Aashirvaad atta

has further built on its leadership position among the National Branded Players with a market

share of 56%.

'Aashirvaad' promises the Indian housewife the joy of providing her family with the most

delightful home-made rotis, made from the finest quality atta. ITC uses the sourcing strength

of its e-Choupals to buy wheat directly from the farmers to deliver happiness to the Indian

consumer ±Khushiyaan Chun Chun ke (Happiness handpicked). µAashirvaad¶ is made from

finest quality wheat that ITC has the unique capability to source through its e-Choupal

network. Premium quality atta, made from 100% MP 'sharbati' wheat is also available

as Aashirvaad Select Atta. The wheat forAashirvaad Superior MP Wheat Atta comes

from the plush, fertile soil of Madhya Pradesh and then blended using the traditional 'chakki-

grinding' method to give the superior, discerning taste.

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