Branded sugar yet to catch fancy of region

Vijay C Roy

Tribune News Service

Chandigarh, June 23

The brand-conscious populace of North India is yet to embrace branded sugar. At 3%, the penetration of branded sugar in North India is almost equal to the national average. However, it is mainly because of Delhi where the market share is more than 5%.

Branded sugar market is still at a nascent stage in India. However, it is growing at a CAGR of 8% as more people are opting it due to the fear that loose commodity may contain dust, foreign particles and may have been touched by multiple people. We see a lot of opportunity through modern trade and e-commerce channels — Angshu Mallick, deputy CEO, Adani Wilmar Ltd

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Manufacturers of branded sugar are optimistic that change in consumer preference for branded products amid the Covid pandemic will increase the demand.

According to the Indian Sugar Mills Association & NSSO data, household sugar consumption is 11-12 million tonnes per annum, of which only 31,500 tonnes or 3% is branded. In comparison, the share of branded products in edible oil segment is 50-55%.

According to industry, there are 2-3 players in every georaphical area. However, there is not a single brand which is available across the country. Sugar producers such as Shree Renuka Sugars Ltd, Triveni Engineering & Industries Ltd, Dhampur Sugar Mills Ltd, DCM Shriram Industries Ltd and Simbhaoli Sugars Ltd (Trust) are in the branded space.

Among the latest entrant is Adani Wilmar which is present in basic commodities such as wheat flour, rice, pulses, edible oil, soya nuggets and ready-to-cook items. The company is likely to introduce its sugar brand next month in the northern region.

“Branded sugar market is still at a nascent stage in India. However, it is growing at a CAGR of 8% as more people are opting it due to the fear that loose commodity may contain dust, foreign particles and may have been touched by multiple people. We see a lot of opportunity through modern trade and e-commerce channels,” said Angshu Mallick, Deputy CEO, Adani Wilmar.

According to Mallick, there are many regional players but still there is a potential for new players.