Pratap Snacks: Arduous Journey from Back Alleys to National Markets1

Mr. Amit Kumat, Chief Executive Officer of Prataap Snacks Ltd., a INR. 900 crore turnover
company based out of Indore was recapitulating the success and was concerned about the future.
The company which sells its products in 1.2 million corners of 28 states in India has been a great
success in the small shops (C & D category) of Tier – 2 & 3 cities. Now that the brand has got
wider recognition in the back-alley shops, it wants to get into bigger shops (A & B category) and
Tier 1 cities attracting sophisticated middle, upper-middle and higher income groups of customers
with its product offerings.

Mr. Kumat was concerned about the following issues, which are coming in the way of Yellow
Diamond (Brand of Prataap Snacks) from becoming a nationally recognized brand. First issue is
with retailers who feel that the brand is 'local' and their customers won't prefer Yellow Diamond
(YD) over brands such as Lays / Doritos / Halidram's etc. Second issue is with distributors who
supply to A & B outlets of Tier – 1, 2 & 3 cities. YD has strong distribution network with local-
mass level distributors who are not recognized by A & B outlets. Roping in new exclusive
distributors who do business in large volumes for this purpose is very important to gain inroads
into the new markets. Third issue is with respect to using existing distributors to supply to A & B
outlets which demand goods on credit. The small distributors don’t have the financial wherewithal
to offer credit for the goods supplied thereby limiting themselves to outlets paying cash. Fourth
issue is the entry into sweet snacks category with “yum pie”, which melts in hot weather. Selling
other products in the category like “yum cake” and “cookie cake” is also a challenge due to
presence of bigger brands in the market. Most crucial issue is building brand awareness and
presence among distributors, retailers and consumers. Knowing consumer eating habits, producing
suitable products and margins to be offered to distributors and retailers is important.

CHIPS INDUSTRY: INTRODUCTION

Local manufacturers due to their roots in Indian culture come up with snack flavours which are
opted by Indian consumers. They are also able to reach final consumers through various
distribution options, difficult for a multi-national company to adopt. Chips market in India which
is INR. 7000 - 7500 crore, has grown at 15% in last five years. For the period 2016-21 it is expected
to grow at CAGR of 12%. The sales are expected to reach INR. 445 billion. Innovation in products,
lifestyle changes, increasing disposable income and improved distribution are enabling
opportunities in sales in lower-tier cities and rural areas (Bali, 2017)2.

Organised players are succeeding due to large number of SKUs with local and global flavours. They are
also aggressively promoting their products through sports events and celebrity endorsements. The biggest

1
The management case on Pratap Snacks has been prepared from secondary sources by Saripalli Bhavani
Shankar, Shivani Chouksey and Vishesh Singh (PGP 2017-19) for classroom discussion in the Rural
Marketing course. The case is for demonstrating a decision problem but not as an endorsement of effective
or ineffective decisions by the management. Please do not quote the information from this case.
2
Bali, S. (2017). “How Desi Chips Brands Nibbling Away at Market Shares of Swanky MNCs”, May 17,
https://www.financialexpress.com/industry/how-desi-chips-brands-nibbling-away-at-marketshares-of-
swanky-mncs/670042/ (Accessed as on 10.3.2019)

1
competition for chips industry is coming from extruded snacks and Namkeens. Increasing procurement
costs of potatoes is also leading manufacturers to tilt towards extruded snacks and namkeens. Pepsico
India is the market leader in potato chips industry, however, Prataap Snacks and Balaji Wafers with their
aggressive pricing and value for money are taking away market share (Source: Company, NSPL
Research 2018).

Balaji Wafers and MTR offer banana chips in the market and Tapioca and Carrot chips are
produced by small companies with regional presence. Unbranded chips come in large variety and
are sold fresh. In the organized chip market smaller players are restricted to certain regions or cities
and only large players reach larger geographies. With increasing urbanization consumers are
becoming demanding and companies serving their needs survive the market. Products from
companies in the organized sector are perceived as healthier as they come in multilayered and
attractive packaging. About 60% of the chips consumption happens in North and West markets of
India which are catered by small and medium size firms based out of Madhya Pradesh (MP). While
north and west markets like potato chips, south markets like freshly made potato, banana, tapioca
chips. Taste being important factor all companies try to bring in local flavours to win over
customers across the country (Source: HDFC Securities Ltd).

COMPETITION IN THE INDUSTRY

Prataap Snacks Limited (PSL) has formidable competition for its products in Indian market. Table
1 lists out the companies and products which are strong competitors of PSL.

Parle: Parle Wafers has units in Bahadurgarh, Indore, Kolkata and Madurai to serve the Indian market.
It offers six wafer variants to consumers carving itself a niche market in the overall snacking market.
Parle wafers are exclusively available in certain typical which is its big strength. It is performing well
through exclusive retail outlets but sales drop by 10% when entering multi-brand retail outlets. Snacks
contribute 3% to Parle’s total revenue of which 1-1.5% comes from wafers market. The organization is
now trying to increase its footprint and visibility at the outlet level (Bali, 2017)3.

CavinKare: It introduced wafers in the year 2013-2014 with production base at Bhiwandi. The target
markets are in Delhi-NCR, Gujarat, Karnataka, Maharashtra and Tamil Nadu. CavinKare (CK) keeps
introducing one to two variants for every six months to year to find out flavours liked by consumers. CK
receives 35% revenue from selling chips and wafers. The organization is trying to establish top of the
mind recall for its brand of wafers and chips among consumers. To achieve this goal it focuses on quality,
freshness and volume of the products (Bali, 2017)4.

Balaji Wafers: The company has manufacturing units in Rajkot and Valsad districts of Gujarat; Indore
district of Madhya Pradesh and Uttar Pradesh. Balaji sells its products in Gujarat, Goa, Madhya Pradesh,

3
Bali, S. (2017). “How Desi Chips Brands Nibbling Away at Market Shares of Swanky MNCs”, May 17,
https://www.financialexpress.com/industry/how-desi-chips-brands-nibbling-away-at-marketshares-of-
swanky-mncs/670042/ (Accessed as on 10.3.2019)
4
Bali, S. (2017). “How Desi Chips Brands Nibbling Away at Market Shares of Swanky MNCs”, May 17,
https://www.financialexpress.com/industry/how-desi-chips-brands-nibbling-away-at-marketshares-of-
swanky-mncs/670042/ (Accessed as on 10.3.2019)

2
Maharashtra and Rajasthan markets (Bali, 2017)5. Being a dominant player in Gujarat and Maharashtra
the organization has secured 70% and 60% share respectively with 600 dealers. In 2014 it invested about
INR. 250 crores to set up factory in Rajkot to produced baked, multigrain healthier snacks. It is reducing
oil usage in production of traditional potato chips manufacturing to cater to the health needs of its
customers. Balaji doesn’t spend on marketing and advertising while major player Pepsico spends about
8% of its revenues on advertising. Growth of potato chips market has come down to single digits due to
consumer resistance for consuming more chips. However, namkeen segment is growing 20% annually.
The company remains regional in focus due to its family control and less induction of professionals in
the firm. This sole emphasis on family people running the business does pose challenges for the next
phase of growth for the company (Business Today, 2014)6.

PRATAAP SNACKS: THE JOURNEY SO FAR

Prataap snacks incorporated in 2009 is one among the top six snack firms in India with INR. 9,000mn
turnover. It manufactures and sells extruded snacks; fried & sliced chips/crisps made from potatoes,
hummus, lentils; and namkeen under the Yellow Diamond brand in 28 states of India. In financial year
2012 Prataap acquired Prataap snacks under a business transfer agreement thereby taking over Yellow
Diamond brand. Understanding of a unique market segment in back alleys of towns, innovations in
product, extensive distribution and strategically located manufacturing units helped establishment of
Yellow Diamond. East, west, north and south markets provide Prataap snacks 34%, 30%, 25% and 11%
shares respectively (Edelweiss 2018)7.

Prataap’s brand philosophy is “Our brand philosophy emphasizes delivery of Maximum Value To
Consumers’. The emphasis is on quality, taste and quantity for the money paid by the consumer
for the products. The organization presents itself in the following caption in Hindi language i.e.
“Dildaar hai hum”, which roughly translates into “we are people with big hearts” 8. The
organization has its plants in various locations of India. The details are presented in Table 29. The
capacity utilization of these plants is provided in Table 3. The organization garners some
production, distribution and cost benefits due to its plant locations, which are given in Table 4.
With these units in different parts of the country the organization expects to penetrate the
concerned markets and sell more of its products. Details of variants in products along with the
SKU prices are provided in Table 5.

5
Bali, S. (2017). “How Desi Chips Brands Nibbling Away at Market Shares of Swanky MNCs”, May 17,
https://www.financialexpress.com/industry/how-desi-chips-brands-nibbling-away-at-marketshares-of-
swanky-mncs/670042/ (Accessed as on 10.3.2019)
6
Business Today (2014). “Snacking its way to success”,
https://www.businesstoday.in/magazine/special/balaji-wafers-best-emerging-indian-companies-2014-
packed-food/story/211902.html (Accessed as on 10.3.2019)
7
https://www.dsij.in/productAttachment/premarketreports/Market_PratapSnacks_Edelweiss_22.02.18.pdf
8
Yellow Diamond (2019) “Brand Philosophy”, http://www.yellowdiamond.in/about-us/, Accessed as on
25.9.2019.
9
http://www.yellowdiamond.in

3
Market Penetration: PSL’s is trying to increase its market penetration with its brand philosophy
which enabled initial growth. The organization is aiming to get more market share by crossing
over from smaller / subsistence markets to serving customers of all classes. It intends to go deeper
in states such as Punjab, Rajasthan and Uttar Pradesh. It is trying to build brand loyalty with sale
of Rings products in south zone, which helped its success in east zone. In already successful east
zone it wants to launch complete product portfolio to improve sales revenues. PSL is trying to
introduce its products to premium outlets after succeeding in selling its products in the smaller
shops in back alleys of towns. Hypermarkets and supermarkets usually stock larger size SKUs and
PSL is stepping forward in this direction. PSL also intends to expand in south Asia where similar
tastes and preferences exist (Source: HDFC Securities Ltd).

PSL’s DISTRIBUTION
The company has established a strong distribution network ahead of its time and has focused on
establishing a strong base in Tier B, C and D sales outlets, where the SKU at Rs 5 is sold the most.
Distribution costs have further reduced through tying up with contract manufacturing facilities to
reduce the lead distance to end markets as well as increase the efficiencies in procurement of raw
materials. Contract manufacturing facilities near the markets helps reduce costs. For proprietary
products e.g. Yum Pie PSL is willing to expand on its own. Prataap has used reverse logistics10 to
cater to cities like Delhi and Mumbai at a relatively cheap rate from its manufacturing facilities in

10
Reverse logistics stands for all operations related to the reuse of products and materials. It is “the process
of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process
inventory, finished goods and related information from the point of consumption to the point of origin for
the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the process of
moving goods from their typical final destination for the purpose of capturing value, or proper disposal.
Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics.”

The reverse logistics process includes the management and the sale of surplus as well as returned
equipment and machines from the hardware leasing business. Normally, logistics deal with events that
bring the product towards the customer. In the case of reverse logistics, the resource goes at least one step
back in the supply chain. For instance, goods move from the customer to the distributor or to the
manufacturer. When a manufacturer’s product normally moves through the supply chain network, it is to
reach the distributor or customer. Any process or management after the sale of the product involves reverse
logistics. If the product is defective, the customer would return the product. The manufacturing firm would
then have to organise shipping of the defective product, testing the product, dismantling, repairing,
recycling or disposing the product. The product would travel in reverse through the supply chain network
in order to retain any use from the defective product. The logistics for such matters is reverse logistics.
(Source: https://cerasis.com/what-is-reverse-logistics/, Accessed as on 25.9.2019)

4
Indore. This enables the company to reach to most metros in a cost-efficient manner. Delhi and
Mumbai together contributed 18-20% of overall sales in FY18 (Source : Nielsen).

PSL’s products are sold in urban, semi-urban and rural regions of India. Points of sale for snack
food products include traditional retail points, such as grocery stores, as well as modern retail
outlets including supermarkets, hypermarkets and convenience stores for sales in urban areas. It
distributes its products through super stockists who are appointed to operate and maintain
outlets/warehouses for sale to distributors and dealers. It has entered into formal agreements with
super stockists and has committed commercial relationships with most of its super stockists for
over approximately three years. The East Zone is generally considered to be one of the most
difficult markets. Its wide distribution network and product configuration has enabled it to achieve
a CAGR of 45.82% in revenues from operations (net) from the East Zone in the period from Fiscal
2013 to Fiscal 2017. (Source: HDFC Securities Ltd)

Extent of Distribution: PSL has network of 235 super stockists and 3800+ distributors with reach
of 17 lakh outlets serving 28 states. The number of stockists in each region is provided in Table
6. Efforts are on to increase penetration in existing key markets i.e North and West. It also aims
to establish a sizeable presence in Gujarat and the Southern markets which have strong regional
players along with unorganised players. PSL looks at quality of stores in which products are
displayed along with increase in their numbers. Rings, Yum-pie, Wheels etc. which are popular
among children, have seen a higher presence near schools and smaller SKUs of Namkeen are
more prevalent near tobacco and liquor shops. This in effect, increases the per dealer off-take
growth rate. Extruded snacks, particularly Rings, and specific flavours (eg: Cream N Onion) have
been a huge success in the East and the company is aiming to garner market share and brand
loyalty in the Southern region through a similar strategy. A large opportunity lies in the “rurban”
part of India – the urban part of rural areas. These markets are rural, yet have the influences of a
more affluent urban lifestyle. These rurban clusters are of significant importance, as 33% of the
total villages in India account for 80% of all rural FMCG sales (Source : Nielsen).

MARKETING
Going forward the management envisages chips and namkeen to be potent growth drivers. Namkeen,
which contributes 13% to revenue, is one of the fastest‐growing segments. Management also
believes namkeen and chips will yield higher RoE11 going forward as the former entails much higher
asset turnover of 8x compared to 4x for potato chips’ and 6x for extruded snacks. Moreover, as its potato
chips and namkeen plants operate at full capacity utilisation, Prataap has expanded its production capabilities
through third‐party manufacturers to aid its efforts to deepen pan‐India presence. To cater to rising demand,
Prataap has added production lines for chips and namkeen along with a packaging line, utilities and
ancillary equipment at its Indore manufacturing facility. It also intends to modernise its existing facilities.
The company will also replace some of its existing Chulbule packaging machinery at Indore with new and
more advanced machinery and also modernise its effluent treatment plant at Indore. Currently, the
production line for rings at the Guwahati–II manufacturing facility has certain unutilised additional
capacity compared to that of the packaging line. Prataap is planning to utilise this additional capacity by

11
In corporate finance, the return on equity (ROE) is a measure of the profitability of a business in relation
to the equity, also known as net assets or assets minus liabilities. ROE is a measure of how well a company
uses investments to generate earnings growth. (https://en.wikipedia.org/wiki/Return_on_equity, Accessed
as on 25.9.2019)

5
adding certain packaging machines to match the capacity of packaging and production lines. To deepen
its penetration in South, the company is expanding the packaging line and machinery for Chulbule at
its contract manufacturing facility at Bengaluru (Edelweiss 2018)12.

Value proposition: Prataap’s brand philosophy emphasises delivery of maximum value to consumers
and is reflected in its marketing campaign “Dildaar Hain Hum”. The company’s brand equity has
strengthened over the years driven by product innovation and cost efficiencies in its production and
distribution operations, through a wide range of consumer‐driven flavours and providing relatively high
grammage. Relatively high grammage along with quality is a good value proposition for the price
conscious middle-class Indian consumers who are its largest customers. This has been an important factor
in growth and acceptance of Yellow Diamong and its market share in urban, semi‐urban and rural
markets. This value proposition, leading to increased brand loyalty, enables the company to redirect some
of its advertisement and marketing expenses towards improving its product quality and increasing SKU
weight as well as further streamlining distribution expenses. Its INR5 SKUs offer up to 25% more
grammage per pack compared to the market leader across various snack segments. Revenue from
INR5 SKUs across various product categories constituted a major chunk of total revenue from
operations (net) in FY17. The promotional activities such as including a wide range of toys in its rings
products primarily targeted at children, also provide a value proposition for kids. The company has, over
the years, developed an effective procurement system for such toys. The revenue generated by its rings
products has clocked 106% CAGR since launch to FY17 and generated revenue of INR3,986mn in
FY17. The higher growth in market share of rings products introduced in FY12 compared to other
products is in part attributable to the toys. These thematic toy campaigns have contributed effectively to
its brand building efforts associated with value proposition for consumers (Edelweiss 2018)13. Prices
of different products offered by PSL are given in Table 7.

Branding and Advertising: The company has spent INR.368.08mn on advertising and sales
promotions of its products in FY17 across kids’, general entertainment and other channels. Also, in
2016 it appointed Bollywood star Salman Khan as brand ambassador for two years. Moreover, the
company has tie ups with Nickelodeon channel for cartoon characters for rings, which it advertises on
various kids channels regularly. Prataap aims to increase its targeted marketing approach for rings
products with monthly visibility campaigns on popular Hindi, English and vernacular kids’ channels. The
company has, in the past, launched a multi‐media campaign “Dildaar Hain Hum” which intends to increase
brand awareness and strengthen recall of the Yellow Diamond brand (Edelweiss 2018)14. Advertising
expenses as a percentage of revenue are provided in Table 8. The organization has introduced lot of
advertisements for attracting children. The links for six different ads featuring children along with
“Motu and Patlu” two famous cartoon characters in a programme with same title are available at
http://www.yellowdiamond.in/newsroom/ (Please use this link and watch the advertisements
before coming to the class). Motu and Patlu is a programme which is aired in Nickelodeon channel
for children.

12
https://www.dsij.in/productAttachment/premarketreports/Market_PratapSnacks_Edelweiss_22.02.18.pdf
13 https://www.dsij.in/productAttachment/premarketreports/Market_PratapSnacks_Edelweiss_22.02.18.pdf
14
https://www.dsij.in/productAttachment/premarketreports/Market_PratapSnacks_Edelweiss_22.02.18.pdf

6
NEW PRODUCT LAUNCHES
PSL’s unique selling proposition is its differentiating offerings which include innovative flavours targeted at
addressing consumer tastes, market trends and providing superior value to consumers. The company is
determined to sustain its innovation drive and is planning to launch five‐six products over the next three
years in the sweet snack category. It is estimated that the confectionaries market will grow at about 15‐18% over
the next four‐five years driven primarily by chocolate offerings. Prataap perceives this as a higher margin
segment, characterised by significant demand and growth potential, which is relatively untapped. The
company intends to harness its currently established distribution network to cover new products it is
planning to introduce. In line with this philosophy, the company has launched Yum Pie in the sweet snacking
segment under the Rich feast brand (It is similar McVities’ Jaffa cake which is available globally but not in
India). Yum Pie is a three‐layered treat with sponge cake, flavoured jam and chocolate. Priced at INR5 Yum Pie
has been launched in three different flavours (orange, strawberry and mixed fruit). The company has started
advertising of Yum Pie on kids channels and distribution is being stacked up gradually. Prataap is
targeting launch of 2‐3 new products in the sweet snacking segment in the near term and 5‐6 products over
the next three years. The sweet snacking category is primarily dominated by Lotte (INR3,500‐4,000mn
annual revenue) and it is primarily present in modern retail and Class A outlets. Prataap hopes to leverage
Yum Pie through its distribution network to Tier‐ B, C and D class outlets. Yum Pie has higher gross margin
(50% plus) and lower freight cost (Edelweiss 2018)15.

PSL is also planning to launch new products in the extruded snacks segment such as nachos (tortilla chips),
curves and lentil crackers. It is hoping to leverage its value to customers’ credentials by launching an
INR10 product and competing with players like Cornitos, Dorito and Senor Pepito. It is planning to launch four
different flavours in the Nachos segment which include Cheese Jalapeno, Thai Sweet Chilli and Tikka Masala
flavor. The company is launching four flavors of Nachos. Curves are also getting launched in 3 flavors –
Cheese, Masala and Tomato flavor. Prataap has also launched a healthier chips segment under the brand 7
wonders, priced at both INR 10 and INR30 in the extruded snacks segment. Health and wellness awareness
across India and demand for healthier snack options have increased. To cater to this demand, the company has
launched a new variety of savoury snacks made from healthier ingredients including hummus and lentils.
Prataap is planning to increase its R&D efforts on product attributes that are most valued by consumers,
including taste, nutrition, food safety and convenience (Edelweiss 2018)16.

CHALLENGES AHEAD
As discussed in the introduction, PSL needs to (i) improve its brand image from being local to national;
(ii) attract distributors who supply to Type A & B outlets where better off customers are present, (iii)
credit facilities for Type A & B outlets to stock products and (iv) figure out ways to succeed in snacks
market which has tough competition.

15 https://www.dsij.in/productAttachment/premarketreports/Market_PratapSnacks_Edelweiss_22.02.18.pdf
16
https://www.dsij.in/productAttachment/premarketreports/Market_PratapSnacks_Edelweiss_22.02.18.pdf

7
Table 1 Competitors of PSL’s Products

Categories Prataap's Brands Key Competitors

Lays (Pepsico), Bingo (ITC), Balaji,
Potato Chips Yellow Diamond Parle's Wafers, Haldirams
Chulbule, Rings, Wheels, Kurkure (Pepsico), Balaji, Crax (DFM
Extruded Snacks Puffs, Kurves, Scoops Foods), Bingo (ITC)
Haldirams, Lehar (Pepsico), Balaji, Bikaji
Namkeen Yellow Diamond Foods
Doritos (Pepsico), Cornitos (Green Dot
Nachos Yellow Diamond Health), Act II (Agro Tech)
Sweet Snacks Rich Feast (Yum-Pie) Britannia, Lotte
Source: HDFC Securities Ltd report, 2017

Table 2 Location of Units and Products Produced

Location Type Products

Chips, Rings & Puff, Namkeen,
Indore I Owned Chulbule
Indore II Owned (by wholly-owned subsidiary) Sweet Snacks such as Yum-Pie
Guwahati I Owned Rings & Puff, Chulbule
Guwahati II Owned Rings & Puff, Chulbule
Kolkata I Shared Contract Manufacturing Chips
Kolkata II Shared Contract Manufacturing Chips
Bengaluru I Dedicated Contract Manufacturing Rings & Puff
Bengaluru II Shared Contract Manufacturing Chips
Ahmedabad I Shared Contract Manufacturing Chips
Ahmedabad II Shared Contract Manufacturing Nachos
Source: HDFC Securities Ltd report, 2017

Table 3: Capacity utilisation by Prataap Snacks

S. No Product Category Capacity Utlisation (%)

1 Rings 65 – 70
2 Chulbule 65 – 70
3 Potato chips 95 – 100
4 Namkeen 95 – 100
Source: HDFC Securities Ltd report, 2017

8
Table 4 Prataap Snacks Plant Locations: Costs and Benefits

S. No City / State / Distribution Production Cost benefits

Owner benefits benefits
1 Indore / Madhya Caters to Northern Indore in MP is Benefits from attractive
Pradesh / PSL and Western zones a key hub for reverse logistics trends
sourcing quality given that MP is a major
potatoes consumer state
2 Guwahati 1 &2 / Caters to the Guwahati's The facilities in
Assam / PSL Eastern Zone location benefits Guwahati are eligible for
from attractive Income tax exemption
reverse logistics
trends
3rd Party owner
3 Kolkata / West Shared contract manufacturing unit for potato chips to cater to
Bengal East India market
4 Ahmedabad / Shared contract manufacturing unit for Potato Chips that caters to
Gujarat/ Third Maharashtra and Gujarat region
party
5 Bangalore 1/ Dedicated contract manufacturing unit for Rings and Pellets to
Karnataka / cater to South India
Third party
6 Bangalore 2/ Shared contract manufacturing unit for Potato chips to cater to
Karnataka / South India
Third party
Note: In 3rd party ownership information on PSL production and cost benefits is not available

Table 5: List Product Flavours, SKUs and their Year of Introduction

Product Year Flavours SKUs

Chulbule Introduced in FY06, and the manufacturing Tangy Tomato, Teekha Tadka, INR.5,
business was acquired by the Company in Noodle Masala, Taza Tomato, 10,15
FY12. Achari Chatka, Tango Mango
and Cream ‘N’ Onion
Rings FY12 Masala, Tomato, Mango INR.5,
Chutney, and Chilli Cheese 10 ,15
Puffs Introduced in FY11 and the manufacturing Cocktail, Tomato, Pudina and INR.10
business was subsequently acquired by the Punjabi Tadka
Company in FY12.
Wheels Introduced in FY10, and the manufacturing Chatpata Masala and Tomato INR.10
business was acquired by the Company in Ketchup
Scoops FY12. Masala and Tomato INR.10
Note: SKUs might vary for different product variants; Source: Edelweiss

9
Table 6 Number of Super Stockists

S. No Zone No of States No of Super Stockists

1 North 6 49
2 East 12 43
3 South 5 16
4 West 4 110

Table 7 Prices of Different Products Offered by PSL and Competition: INR. 5

Prataap DMF Balaji Wafers Pepsico India ITC (Bingo) Haldirms

snacks foods
Extruded Snacks
Rings: 15g Naatkhat Wheelors:30g Kurkure Mad Taka Tak: 24g
(2rs):10g Masala: 20g Angles:23g
Wheels: 25g Chataka Panga: 24g
Crax Corn Pataka:30g Cheetos Balls: Tedhe
Scoops:25g Rings:15g 22g Medhe:27g Whoopies
Pop Rings:30g Balls: 22g
Fungroo: 25g Tangles: 20g

Krunchy No Rulz: 25g

Sticks: 25g

Kurves:24g

Puffs: 28g

Chulbule: 28g
Potato Chips
16g N.A 18g 12.5g 13g 17g
Namkeen – Aloo Bhujia
30g 28g 25g N.A. N.A. 25g

Table 8 Advertising as Percentage of Revenue

S. No Financial Year Advertising as a percentage of

revenue
1 2011-12 1.5
2 2012-13 0.8
3 2013-14 0.8
4 2014-15 2.2
5 2015-16 4.0
6 2016-17 4.1

10