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Modi Naturals started in 1974 under the visionary leadership of Devi DayalModi. Anil Modi, currently the chairman of the company, was chiefly into the commodity business of manufacturing sunflower oil, rice bran oil, mustard oil, de-oiled cakes and rice-bran wax, which sold to several regional players and some national players as well.
Akshay Modi, Executive Director, Modi Naturals, shares his experiences and the journey of Modi Naturals with Franchise India.
He says, “Eventually I realized that being a processor of edible oil was not very lucrative in the value chain. Having developed our core expertise in edible oil processing, it was time to expand our horizons.”
He adds, “In 2009, we renamed the company from Anil Modi Oil Industries Ltd to Modi Naturals Ltd. In 2010, the company launched their very first brand, ‘Tarai’, and since then we have moved from strength to strength. After a very encouraging response for ‘Tarai’, ‘Oleev’ was launched in the year 2011, followed by Miller, Olivana Wellness body Oil and Rizolo in the year 2015. Our flagship product, ‘Oleev Active’, which combines the best of olive oil and rice bran oil, was launched under the brand 'Oleev' in 2011.”
Modi shares, “This year, we have decided to diversify into the ready-to-cook segment with the launch of another famously healthy food item, PIPO premium popcorn, which is expected to perform well in a market that is growing at a CAGR of 10% every year.”
The Evolution of Indian SnackSegment
He explained the evolution of Indian snack segment as:
The snack segment in India twenty-five years ago consisted of mostly savory home-cooked items. There were fewer alternatives such as fried sodium-filled potato chips and namkeens prepared in saturated oils. Options such as popcorn were present but made locally.
The mid-90s saw an explosion of international brands into the country. The first two decades of the 21st century have seen an expansion and considerable growth in an era of fast-paced lifestyles and growing disposable incomes. Snacking alternatives have significantly multiplied. There are many more flavors, exotic spices, fusions and blends.
Because of the expansion in branded retail and e-commerce, the consumer base has also risen dramatically. At present, the branded salty snacks’ market is estimated to be worth INR 10,000 crores (USD 1.68 billion), and is projected to grow at a CAGR of 15-18% over the next few years.
Why Do Most Snack Franchising Fail?
Modi points out some reasons why most snack franchising fails, such as:
- Not respecting shifting consumer preferences toward healthy lifestyles and wellness. Another reason is not adapting to cater to indulgent tastes and flavor cravings effectively.
- Organizations not being nimble about making digital transformations rapidly, streamlining workflows and cutting down overheads.
- Not being able to continue innovating and evolving to match consumer imperatives and preferences to survive in this business.
