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‘NE’ which way, Mcfills Foods eyes a share of the snack foods market

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‘NE’ which way, Mcfills Foods eyes a share of the snack foods market

Looking at the potential in the snack food category, Ahmedabad-based Mcfills Foods has recently forayed into this segment launching four new brands. The brands, NE Day, NE Time, NE Where and NE Way will be available in 22 states across India at a price range of Rs 5 to Rs 20, serving six different products.

A recent ACNielsen study suggested that snack foods were growing the fastest among all FMCG products – 48 per cent in volume and 33 per cent in value – year-on-year. “A lot of local branding is happening in the snack food market, out of which 85 per cent is in the unorganised sector. Hence, it’s a very fertile market,” commented Nimesh Shah, CEO, McFills.

As for the pricing strategy, Shah said that the products were modestly placed. “We are not getting into any kind of price wars, but offering more to consumers in terms of quality and innovative non-fried products in the same price brand,” he stressed.

“Our current retail base, which is 100,000, is targeted to cross 200,000 in the first year,” added Shah. The company also plans to launch with new variants to capture a larger market share in the snack food market, as Shah believed that only consumer centric and innovative companies could survive in the long run.

The company has also launched two websites as part of their overall marketing strategy. While gives insight into the company, is an interactive website.

“Web is one of the strongest growing mediums and we want to connect with the consumer on different activities, which he/she prefers to do online, like sending greeting cards, downloading wall papers, playing games, seeking information, etc,” said Shah.

But what about competition? Said Shah, “Frito Lays can be considered as a strong competitor. Although we do not have a direct competitor in our segment, as these are new products, first-of-its kind and non-fried. To counter competition, we have already placed an innovative product range, an all together new packaging and flavours to suit the Indian taste buds.”

Manish Patel, MD, McFills said that with the growing acceptance of branded products and growth of the FMCG sector in the country, McFills aimed to achieve a turnover of Rs 170 crore in the first year itself.

Added Shah, “Within a short period of the launch, we are at 48 per cent of daily revenue to meet the first year’s target. This will increase substantially by additions in the outlet and penetration in the market.”


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