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Bagrry's India to enter QSR category worth Rs 60 bn dominated by Domino's, KFC & McDonald's

21-January-2016
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Bagrry's India to enter QSR category worth Rs 60 bn dominated by Domino's, KFC & McDonald's

Homegrown cereal maker Bagrry’s India is foraying into food retail business with quick service restaurants (QSR) taking on big fast-food chains like KFC and Mc Donald’s with their healthy alternatives. To be called Bagrry's On the Go, the first store is scheduled to open early next month in New Delhi and will serve items such as oats-based sandwiches, burgers and bagels, muesli and wheat bran-based desserts and multigrain meals for lunch and dinner, as per media reports.

 However, in the beginning, the outlets will be restricted to North India.

Conceptualised by Aditya Bagri, son of founder Shyam Bagri, the company is tying up with third-party kitchens to source food made with its own ingredients. 

McDonald’s has already been working on their menu for a while keeping in mind the calorie-conscious customers.

“At McDonald’s we are continually committed towards enhancing our menu and ensuring that our offerings are aligned to the nutritional benefits that customers seek. Over the years, we’ve been successful in making sustainable changes to our recipes through small but significant steps.

We have made nutritional improvements through reformulation of our sauces and reduced the fat, salt and sugar content.  There has been an overall 8% to 10 % impact in the calorie count of our products as our menu management team has worked towards reducing the oil content in our sauces from 67% to 25%. This has also been instrumental in bringing down calories in our sauces by up to 40%. We have reduced sodium across our various sauces, buns and McNuggets by 10% and in our fries by 20% since 2013. Furthermore, our dairy products such as the popular soft-serves have less than 3% fat,” says Kedar Teny, Director- Marketing & Digital, McDonald's India (West & South).

This January Mc Donalds re-introduced their core product Maharaja Mac in two variants: a vegetarian version and a flame-grilled chicken version. “We also allow customers to customize their burgers with the choice of buns and we had introduced Focaccia buns which comprise of extra virgin olive oil. We have also added diversity and choices to our breakfast menu by offering wholesome grilled products like hash browns,” Teny offers.

According to a report by researcher Technopak Advisors, the market size of QSR worth Rs 5,500 crore in 2013, is projected to grow at a CAGR of 25% to reach Rs 16,785 crore by 2018. The space has around 90-100 Indian and international players (like Haldiram’s, McDonald’s, KFC, Subway and Domino) with approximately 3000 outlets spread across India where foreign brands dominate with 60 per cent market share. Subway has quite a few healthy options in the form of multi-grain-based subs while KFC has few wrap options.

Bagrry's is eyeing Rs 400 crore turnover in five years as it plans to expand into a multi-product and multi brand company. Its share in breakfast cereals is over 17% in a market estimated at over Rs 800 crore, according to researcher Euromonitor, which is dominated by Kelloggs.

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