Consumer Staples have been in the less than 20% branded category and probably retail supply chains will take more of the branded yet wholesale share in biscuits, candy and soap in modern retail . However the growing consumption boom has always left the Hindustan Unilevers, The P&Gs and even the ITCs in the cold.

Despite category development and brands worth INR 750 mln in quarterly sales as also a gross $1 bln brand value in Consumer staples, ITC itself has seen a need to bleed in the sector and the growth of the unorganised sector is yet not capped keeping a 85% market share in all Foods and personal products as well as home care products for well over two decades that India set otut on the reform path. A critical bridge between Food security and Luxury spends on lifestyle foods at the top of the brand value chain, the unorganised sector , even importers from the middle east may not thrive but manage most of the volumes in the industry. 

The question of course comes fromt he happy developments for Dabur and Godrej, with forays in Africa underlining India's outward thrust, but the challenges that remain int he emerging markets and in India and China for branded or aspirational categories of atta, soap and dye are limited for indian brands, P&G and even the body Shop or L'Oreals of the world. The challenge may well serve them in 5 out of 40 such proucers and 5 out of 40 such product caategories, but India and China have time and again proved they are not in a hurry to go anywhere domestically, unlie cellphones for example, like dishes and Television which are a priority for most of india's domestic 220 mln household s and mby corollary more so in other underdeveloped markets. 

Governance structures and mandatory NGO participation with development aid in Africa may change it for Healthcare or Green farming categories but other infrastructure will fall prey to military / energy coups and cheap imported Chinese goods..just first thoughts for our foray into the dark continent outside and the unbranded continent within, which needs a Cadbury;'s name to sell some Oreos in the confectioanry sector a brand of $1 bln for us being the final pinnacle in most product lines in food, personal and home care as HUL has found in the last two decades. 

Posted via email from The India Investment Post