International Journal of Management and Social Sciences Research (IJMSSR) Volume 2, No.

5, May 2013

ISSN: 2319-4421

63

RTE and RTC Foods - A New Era in the Processed Food Industry With Special Reference to MTR
Tazyn Rahman, Assistant Professor, Jaipuria Institute, Ghaziabad

ABSTRACT
India has made lot of progress in agriculture & food sectors since independence in terms of growth in output, yields and processing. India is the largest producer of milk, fruits, cashew nuts, coconuts and tea in the world, the second largest producer of wheat, vegetables, sugar and fish and the third largest producer of tobacco and rice. With the availability of "Retort Technology" developed by Defence Food Research Laboratory (DRFL); food processing sector like Ready to Eat ( RTE ) and Ready to Cook ( RTC ) food segment has emerged as one of the fastest growing sectors in the Indian economy. The market is worth INR 800 mn in 2010 and shows huge potential for growth by tapping a larger consumer base. The changing urban lifestyle of the Indian middle class , increasing prevalence of double income nuclear family structure, rising disposable income, increasingly larger number of globe-trotting Indians with an experimentative palate are all favourable demographic factors spurring the adoption of RTE and RTC foods in India. The total processed foods market size this year is Rs1500 crore, out of which Ready to Cook foods capture Rs 1275 crore and Ready to Eat capture Rs.225 crore this year and a expected growth rate of 25 30% over next 5 years shows huge potential for growth by tapping a larger consumer base. Under Ready to Cook product, Instant noodles is leading with Rs1000 crore followed by Soups Rs. 200 crore , Pasta Rs.50 crore and others Rs.25 crore. According to Tata Strategic Management Group, the RTE market is expected to grow to Rs 2900 crore by 2015. In the RTE and RTC segments, the competitive landscape is largely dominated by 4-5 players, namely MTR, ITC, Bambino, Priya and Kohinoor Foods. MTR is amongst the top five processed food manufacturers in India having a turnover of US$ 261 million with the export market accounting for approximately 10 per cent of MTRs total sales. This paper tries to analyse the marketing strategy adopted by MTR and opportunities available in the Indian market and the major challenges that needs to be overcome to remain in the market.

INTRODUCTION AND CURRENT INDIAN MARKET FOR FOOD PROCESSING INDUSTRY

India has made lot of progress in agriculture & food sectors since independence in terms of growth in output, yields and processing. It has gone through a green revolution, a white revolution, a yellow revolution and a blue revolution. Today, India is the largest producer of milk, fruits, cashew nuts, coconuts and tea in the world, the second largest producer of wheat, vegetables, sugar and fish and the third largest producer of tobacco and rice. Now the time is to provide better food processing & its marketing infrastructure for Indian industries to serve good quality & safest processed food like Ready to Eat and Ready to Cook food. It is opening a new window in world scenario as far as taste & acceptance is concerned. The retort processed foods do not require rehydration or cooking and can be consumed straight from the pouch with or without pre-warming, depending upon the requirement of the users and the weather conditions. Today, almost all companies in food processing sector using "Retort Technology" developed by Defence Food Research Laboratory (DRFL). Up until a few years back, the RTE foods market had not really provided any options beyond the Cup O Noodles produced by Indo-Nissin. These foods meet the specific needs of convenience, nutritional adequacy, shelf stability, storage, distribution to the centers and have become very popular after the Year 2002. The pioneer introduction of retorting technology has made the sale of Ready to Eat food products commercially viable with great taste. The Indian Ready to Eat (RTE) and Ready to Cook (RTC) food segment has emerged from its early days of being a fringe alternative to home cooked meal or to eating out. A fast-paced urban lifestyle, increasing prevalence of nuclear family structure, rising disposable income, increasingly larger number of globe-trotting Indians with an experimentative palate are all favorable demographic factors spurring the adoption of RTE and RTC foods in India. Further, the growth of modern retail has provided unprecedented brand and category visibility to convenience foods. Also, technological advancements in packaging and flavor science have brought RTE and RTC foods centre-stage among urban Indians. In the RTE and RTC segments, and specifically in pasta, vermicelli and instant mix categories, the competitive landscape is largely

Keywords
Ready to Eat, Processed food, Retort Technology, MTR

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International Journal of Management and Social Sciences Research (IJMSSR) Volume 2, No. 5, May 2013

ISSN: 2319-4421

64

dominated by 4-5 players, including MTR, Gits, ITC, Bambino, and Kohinoor Foods. Apart from focusing on the domestic market, these companies have also expanded their reach internationally in geographies with a sizeable Indian Diaspora. On the domestic front, there is an interesting competitive dynamics emerging. With the introduction of private labels, e.g. Tasty Treat by Big Bazaar and in-store, freshly-made snack mixes, e.g. idli and dosas, modern retail presents a credible threat for branded RTE and RTC players, who have traditionally relied upon this channel for increasing their visibility and reach. The urban consumers are not complaining though, as they have wider options in product range and prices, easier availability, and increased convenience. A larger proportion of urban consumers are experimenting with RTE/RTC foods on a more frequent basis with the top two value propositions being 'saves time' and 'tastes good'. Among the three categories mentioned earlier, pasta and instant mixes lead in terms of frequency of consumption. The market of processed food industry in India has been a new concept which is in its nascent stage. The total processed foods market size this year is Rs1500 crore, out of which Ready to Cook foods capture Rs 1275 crore and Ready to Eat capture Rs.225 crore this year and is expected annual growth of 25 30% over next 5 years shows huge potential for growth by tapping a larger consumer base. Under Ready to Cook product, Instant noodles is leading with Rs1000 crore followed by Soups Rs. 200 crore , Pasta Rs.50 crore and others Rs.25 crore. According to Tata Strategic Management Group, the RTE market is expected to grow to Rs 2900 crore by 2015 .

An analysis of the drivers explain the factors for growth of the industry including the target consumer base for RTE is expanding, organized retail displays advantages in driving RTE sales, cold chains development, and government initiatives. Indian Government is also providing more infrastructure for this sector. Excise duty is now ZERO % on RTE and 100 % tax deduction for the first 10 years for new units. This allows manufactures to bring down their prices & spreads its flavors to the world. The prices of most brands in this segment range from Rs25/- to Rs.40/- for a typical 285g dish. The 'Kitchens of India' range from ITC comes in a tin pack, and is priced much higher than the rest, ranging from Rs110 to Rs150 for 450g. This brand also finds its way to homes overseas, where it is mainly sent as a gift item. Purchases for overseas travel constitute almost 10% of sales in this category. MTR foods is the largest player in this emerging market with a near 65% share. The rest of the market is made up of Satnam Overseas, ITC, Tasty Bites, GCMMF, Haldiram and other local players.

WHY READY TO EAT FOOD

Globalization of Indian food and its culture are the core factors for popularization of ready to eat foods. Main motivation for these ready to eat foods is fast growing foreign market. Retail outlet culture is now growing rapidly in India. Shelf life of these foods are at least 12-18 months. Quality, Taste and Flavor of these foods remains as good as fresh up to the expiry date. Women wanting to spend more time out of the kitchen. More working bachelors staying away from homes. Cost effective in comparison to the Indian cuisine served by the restaurants in foreign countries.

RETORT & ITS PACKAGING

The water RETORT is an equipment or sterilization module through which steam (at 130 degree centigrade for 25 minutes) is applied on food products packed in retort pouches. The retorts use water or steam / air combination as processing medium to heat the container/packages. Compressed air or additional steam is introduced during the processing cycle to provide the overpressure (any pressure supplied to the retort in excess of that which can be normally achieved under steam at any given retort temperature). Overpressure is important in preventing package damage or loss of seal integrity (like bursting), during the heating process. Retort pouches is a flexible packaging material that basically consist of laminates or bounded layers of different packaging films of Polyster-

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International Journal of Management and Social Sciences Research (IJMSSR) Volume 2, No. 5, May 2013

ISSN: 2319-4421

65

Nylon-Aluminium-polypropylene that can withstand high process temperature & pressure. Their most important feature is that, they are made of heat resistant plastics unlike the usual flexible pouches. This makes the retort pouches unique which are suitable for the processing of food contents at temperatures around 120 degrees Celsius.

ADVANTAGES OF RETORT PACKAGING

Pouch laminates permits less chance to overcook during the retorting thus products having better color, texture & less nutrients loss. It requires less energy for sterilization. It requires less disposal & storage space. Low oxygen & moisture permeability. Shelf stable for longer time & requires no refrigeration. Sun light barrier, light weight, easy to open.

New Zealand, Malaysia, Singapore, UAE, Japan and Oman. Starting with the legendary MTR restaurant in Bangalore, Indias silicon valley, now offer 'complete meal solutions'. Its wide range of products include Ready to Eat curries and rice, Ready to Cook gravies, frozen foods, ice cream, instant snack and dessert mixes, spices and a variety of accompaniments like pickles and papads. Its deep understanding of culinary expectations and needs has resulted in many new and innovative products. Its investments in infrastructure and technology ensure them to scale rapidly and consumers across the globe count on to bring them all-natural, wholesome and delicious food that is also convenient and no-fuss. The RTE range currently comprises 22 Indian curries, gravies and rice. In sync with product innovations, the company has also expanded retail presence significantly; contemporary Namma MTR is MTRs retail chain that allows customers to experience the wide MTR range. Namma MTR is split into three sections. One section showcases the entire range of products. The second section is a novel concept kitchen where customers can interact with specialist chefs to learn about MTR products and watch live demonstrations. This concept kitchen also works as an ideal platform for feedback allowing the company to understand and address consumer needs The third section offers a variety of fastfood one can either eat here or get a quick take-away from the express counter and MTR kiosks now serve consumers across Bangalore and Chennai.

MAJOR PLAYERS IN INDIAN ETHNIC READY TO EAT INDUSTRY

MTR Kohinoor Foods ITC Haldiram Tasty Bites Priya

INTRODUCTION OF MTR
MTR Foods Private Limited flagship brand MTR is amongst the top five processed food manufacturers in India having turnover is estimated at US$ 261 million with the export market accounting for approximately 10 per cent of MTRs total sales. MTR, proud for its rich heritage, tradition of food and hospitality began in 1924 with the establishment of the MTR by the Maiya family in Bangalore. The restaurant is a city landmark today and people still stand in queue to savour its unique, completely authentic dishes. Then in 1975 Maiyas diversified in to business of convenience foods and instant mixes. As business expanded modernization and state of art facilities including dedicated Lab and printing and packaging facilities were added. MTR is an ISO 9002 and HACCP certified company which stresses that its products are 100 percent vegetarian and contain absolutely no preservatives. The company was recently acquired by Orkla, a Norwaybased company for US$ 80 Million. After establishing itself in the south, MTR is developing its brand in the west and north Indian markets in line with the rapid expansion of its product line. MTR's wide range of processed foods is synonymous with quality, taste and convenience. MTR manufacture, market and export a wide range of packaged foods to global markets that include USA, UK, Australia,

TYPES OF PROCESSED OFFERED BY MTR

FOODS

The demand for Ready to Eat and Ready to Cook has captured a large amount of the food retail market in India. There is a rise in the demand for foods based on traditional Indian recipes across different states in India and abroad. MTR has introduce various authentically traditional recipes and distinctly Regional Indian flavour in its menu over a period of time. The different types of processed foods offered by MTR are : Rice Meals Rice Meals are the perfect way to enjoy 'home' food anytime and anywhere. Not only are they easy on ones pocket, they're also extremely easy to make. Just dip the pouch in boiling water or pop it in a microwave for a satisfying, wholesome and delicious experience. Available in a variety of exciting combinations like Bisibele Bhath Diet Delite Sambar Rice Tamarind Rice Lemon Rice Rajma Chawal Rasam Rice Jeera Rice Tomato Rice Masala Rice

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International Journal of Management and Social Sciences Research (IJMSSR) Volume 2, No. 5, May 2013

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66

Soups Its range of soups is heartwarming, healthy and 100% natural. Carefully picked ingredients are made into a soup concentrate. This is packed through a special process that ensures the soup retains its mouthwatering aroma and natural flavour. The available verities are: Babycorn & Spring Onion Mixed Vegetable Mulligatawny Spicy Tomato Simply Tomato Spinach & Carrot

Instant Snack Mixes The instant mixes is the result of years of culinary expertise. They are subjected to the most rigorous quality procedures to ensure that you get deliciously consistent results every time you use them. Just follow the simple step-by-step instructions on the pack there's no simpler way to rustle up such a wide variety of delicious and wholesome Indian snacks. Bisibele Bhath Muruku Rava Idli Rice Dosa Masala Upma Rava Dosa Rice Idli Upma & Vada

Ready To Eat Ready to Eat dishes are an amazing combination of convenience, taste and variety. They're 100% natural and have absolutely no preservatives. Its range currently comprises twenty two delicious and completely authentic Indian curries, gravies and rice. They have successfully adapted technology from the Defense Food Research Laboratory, Mysore to make sure each dish has that "justcooked" freshness. The various traditional South and North Indian dished are : South Indian : Avial , Kesari Bhath , Khara Bhath , Pineapple Ss Curry North Indian : Alu Muttar , Chana Masala , Dal Fry , Dal Makhani , Navatan Kurma , PaneerButtar Masala , Paneer Makhani, Bhindi Masala, Mix Veg Curry, Palak Paneer, Peas & Mushroom , Rajma Masala , Veg Polao , Gopi. Frozen Foods A wide range of frozen foods offers stand alone dishes and delicious combos. Because they are processed and packed with cutting-edge technology, these convenient foods retain all their nutritive value and taste. Masala Dosa + Alu Curry Sagu Punjabi Chole + Paratha Paratha Alu Bhaji + Paratha Vada Ajowan Paratha Lachha Paratha Nawabi Paratha Rava Idli + Potato Palak Paneer +

Ice Creams MTR Ice Creams are known for their delicious creamy taste, innovative flavours and value-for-money prices. Available at kiosks, stores and Namma MTRs, they are a long-standing favourite with all age-groups Aamras Chocolate Drink Harbal Drink Badam Drink Health Drink Thandai

Vermicelli MTR vermicelli is made with a special process that ensures it is non sticky and does not form lumps. Choose from short cut, long cut or roasted vermicelli. one can use MTR vermicelli in so many marvelous ways. Make creamy sweet kheer, savoury upma or toss it with boiled vegetables for a wholesome pulao.

KEY CHALLENGES BEFORE READY TO EAT FOOD SECTOR

There has been an increase in Indian consumers'' awareness of long term health issues associated with an irregular diet and fast food consumption. Ensuring and communicating freshness, and offering more convenient product concepts should be the areas of focus for RTE manufacturers in India. Indians are taking more interest in taking control of their personal health than ever before, there is a renewed interest in reading information related to health and wellness. Detailed and descriptive nutritional information on product packaging is vital in gaining the consumers'' trust. More than half of Indians across all age groups are highly influenced by ''better for you'' claims while making food and beverage choices. RTE foods should be reformulated to contain low fat and low cholesterol. Food and beverages marketed with ''Freshness'' claims have more influence on consumers, compared to ''Authentic/homemade/original'' or even ''No artificial additives''. Traditionally, Indians have long

Samosa Rice Idli Alu Paratha Plain Paratha Methi Muttar Paratha

Instant Sweet Mixes MTR Instant Sweet Mixes are a delightful and easy way to make the most mouthwatering delicacies at home. Whether it is a special occasion or just a regular meal, follow the simple step-by-step instructions on the pack and sweeten your family's day Gulab Jamun Badam Feast Vermicelli Payasam

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International Journal of Management and Social Sciences Research (IJMSSR) Volume 2, No. 5, May 2013

ISSN: 2319-4421

67

believed in the benefits of consuming freshly prepared food at home. Removing the scepticism surrounding the freshness of RTE foods. A common element across all the current brands in the market today is that most of them produce vegetarian meals. People need greater variety of popular international cuisines.

Educate the customer or adopt strategies for changing customers perceptions like RTE foods contents high fat and calorie, used Genetically Modified Foods, vitamins are lost due used of heat processing and Preservatives.

CONCLUSION
There is a rise in the demand for foods based of traditional Indian and International recipes across different states in India and abroad, manufactures need to introduce great verities in their menus. There is a need to expanding their reach in small metro and cities to increase their sell to reduce the cost. Thus, looking at the opportunities and challenges, which markets offer to the manufacturers of Ready to Eat & Ready to Cook sector, it can be said that the future is very promising for those who can understand the dynamics of the markets and make use of them to their best advantage.

SUGGESTIONS
Introduce RTE salads targeted at the health conscious. Explore meal combinations of rice/bread and curries. Offer RTE foods in packaging formats that allow for direct consumption from the container. Introduce greater variety of Canned ready meals, Chilled ready meals, Frozen ready meals, Dried ready meals. Ensuring that the meat product does not spoil. As the current popular sterilisation methods are not ideal for meat. Government should provide relaxation on excise tax particularly in Non vegetarian foods. Since technology and packaging costs are high, all the current players, instead of being present in few, mainly metropolitan markets, need to look at expanding their reach in cities with a population of over one million, which will help bring down prices indirectly.

BIBLIOGRAPHY
[1] http://www.hindu.com/2007/10/24/stories/20071024 54651900.htm [2] http://www.mtrfoods.com [3] http://www.garamchai.com/ReadyToEat.htm [4] Rahman Tazyn ( 2012 ), INDIAN EHTHNIC RTE - A REVOLUTION FOR THE INDIAN PROCESSED FOOD INDUSTRY. [5] http://www.bharatbook.com/market-researchreports/food-market-research-report/ready-to-eatmarket-in-india-2010.html

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