Maggi may lose out on the glory of being a Rs 2,000 crore brand

Nestle India’s Maggi might have to see some more downfall. The instant-noodles, which is badly affected due to lead and MSG controversy, may also lose Rs 2,000 crore brand tag this year.

There are handful of brands in FMCG industry that have reached Rs 2,000 crore mark and Maggi noodles had even crossed it a few years back.

But due to the recent controversy, Maggi could slip from the club and the negative image attached to the brand is having a rub-off effect on other Maggi products as well.

Economic Times reported that the Rs 2k crore club was growing stronger with the inclusion of Lifebuoy, an over 100 year old brand, Surf, Wheel and Rin from Hindustan Unilever (HUL), Aashirvaad and Sunfeast from ITC, Tide from Procter & Gamble (P&G) and Amul Butter.

Other brands that fall in the Rs 2,000 crore bracket include Horlicks, Fair & Lovely, Colgate, Ghari, Cadbury Dairy Milk, Thums Up and Sprite, among others.

A senior analyst from an Indian brokerage house told the financial daily that the high-consumption categories, the percentage spend of the consumer's wallet and competitiveness determines the size of the brand.

For instance, ITC is a big brand in cigarettes as it has a dominant presence; diary, on the other hand, is a huge-consumption category. “Amul Butter, which is a dominant brand in the category, has become a Rs 2,000 crore brand this year. Its impactful advertising, where the spend is minimal (less than 1% of turnover), has helped the brand in achieving this milestone,'' R S Sodhi, MD, Gujarat Cooperative Milk Marketing Federation, which markets Amul told ET.

Even Maggi was for the longest period, the only player in the category. “For some brands it is very easy to touch Rs 2,000 crore or Rs 5,000 crore sales because of the category they are present in,'' the analyst told ET on the condition of anonymity.

Maggi will certainly have to do rigorous campaigning to regain its lost ground in the country and past glory.

(Image: Indiatimes)