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KOLKATA: This bit of news from Pakistan is happy — and spicy. And the Pakistani export that's making news can be fiery, but in an altogether pleasurable way. Shan, a Pakistani blended spices brand, is sweeping aside competition from India-made branded masala, and has emerged as one of the kitchen favourites. Market estimates for major North Indian centres show Shan commanding 50% of sales in the category of blended spices used in non-vegetarian cooking.
And this Pakistani brand hasn't even launched any major marketing campaign in India. Such is the star power of this Pakistani export on Indian shop shelves, desi FMCG major ITCBSE 1.35 % is now seriously considering entering the branded spices segment that caters to non-vegetarian cooking. And long-established spice biggies like Everest are feeling the heat.
Shan's best-sellers in India are those that pack a punch in rich, sub-continental non-vegetarian cooking. Spices for shahi haleem mix, Bombay Biryani, chappli kebab mix, Lahori fish and nihari are some of Shan's products that have found their way into Indian kitchens. Shan Foods, founded in 1981 in Karachi started as a one-room/family spices recipe/small orders business. It now sells spices in 65 countries and founder and chief executive Sikander Sultan is considered the guru of Pakistan's packaged food industry.
Sultan told ET he has bigger plans for India. "We are leading in the non-vegetarian segment in India
in select pockets, but we want to expand now since in some geographies like South where we have no presence," Sultan said. The Rs 11,000-crore packaged spices market in India is split equally between blended and pure spices and accommodates 1,200 brands. Everest and MDH are the desi kings of the blended spices category. And now there's Pakistan's Shan. Shan's 2004 entry in India was quiet and its distribution chain — meat shops and small mughlai spice stores — was humble. But slowly and surely customers and big retail both got interested.
Shan's spices are now on shop shelves of big retail and available through Amazon India. Retail major Future Group CEO (foods business) DevendraChawla said Shan has created its brand pull due to unique taste offering. "A wider distribution can lead to much bigger reach and more sales for Shan," he said. ITC's divisional chief executive (foods) Chitranjan Dar said his company has just launched Sambhar and Rasam in Tamil Nadu and will look at regional blended spices, including non-vegetarian varieties popular in the North.
Shan's success, he said, is relevant in these calculations. Everest Spices director Sanjeev Shah said Shan has built a huge brand presence in spices used in non-vegetarian cooking. "While Shan is still small in the overall packaged spice market in India, we are going to be vigilant since brands like Shan are expanding and brands with deeper pockets like ITC and Nestle are going to focus more on this segment," Shah said.
Shan's CEO Sultan, happy as he is over his products India success, says he has no plans to manufacture in India but he also admits customs duty applicable on branded spices means a retail price disadvantage. Shan's price range — Rs 60-Rs 70 — is higher than Everest's - Rs 20- Rs50. Indian trade partners of Shan told ET the Pakistani company wants to grow aggressively in India, including setting-up a subsidiary here
expand into the bigger market of blended spices for vegetarian cooking as well as ready-to-eat desserts and cooking sauces. This story from Pakistan may yet get happier and spicier.
Pakistan's Shan Spices taste success in India - The Economic Times
And this Pakistani brand hasn't even launched any major marketing campaign in India. Such is the star power of this Pakistani export on Indian shop shelves, desi FMCG major ITCBSE 1.35 % is now seriously considering entering the branded spices segment that caters to non-vegetarian cooking. And long-established spice biggies like Everest are feeling the heat.
Shan's best-sellers in India are those that pack a punch in rich, sub-continental non-vegetarian cooking. Spices for shahi haleem mix, Bombay Biryani, chappli kebab mix, Lahori fish and nihari are some of Shan's products that have found their way into Indian kitchens. Shan Foods, founded in 1981 in Karachi started as a one-room/family spices recipe/small orders business. It now sells spices in 65 countries and founder and chief executive Sikander Sultan is considered the guru of Pakistan's packaged food industry.
Sultan told ET he has bigger plans for India. "We are leading in the non-vegetarian segment in India
in select pockets, but we want to expand now since in some geographies like South where we have no presence," Sultan said. The Rs 11,000-crore packaged spices market in India is split equally between blended and pure spices and accommodates 1,200 brands. Everest and MDH are the desi kings of the blended spices category. And now there's Pakistan's Shan. Shan's 2004 entry in India was quiet and its distribution chain — meat shops and small mughlai spice stores — was humble. But slowly and surely customers and big retail both got interested.
Shan's spices are now on shop shelves of big retail and available through Amazon India. Retail major Future Group CEO (foods business) DevendraChawla said Shan has created its brand pull due to unique taste offering. "A wider distribution can lead to much bigger reach and more sales for Shan," he said. ITC's divisional chief executive (foods) Chitranjan Dar said his company has just launched Sambhar and Rasam in Tamil Nadu and will look at regional blended spices, including non-vegetarian varieties popular in the North.
Shan's success, he said, is relevant in these calculations. Everest Spices director Sanjeev Shah said Shan has built a huge brand presence in spices used in non-vegetarian cooking. "While Shan is still small in the overall packaged spice market in India, we are going to be vigilant since brands like Shan are expanding and brands with deeper pockets like ITC and Nestle are going to focus more on this segment," Shah said.
Shan's CEO Sultan, happy as he is over his products India success, says he has no plans to manufacture in India but he also admits customs duty applicable on branded spices means a retail price disadvantage. Shan's price range — Rs 60-Rs 70 — is higher than Everest's - Rs 20- Rs50. Indian trade partners of Shan told ET the Pakistani company wants to grow aggressively in India, including setting-up a subsidiary here
expand into the bigger market of blended spices for vegetarian cooking as well as ready-to-eat desserts and cooking sauces. This story from Pakistan may yet get happier and spicier.
Pakistan's Shan Spices taste success in India - The Economic Times
