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Kissan Vs Maggi: A Comparative Analysis of FMCG Leaders

Created on 25 Aug 2023

Wraps up in 9 Min

Read by 269 people

Updated on 09 Nov 2024

HUL vs. Nestle: Comparing India’s FMCG Powerhouses

As the clock strikes 6:00 PM, many of us crave a light yet satisfying snack. Samosas, Fries, Chips, or Noodles are the choice of snacks most people usually go for to satiate this “twilight hunger”. While people have different taste preferences, one thing is universal: the need for a condiment that goes well with snacks. For most people, the scale of favour dips towards tomato sauce.

Now, tomato has been a well-heated topic in India for the past few months due to the price hike. The jump from 20/kg to 140/kg was unexpected and troublesome. This piqued my interest in learning about this red-juicy vegetable from a slightly different angle. So, today, I'll take you on a journey through the history of two of India's top ketchup brands, Kissan and Maggi. We'll explore how these two household names came to be rivals, as well as the story of the foreign competitor who tried to challenge them but was defeated nonetheless.

Tomato sauce, or plain sauce (as it is called in India), this condiment has defeated many to be the public's evergreen choice. It is a key ingredient in many dishes, and it can also be enjoyed on its own. While tomatoes were not always the main ingredient in the sauce, they have since become the most popular choice. So, as per historical records, tomatoes were first used to prepare condiments in 1812. Today, the ketchup market in the world is estimated to be around $21.4 billion, which is over ₹1,700 crore. With a CAGR of 3.2%, the market is expected to grow globally.

Today, the ketchup market in the world is estimated to be around $21.4 billion, which is over ₹1,700 crore. With a CAGR of 3.2%, the market is expected to grow globally.
Global Ketchup Market Size

The ketchup market in India is largely divided between two brands, HUL’s Kissan and Nestle’s Maggi. The ketchup & jam section, along with squashes and soft drinks concentrates, is dominated by these two players in India. But you know what the most interesting part of this feud is? Both these leaders in the Indian market are not even Indian! That’s right! Hindustan Unilever Limited is not a “Hindustani” company, and Nestle is a Swiss company.

So, both of these brands are foreign-owned, which is surprising given that India is the second-largest producer of tomatoes. In FY23, India produced around 20 million metric tonnes of tomatoes, and this number is estimated to reach 22.5 million metric tonnes by 2026. Around 20% of these tomatoes are utilised to prepare tomato ketchup, puree, paste, pickles, etc.

There are other brands present as well, apart from Maggi and Kissan in the ketchup industry, like Tops, Heinz, and more, but no one has been able to replace either one of these till now. Before we go ahead with overviewing the ongoing competition between the two brands, let’s take a brief look at how they came to India and what tactics they adhere to.

HUL's Kissan: An Indian Brand Controlled by Foreign Flag

Enter Kissanpur: A marketing masterpiece that made Kissan the household name for ketchup in India.

Whether you are a millennial or a Gen-Z, you must remember those colourful ads of Kissan featuring a hard-working farmer who collects fruits and tomatoes to make fresh ketchup and jam. The animated cinematography and inspiring storyline worked perfectly in Kissan’s flavour, I mean favour, appealing to both kids and parents. Kids were also learning a moral lesson while watching those ads. This marketing strategy was a stroke of genius, as it penetrated the minds and hearts of parents and children alike.

Very similar to Kissan, another foreign brand was able to dominate the Indian market with its exceptional marketing strategies and right audience targeting skills. It's Colgate!
 
Check out Colgate's story and how it became an addiction for Indian consumers.
 

The name Kissan is a dead giveaway. It means "farmer" in Hindi, and the brand has always positioned itself as a brand that is for and by farmers. The history of Kissan’s establishment is very interesting as well.
Kissan, the brand older than independent India, was originally a small processing plant established by Britishers in 1935. It was situated near a train halt point in Punjab, selling processed fruits and vegetables. The place came to be called “Kissan” due to it being a selling point for farmers, and the business adopted the name.

 The place came to be called “Kissan” due to it being a selling point for farmers, and the business adopted the name.

In 1950, the United Breweries Group, owned by the Late Vittal Mallya, acquired Kissan from Mitchell Bros. Later, in 1993, Kissan was again acquired by Hindustan Unilever Limited (HUL) via Brooke Bond. The arrival of HUL in India and its formation are also a series of partnerships and acquisitions. Check out the infographic below on HUL and, in turn, Kissan's establishment.

Want to know about HUL in depth? Read the full article by clicking on the link - HUL's Strategic Acquisitions