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Gits Case Study- Pioneers in Packaged Food Segment

Gits Food is a legacy in the convenience packaged food segment in India. Established in 1963, Gits pioneered the packaged food segment by being the first company to introduce the concept of Instant Mixes in India. Gits are not just the pioneers in introducing pre-packaged foods but are also amongst the first Food Product manufacturing companies in India to obtain ISO 9001 – 2008 (Quality Standard) ISO 22000 (Food safety).

Gits Food is a legacy in the convenience packaged food segment in India. Established in 1963, Gits pioneered the packaged food segment by being the first company to introduce the concept of Instant Mixes in India. Gits are not just the pioneers in introducing pre-packaged foods but are also amongst the first Food Product manufacturing companies in India to obtain ISO 9001 – 2008 (Quality Standard) ISO 22000 (Food safety).

Gits offers the World’s widest range of Indian flavours and delicacies fascinating in their diversity through their ready meals and instant mixes. The unparalleled taste of Indian food is imparted by spices and seasonings unique only to India. These vary from aromatic “Curry leaves” to the exotic nutmeg.

In February 2019, India-based convenience food maker, Gits Food Products Pvt. Ltd. (Gits), announced that it intended to achieve double-digit revenue growth in FY 2020. The company aimed to bring about an increase in revenue through new product launches and business strategies implemented in FY19. Sahil Gilani (Sahil), Director, Sales and Marketing, Gits, said, “There are a lot of exciting new products as well as business strategies being implemented this year. Hence we are certain that our growth rates will only get better each year on.”

Two friends, HZ Gilani and AK Tejani, together founded GITS. Their objective was to provide labour-free and time-saving mixes made from natural ingredients. They named the brand ‘Gits’, derived from ‘Gilani’ and ‘Tejani’, the founder’s last names.

GITS: Preserving without preservatives

Instant Mixes use natural ingredients such as rice, lentils, milk powder etc. For example, an Idli mix uses two primary ingredients – rice and dal, in its preparation. Then, we take them in their natural form, pulverize into a fine powder and mix in appropriate proportions. There is nothing artificial in the batter as rice and dal do not spoil in their naturally dry form. Further, the mix uses pouches with high barrier properties.

Ready Meals / RTE products are fully cooked and preserved by using Retort Technology – a process where the products are hot-filled in laminated multi-layered aluminium foil pouches, able to withstand thermal processing temperature in excess of 100 degrees celsius at the specified pressure required for sterilization. The pouches are sealed so no new air enters the pouch. Whereas the terilization ensures the air inside the pouch is free of bacteria that would spoil the food.

The Gits family does not take Corporate Social Responsibility just as a term. They work very hard and put endless efforts to make it a reality and extend their concern wherever needed.

Their mission is to become a model corporate citizen and actively translated on the ground by initiatives especially established to implement programs in the field of education, healthcare, water, social welfare, infrastructure development and income generation.

At Gits, their initiatives include partnering NGOs and Government departments to improve the quality and reach of our charitable activities. Our interventions have radically changed the way of life for thousands of people and their families across India.

They have helped children in Jammu & Kashmir who were orphaned due to the on-going militancy by giving them care and education. Gits has contributed to a variety of special causes from time to time. Their efforts to conserve the environment have been constant and honest.

Exploring new avenues-GITS

In 2014, Gits entered a niche market in the RTE food market through its innovative offering in the RTE segment, ‘No Onion No Garlic Ready Meals’. It was the first Indian company to tap into that segment. Sahil added, “Communities that do not eat Onion & Garlic have an even harder time eating abroad hence these products will cater to this niche consumer need. Consumers demanded these products hence we are delivering to their requests.” In 2016, Gits re-designed its products to better serve its existing customers and to target new customers. The company started supplying its RTE packs on some Indian trains. Later, it came up with a combo meal pack comprising rice and dal to cater to train passengers.

Surmounting the challenges

Gits gave immense importance to the source and quality of its ingredients. It claimed that its key operational challenge was getting access to quality raw materials. The company observed that between manufacturer and farmers, there was a multitude of middlemen and perplexing supply chain levels that made it difficult to get the right quality of raw materials from the farms. It thought that the creation of a direct connection between food product manufacturers and farmers, apart from a strong supply chain, would ease its operational challenges.

Company turnover

Gits Food Products operating revenues range is INR 100 cr – 500 cr for the financial year ending on 31st March 2019. It’s EBITDA has increased by 2.14 % over the previous year. At the same time, it’s book net worth has increased by 27.40 %.

An advertisement promoting wholesome breakfast mixes, by GITS:

A report mentioned how made a comeback with new, ‘healthy’ product. They witnessed a drop in sales post demonetisation in 2016 and the rollout of GST in 2017, got a rebound in business with the release of these healthy, wholesome breakfast mixes.

As of 2019, Gits had nearly 400 different products, with the Gulab Jamun instant mix being its most successful product. It has a diverse product portfolio, covering various categories such as instant mixes (breakfast, snacks, and dessert mixes), ready meals, and dairy. The company had a pan India presence, with a network of over 20 warehouses/depots across states and more than 1,000 distributors catering to the traditional and modern retail formats. The company’s strongest markets were in the west on India (Maharashtra & Gujarat). Furthermore, it had a strategy to not just concentrate on metros and Tier I towns but to penetrate Tier III towns and rural areas.

Products

Ready Meals

  • Veg Biryani (No onion/ No Garlic)
  • Pav Bhaji (No onion/ No Garlic)
  • Masala Rice
  • Veg Pulao
  • Palak Paneer
  • Basmati Rice 190gm + Rajma Masala 185gm

Dairy

  • Cow Ghee Jar
  • Gits Cow Ghee Pack
  • Dairy Mate (Dairy Whitener)

Open and Eat

  • Gulab Jamun- Open and Eat
  • Rasgulla Tin – Open and Eat

Instant Mixes

  • Rice Idli
  • Dosa
  • Khaman Dhokla
  • Meduvada
  • Upma
  • Basmati Rice Kheer
  • Vermicelli Kheer
  • Jalebi with maker

The road ahead

As of 2019, Gits had nearly 400 different products, with the Gulab Jamun instant mix being its most successful product. It had a diverse product portfolio, which was divided into categories such as instant mixes (breakfast, snacks, and dessert mixes), ready meals, and dairy. The company had a pan India presence, with a network of over 20 warehouses/depots across states and more than 1,000 distributors catering to the traditional and modern retail formats. The company’s strongest markets were in the west on India (Maharashtra & Gujarat). Furthermore, it had a strategy to not just concentrate on metros and Tier I towns, but to penetrate Tier III towns and rural areas…

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