Surya Food and Agro Pvt. Ltd. had entered the market in 1992 when it launched the Priyagold brand of biscuits. According to S S Chauhan, area sales manager, in the last few years, Priyagold has been able to make its presence felt in the market and the demand for it has consistently increased. "In Calcutta, we have captured 15 per cent of the market and we are expecting a similar response in other states."Biscuits manufactured by Surya Food are also being exported to Abu Dhabi and the CIS countries. Namkeens have also been launched by the company and Chauhan is hopeful of its success.

Chauhan says that the secret behind Surya Foods' success is the maintenance of consistent quality and stress on nutritional value. Only those ingredients whose purity have been tried and tested in the laboratory are used to make the biscuits. "We strictly go according to ISI specifications." Another person, who lays a strong emphasis on quality and nutrition, is Gopal K Daruka, the man behind Fun Flips, the lightly flavoured crisp puffs which stormed the northern market in 1986. Made of rice and moong dal, Daruka says that his product is full of nutrition unlike potato chips. "Fun Flips contains only 6 per cent fat while the fat content in potato chips can cross 40 per cent."

The business was started by Daruka with a small capital amounting to less than a lakh of rupees. It was only the will to provide the customer with thebest quality product at the least possible price which helped him succeed. Says Daruka, "In the last 5 years, I have not increased the price of my product at all." But how has he managed to do so when the price of other products have been rising steadily? It's simple, says Daruka. "I have expanded my production and have let the customers have the benefit of economy of scale." Daruka has so far faced no competition, whether domestic or international. Multinationals, which have entered the chips market in a big way, could not succeed in challenging the market occupied by Fun Flips. Daruka says that Pepsi has tried several times to launch a parallel product under the brand name Cheetos but it has failed every time. "I will call it God's grace that I am sailing so smoothly."

Amit Khandelwal of Gupta Food Products, a namkeen manufacturing company in Dehradun feels that it is not only God's grace but the inability of the MNCs to reproduce the typical Indian taste which is leading to their failure. "When a bigcompany like Haldiram's does not feel threatened by the multinationals then what do small players like us who mostly cater to only a few states have to fear about?"

Started in 1968, Gupta Foods produces as many as 60 different varieties of namkeens and has created a strong base in Uttar Pradesh and Himachal Pradesh. The next destination is Delhi.

Khandelwal says that tastes differ from one state to another and it is an important aspect to consider. "We have to see what taste the Delhiites prefer and launch our product accordingly."

Gupta Foods exports its products to Australia and Denmark. Khandelwal says that the demand for namkeens is rising steadily both in India and abroad. "Brand name does not make much of a difference. The only thing which matters is quality."

Kishalay Ghosh of Bikanervala Foods Pvt. Ltd. agrees. After collaborating with Pepsi Foods, the company has launched its sweets and namkeens under the brand name Bikano. Ghosh feels that while the collaboration has given the company'simage a boost in the cities, in small outlets it has not made much difference. "In small towns and villages, people don't understand what Pepsi is. They buy a product only if they find it good to eat."

Ghosh says that the change in the life style of Indians has given a major boost to the snacks industry. The busy life style does not permit individuals to spend time in the kitchen preparing snacks for guests. "It is much easier to empty biscuits and namkeen packets into plates and serve them immediately," explains Ghosh.

However, it is important to keep the cost consideration in mind. It is not wise to keep prices too high as this might make the company lose its middle class consumers who form the major chunk of buyers. This fact is well understood by Rajiv Desai of Strategic Food International Co. a biscuit manufacturing company in Dubai. Targetting the middle class and the upmarket sector in India, the price of the biscuits range from Rs 4 upwards. "We have biscuits to suit all pockets."

In the threeyears of its existence, Strategic Food has exported its products to about 57 countries around the world. "I think our products will click in India too." According to Desai, good packaging of the product is also essential for its success. "A product should look attractive enough for consumers to reach for it."

Chauhan feels that besides being attractive, packaging should also take care of hygiene. "We have started shrink packaging our products which make them tamper-proof."

Khandelwal says that though packaging is an important aspect the success of the product ultimately depends on the quality. "You might mesmerise a buyer with an attractive packet the first time. But if your product is not good he will not go for it the second time."

India is a burgeoning market for the biscuit and namkeen industry. It now depends on the businessmen how they utilise the opportunities offered and exploit it to their advantage.