Kuok set to enter packaged food fray by year-end

The Singapore-based Kuok Group is gearing up to enter the Indian market with a slew of food brands, ranging from edible oils and milk products to biscuits, flour, packaged water, sugar and beverages.

The company has already registered three brands -- Simply, K and Blue Team -- in India through its subsidiary Kuok Oils and Grains. The brands are expected to be launched at year-end. Kuok's entry could alter market dynamics for other global players in India, such as Cargill, Bunge, and Archer Daniel Midlands, struggling to gain a foothold in the Indian packaged foods market. At present, 50 per cent of share in branded edible oils is held by Adani Wilmar's Fortune, Parakh Foods' Gemini, Goldwinner, and Agro Tech Foods' Sundrop. Analysts believe the entry of Kuok will immediately impact the plans of the existing new players who have yet to establish a rapport and loyalty system with consumers. "Since there is no serious cost advantage available to any player, even with captive refining capacity, and entry barriers are low, ultimately brand building will make the final difference," said one analyst.

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