Tata Salt has retained its edge in the branded salt market thanks to its outstanding quality and Tata Chemicals' well-oiled distribution network

As a pioneer in the packaged salt industry, Tata Salt secured first-mover advantage in the market. It has sustained this advantage through outstanding product quality and a well-oiled distribution network. This has helped Tata Chemicals ensure that its brand has the highest top-of-mind awareness among consumers.

During the 1990s, when the growth potential in the packaged salt market attracted new players, including a couple of large companies, some observers thought Tata Salt would take a hit. It hasn't. The brand has actually grown in value and volume. Produced through the vacuum-evaporated process, Tata Salt is iodised, packed in 1-kg and 0.5-kg laminate pouches and distributed across the country through a widespread packing-centre network.

When Tata Chemicals introduced India's first iodised salt, the awareness of its importance to health was very low and the market was dominated by local brands and loose crystal and powder salt. Even today, national brands account for just 15 per cent of the total market.

However, growing awareness of health and hygiene issues and increasing prosperity have boosted the demand for branded, iodised salt. In this scenario, Tata Salt is the best placed brand. And it retains around 36 per cent share of the national branded salt market despite the entry of new players.

DCW's Captain Cook was launched in 1991, and Hindustan Lever's Annapurna was launched in 1994. DCW was subsequently acquired by International Bestfoods, which, in turn, was acquired by Unilever. These developments have led to Annapurna becoming Tata Salt's main national-level competitor.

Tata Chemicals has created a dealer penetration level that is hard to match. For instance, the per dealer offtake of Tata Salt is 18 per cent higher than Annapurna's. There are some other players in the market, too, such as Marico's Saffola, a niche, 'low-sodium' brand, Nirma's Shudh, which is yet to be launched across India, and Dandi. But, despite the entry of these new players, Tata Salt continues to be the top-selling salt brand in the country.

The overall market for branded salt is growing rapidly as consumers become more aware of health and quality issues. Tata Chemicals is gearing itself to meet this growing demand and stay at the top. To ensure that its sales grow at a sustained rate that is higher than the overall rate of growth of the market, the company is leveraging its strengths: premium quality and brand equity.

The company is also looking at improving its distribution network, besides exploring avenues to expand its portfolio in the branded salts segment. Clearly, the road ahead for Tata Salt is paved with possibilities for improvement.