After building a ₹1,400-crore business around ghee over 42 years, GRB Dairy Foods Pvt. Ltd. is now pivoting toward value-added dairy and adjacent categories as rising competition and shifting consumer demand reshape India’s FMCG landscape.
The Bengaluru-based company plans to enter segments such as paneer and other dairy products by the end of 2026, while continuing to expand its presence in snacks, sweets, and spices, highlighting the challenge legacy single-product brands face in scaling beyond their core identity without diluting brand recall. (mint)
The company’s diversification strategy includes launching new products under separate brands after earlier attempts to scale non-ghee categories under the GRB label failed, with chairman G.R. Balasubramaniam noting that consumers strongly associate the brand with ghee.
Its non-ghee portfolio—including snacks, sweets, and masalas—already contributes around 30% of total revenues and is expected to act as a second growth engine, supported by improved milk procurement and a stronger cold-chain infrastructure. (mint)
GRB’s renewed push into dairy also marks a return to a segment it previously struggled to scale, such as ice cream, which was discontinued after 10–12 years due to infrastructure gaps and seasonal demand challenges.
With backend supply chains now strengthening, the company is taking a more measured approach—prioritizing procurement and cold-chain readiness before launching new dairy products. (mint)
The move comes amid intensifying competition from value-added dairy players like Milky Mist Dairy Food Ltd., which has grown into a ₹2,350-crore business in FY25 and is preparing for an IPO, underscoring the shift toward premiumisation and diversification.
At the same time, rising adulteration concerns in staples such as milk, ghee, and khoya—reported to have increased 2.5 times since 2018—are reshaping consumer trust and pushing companies to invest in testing, quality assurance, and consumer education. (mint)
Source: Dairynews7x7 15 March, 2026 Read full story here
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