The quick commerce channel currently brings in high-single-digit percentage sales in segments such as “indulgence and impulse”, Chief Commercial Officer Vipin Kataria said in a post-earnings call on Wednesday.
Sales in the segment, comprises sweet treats such as cakes, croissants and wafers, are expected to climb up to the high tweens to high teens percentages in fiscal 2027, according to Kataria.
India’s quick-commerce market, which promises to deliver everything from iPhones to milk in minutes, has rapidly grown in the last few years as consumers in the world’s most populous country court convenience. This has also led to a shift in strategy for consumer firms.
We are looking to add more digital-first brands to drive quick-commerce growth, which is expected to be margin accretive, CEO Rakshit Hargave said, adding that the company plans to increase its investments in its quick-commerce unit.
The packaged foods firm posted a 17% rise in third-quarter profit on Tuesday, driven by price hikes and tax cuts. Its stock closed 2.3% higher on the day.
E-commerce is also a major driver for the “indulgence and impulse” category, and the company plans to focus on the channel as a business unit in itself.Online delivery platforms contributed three times more to sales in cakes, rusks, croissants and wafers in the December quarter, compared to its mainstay biscuits portfolio, the company said.
“Going forward, an omnichannel approach, very strong price points, pushing back competition and increased investments will drive growth,” he said.
