The report details how regional brands such as Balaji Wafers, Prataap Snacks, Bikanervala, Bikaji Foods and DFM foods have recorded sales growth of between 8 and 35% during the year ending March 2016.
Between 2013 and 2015, market leader Lay's lost share from 51.1% to 49.5% with Pepsi-Co's food division having grown a relatively small 4%.
Earlier, a 2014 report by ratings agency Crisil Ltd had also stated that these packaged food firms could grown twice as fast as their multinational corporations rivals such as PepsiCo by 2020 in this segment.
Forbes Reports, "One of the reasons for this drop in Pepsico’s share is that Indian consumers have had a lukewarm response to international flavors such as French Salt & Cracked Pepper, Chile Lemon, Caribbean Hot & Sweet Chilli and Spanish Tomato, which Lay’s had launched in order to differentiate itself in the crowded market.
"Homegrown companies like Haldirams, known for their “Aloo Bhujia” and “Bhujia Sev,” have become household names by catering to the Indian palate. These savories were earlier bought from traditional sweet shops and were consumed at tea time in many parts of the country.
"Haldirams and other local businesses now provide them in a packaged form. These regional brands have focused on local flavors that suit Indians' palates. "We began our company by selling ‘desi farsan’ nearly three decades ago but consumers gradually moved to products such as wafers. Now, they still want chips but with Indian masala," said Chandu Virani, promoter of Balaji Wafers.