Aa ch i M as ala - En ter ing

th e N or th In dia n Ma so/ a
Ca teg or y (¼~t\,V\s,0
, • , ,. ~ ~ i l \ ' 1 1 .:~ - ,ifffl~i m:li~'E JE!l!,'3
i~~~ ~ ! £'Z;;I,,t;; ·, · ·,

-bran d congl omer ate, has enter ed th e

Aachi Group, the South India n multi -prod uct, multi
Aach i Masa la, the powe r brand o f
highly comp etitiv e North India n masala (spice s) segm ent.
ern belt for its South India n range ot
che group, has becom e a house hold name in the south
man and Mana ging Direc tor (CMD )
masaias . Creat ed by Mr. A.O. Padm asing h Isaac, the Chair
es old and has gradu ally grow n from
of Aachi Group , this group is now more than two decad
s a consi derab le mind share in South
being just a masala brand to an FMC G comp any and enjoy
foray ed into North India n masal a range
India, espec ially in Tamil Nadu . In 2015, Aach i Masa la
ering if the brand , whic h has predo mi-
as a part of its expan sion strate gy. Mr. Isaac was wond
able to earn and enjoy a simil ar posit ion
nantly been cateri ng to South India n taste buds, will be
with its North India n versio ns.

i ► THE INDU STR Y AT A GLA NCE

I The food proce ssing indus try of India (Exh ibit 1 ).,
accou nts for more than 32% of the tot a l
th
al grow th rate of 11 %. 1, 2 It is ranke d 5
food marke t of India and is grow ing at an avera ge annu
nts for 14% of India 's GDP and 13 %
in terms of produ ction , consu mptio n, and expor ts. It accou
3 try (CII) estim ate, the food proce ssing
_of toca~ expor ts. As per Conf edera tion of India n Indus
indus tries have the poten tial to attrac t more than
US$ 3 3 billio n of inves tmen t over the next
10 years. 4
The sector is prima rily divid ed into three broad segm ents.
5

1. Pr_imar~ food_ proce ssing comp rising sortin g, gra~i ng and packa ging of fruits and veoec ables
0 '
milk, nee, spice s, etc.
. . d
2. Secon dary proce ssing of food comp rising of food re-sh aped for ease of consu mptio n me 1u es
f
fl our, 01·1 ca 1<es, tea 1ea , and bever ages powd er. -··

ent includ es proc d f . d

3. Tertiary proce ssing of food (or) v,tlue -adde d food segm esse ruits an vege -
1c1bles, juices, jam and jelly, etc.
th an 6O0 ·
The prim My and secon dary segm ents accou nts for more ~1 proce ssed foods in valu e
holds aroun d 400c 1/o
terms and the value -adde d food segm ent 1/o share m the total proce ssed food
market.
 I 1/
·.·v,~.2 Case 15
I'/
' ,Jy
•-=---------- --------------
. ► AACHI GROUP
!:JI

Aachi Group was esta~lished in the year 1995 by Mr. A.O. Padmasingh Isaac, a first generation c.-~--
entrepreneur hailing from Nazareth in Tirunelveli District of Tamil Nadu. After a stint in Godrej
in sales and marketing positions, Mr. Isaac's entrepreneurial journey began with liquid blue brand, · ·-
Twinkle. He launched it in pocket-friendly sachets catering majorly to the semi-urban and rural
markets in Tamil Nadu.
Mr. Isaac attributes the idea of Aachi Masala to his mother Mrs. Flora and his wife Mrs. Thelma,
whose cooking skills, especially the use of masalas inspired him to venture into this business. 6 Mak- ,,, .
ing women's work easy was also another inspiration behind the idea of Aachi, as per the company
website. 7 ·
Aachi products are sold in more than twenty-five states in India. The brand has nearly 200 prod-
ucts with over 700 Stock Keeping Units (SKUs) as in the beginning of 2016. 8 The total employee
strength of the group is in excess of 20,000. Latest company sources indicate that Aachi Group is
growing at a CAGR of 30%• over the last three years, which is higher than that of the industry aver-
age. The company is eyeing a turnover of l 1200 crores for the year 2017-18. Over the years, Aachi
group and Mr. Isaac have won many awards and accolades.

► ALL IN THE FAMILY

Aachi group is a family-owned undertaking. While Mr. Isaac steers the group as its CMD, his sons -
Mr. Ashwin Pandian and Mr. Abhishek Abraham also play important roles in the management.of
the organization.
The Aachi Group comprises of the following companies
• Aachi Masala Foods Private Ltd - The parent company selling its core products, masalas 9
• Aachi ·s pices & Foods Pvt Ltd - Division that concentrates on ground spices and food products
• Aachi Special Foods Pvt Ltd- Newly launched; includes packaged drinking water
Brands under Aachi Group:
Aachi Masala: The core brand comprising a gamut of packed ground spices.
Twin Birds: a special product for non-vegetarian pickle and curry items
Frispoo: The snack range
Twinkle: The home cleaning range
Tanjus: The bottled fruit juice range
Aachi packaged drinking water
Ponnii: a range of edible vegetable oil
Sabash: Herbal cosmetic brand
Blesso: Cough syrup
 Aachl Masala - Entering .the North Indian Masala Category. rj :.·:, '.'.. ii· ,
li ·1 ,··.-·
1

' L11
► AACHI MASALA DIVISION . '·.,fl
• d f A h. Despite being a failure during
The Aachi Kulambu Chilli Powder is th e flagship pro uct O a~ . 1. ently one of those products
the early phases of the product launch, the product picked up an is curr
that keeps the cash registers ringing for the company. . . l d t The portfolio includes
Red chilli is the main ingredient in most of the Aachi Masa a pro uc s. . h b
· d · s th Indian recipes sue as sam ar,
blended masalas for generic vegetarian an non-vegetanan ou . . .
rasam, biriyani, vathal kuzhambu, tamarind rice powder, lemon nee powder, etc., m the V.!:_~etanan ..
segment, and chilli chicken, pepper chicken, chicken 6?, egg curry, fish curry, mutton _curry masala,
etc., in the non-vegetarian masala segment. The ground spices range includes the flagship kuzhambu
chili powder, red chilli powder, coriander powder, turmeric powder, etc. , · •
Company sources say that for new product development and manufactur~ng, Mr._ Isaac s e~eryday
morning walks provided him with the insights. It is said that he used to give a qmck scan mto the
dustbins during his walks to understand the consumption patter~ in his neighbourhood, based on
the empty product wrappers thrown. This helped him to learn and study the food habits, product
usage, and preferences of people in that locality and create new products. The core raw materials,
red chilli and turmeric, are procured directly from farmers. For instance, chillies are sourced from
Guntur, turmeric from Erode, coriander from Rajasthan, pepper and cardammom from Munnar,
cumin and mustard from Madhya Pradesh, and so on. ·
The manufacturing facility of Aachi is located at Keel Ayyanabakk~, 15 km from Chennai in
Tamil Nadu. It has a manufacturing capacity of 120 metric tonn.es of spice powders and spice mixes
per day. Production·of some masala variants is outsourced for cost efficiency, but sources say that the
company adheres to strict quality control system to ensure quality of the finished products. For qual-
ity testing, the group invested in an exclusive testing services entity, Scientific Food Testing Services
(P) Ltd., for following food standards in the products based on biological and chemical content.
The manufacturing process is governed by the Food Safety Management System with ISO
9001 :2008 Certification. The R&D Team coordinates with the manufacturing units in developing
new products, packaging material, food labelling, product shelf life, and suitability of new products
fur human consumption. ·
The spices and spice mix powders are packed in automatic packing machines. Packs are ensured
to be tamper proof and sturdy enough to retain the aroma and flavour for a longer shelf life. The dis-
patch is done with the company's own trucks. The distribution is supported by a sales team, which
is monitored directly by the CMD.
Over the years the brand has extended into categories likes ready-to-cook range with products
such as gulab jmnun mix, rava idly mix, pal ada payasam mix, rava kesari mix, etc., It also manufac-
tures rice paste varit'tics such as biriyani rice paste, tamarind rice paste, tomato rice paste, etc., and
pickles in a wide range from lemon, mango, tomato, mixed vegetable, garlic, citron, etc., Ghee and
jams are also being manufactured. The brand currently has over 250 products in its range.
Aachi's products are available in different package sizes ranging from 100 grams to 5 l<g packs,
catering to different buyer segments. Apart from this, the regular ground spices are also <1vailalile in
sachets prin.·u at ~2, ~ 5, and~ 10 to target the lower-middle income segments. Most products ha\'l'
 . ,,
. r .4 c_a_se_1s
.:. .15:,___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
' -~
.:;. > .61
&~
a shelf life of 24 months, which again is higher than that provided by competitors which ranges .•··_ ~~
from 9 t9 18 months. ·>:, ~
Aachi's products reach the consumers through 5000 agents and 12 lakh retailers. The ~roduct · · ~~
range is classified into 8 divisions for easy distribution. As per the company sources, Aachi offers ~
more than 20% gross margins to retailers, which again is higher than the market standards which ·
ranges from 8-14 %. ·
With a view to serve small retailers in towns and villages, Aachi used the Hawker Sales Dis- ··· 1
tributors, whose everyday responsibility is to go all around and sell Aachi brand of products in the
remotest comers of markets across India. 10 The project began in April 2014 and currently there are · ·
around 700 hawker sales force distributing Aachi brand of products in the markets.
Apart from the conventional distribution network, Aachi also opened Aachi Model Shops to . ,. .. -~·
stock and sell the entire range of Aachi group products. The company believes that this model can ..
enable customers to choose from a wide range of products, including those that may not be available ::- · <:
in their neighbourhood stores such as toiletries and health products. The Aachi range of masalas and
food products are also exported to USA and the Middle-East. The company received the Export .. ·!_ -,
Excellence Award for 2016 from FIEO - Federation of Indian Export Organisation.
From the initial stages, Aachi has been investing on above-the-line (ATL) promotions. The TV ads .. _
of the brand are very popular. During the launch of Aachi Kuzhambu chilli powder, Aachi roped
in Devayani, a leading Tamil actress to promote the product. Actors like Satyaraj were also featured
in TV ads promoting non-vegetarian masala line. In the most recent TV advertisement of the brand;
Mr. Isaac himself promotes the brand, showcasing the procurement and manufacturing practices.
and the motto of the organization. Below-the-line (BTL) promotions li~e quantity purchase schemes
with the objectives of achieving a reasonable level of distribution and a good deal of shelf/string
space in retail outlets is also done alongside ATL for better reach and coverage.

► NORTH INOIAN MASALA

Unlike the South Indian masalas, where red chilli is a dominant ingredient, the North Indian Masalas
have a unique taste_and flavor where a distinct combination of spices are used. Spices such as bay
le~ves, cinnamon, pepper, cloves, cumin, fennel, kasuri methi (dry fenugreek leaves), mango powder,
mmt, pomegranate seeds, etc., form important ingredients in North Indian masalas alongside fa/
mirch (red chilli), giving it the distinctiveness.
Aachi Masala forayed into the North Indian masala segment in 2015 as a part of its expansion
strategy. The product range includes Garam Masala-the universal masala whi'ch 1·s u d · f
h N h I d' d· h . , se m most o
t e ort .n ian 1s es m two varieties, Royal and Super Garam Masala, Kitchen Kin Masala-
another universal masala which can be used both in vegetarian and non-vegetarian di;hes Ch t
A:1asalaf Channa Masala, Pani Puri Masala, Jal Jeera Masala, Paneer Tikka Masala etc The p,a k aa
sizes o North Indian masalas are 15 grams and 50 grams for most of th . , . c age
ny believed that its unique packaging strategy, which gives its rod t e 1products. Th~ compa-
po~ket-friendly pricing strategy will be able to take its ran e s p uc s a onger shelf hfe, and a
regions of _the country. g uccessfully to the northern and eastern
,.. THE COMPETITION
t d bMDH at the nation al level.11.
The major competitors in the .category are Eve~eS an . Th b nd is stocke d by 400,00 0 outlets
. I d· , l · brand based m Mum a1. e ra
Everest 1s n 1a s argest spices d· M h b·llion packs of Eyerest are sold each year.
3 705 1
d
in more than 1000 towns across In 1a. ore t an · .
There are more than 42 varieties of masala blends under the Everest bran n~e.
of spice~
MDH (the Mahash ian Di Hatti Limited) specializes in several unique traditio nal blends
hay Chum
suitable for different North Indian recipes. The compa ny was founde d in 1919 ~y Mahas
MOH brand -
Lal as a small shop in Sialkot, and has since grown in popula rity all over India. The
name is very well known through out India. :
Apart from thes.e, brands like Catch and Ramdev Masala s also enjoy a consid erable marke t share .
in the North Indian masala Category.
India.
At the regional level there are players like MTR, which has a very strong presen ce in12South
Apart from
MTR was established in 1924 as a restaur ant chain by the Maiya family in Bangal ore.
s and ready-
its South Indian masala range, the compa ny has a wide range of North Indian masala
s.
to-cook range, and targets the northe rn and eastern markets, and also the ·global market
nt. 13 The
State-level player, Shakti Masala has also got a decent market share in the masala segme
wide variety
company has been operating from Erode, Tamil Nadu since 1975. The brand offers a
of South Indian and North Indian masala range.

► ROAD AHEA D
friendliness.
Aachi Masala's core differentiators are affordability, shelf life, distribution, and retailer
It has found itself a distinct place· in Tamil Nadu households, especially in the last decade . With a
conside rable
brand name that resonates with the Tamil-speaking market segmen t, it a,so enjoys a
ic move to
mind share and brand recall, as per the company sourc·es. Despite being seen as a strateg
masala
establish itself as a national brand; its expans ion into the highly competitive North Indian
ges. The
range and other new products that cater to the pan-Ind ian customers, has its own challen
custom ers
brand presence of the competitors in ·the North Indian markets and brand loyalty of the
say if Aachi
are the major challenges apart from the logistics and retailing challen ges. Only time can
North Indian
is able to taste success in its produc t and market expans ion strategy, especially in the
masala range.
 ,.·,

FOQD, PRQCE$S1NG _
• ; f . • ,: : /·,; . ~ i;

Sector Snapshot - FOOD PROCESSING ..

Sector .Ct;mtrlb1,Jt.lon' To Emplyrne_m GeiieratiQrt ." .-
..·; ··>r (-<' -·, ;_ a'._,,-;, :, -__/ --~:_' ' ,• ,. , ,.. . • : '

_· ;.---'l CAR~_
: _11~8o/o _ · ..,, ·-~ _
., ·, ;;-~ /:·-,.;:,;;.: /":-:/:.; :;:;:'.;'•'.i~:'f; '[,' .,,-~_":·<· 1:\_
Sector Contributio'rl To Emplyment Generation
• • ~ I ~
· • , • , . : ,
·, ·

. '•
(
FY-24E ··

·'. :, ·- 1 ' .. ; Foocl proc,~Jri'g ~or-fuis been assign~ priority status

. · lnfrastucfut!:)~ :'_,, .. ;;.:".~-> ,., . . .... :<..;- ,for' b3/'~ c;:~d~ ao.~ ~-Export Zones~
. ;., ' . ~- ~~
/ ..,,, : . ":'
· '. ,,: : .,. · I:>' ·".,:. , ·;_. · , . ,...:, : liave,b~n set up across the country
... / .

'i .-· · :-;,~·- ~· --- .\ -:_,·

., ·, :; :.'- ·. Many glob~I ~d~ridl~ 6~~~j~ -are getting .
. JolnVentures And Tie u'i)s,· .:: ,.' ,' _
I~_\o j9i1Jt·_yentu~ tc;, m~e
gl(?bal-products available in India. • ·
. ' . ·,:• , . , ' ... -. ·.
, ..,S~rbuc;ks_and.TATA Alliance, The largest jol~ Ventures

.,
J' , ,:.;, . -~ ~ ; ·,•• ··~

' I
; : •, .. ;_ .., ~ - .· ·, ·:·: . ' .,
/ . .
' . ' . Surge In ~emaod for fruits and ·
·,· Proces~ food ; xports from India rose · ;.. ,, :· · . ~-- . ~-- v~etabies witne$sed wlth-~ift In
at a cAGR of 21.5% ·during · · · ( consumption. Change In production
· 6, accounting for USD19,_3,37.4 m_llllon lrJ FY16 . , , .: pa~ern a!~ notified wi1tl
"-.. - growing ck!mand -:
_,_ . 'I
"- .
··•·,· ------~- :

By 2024, food processing sector to employ

9 million people lnlndla

--
Sector Advantages

Import duty scrapped on

capital goods end raw materials for 100% eXpOrt-
orlented units Ex.else duty exemption of 100%
----
--~ 2020:!a~: size

for goods used In lnstallall.on of cold storage·

facilltles
/ reach USD482 BIiiion

----------
-----------
Source: www.ibef.org
 '
- • C
' .. -· -- ..
~-

AWARDS CONFERRED ON MR. A.D. PADMASINGH ISAAC ,.

;

SI. No. Name of the Award / Award Constituted by Award Given For . Year
1 National Award The Best Employer Award 2016
C
2 Most Influential Leader ERTC 2017
-
3 Asia's Most Promising Brands World Consulting & Research Corporation.- 2017
~.
l,
4 Centennial Legacy Award LIONS Clubs 2017
5 International Achievers Conference Fatest Growing Indian Company Excellence Award 2016
6 Confederation of Indian Industry CII - 5S Excellence Awards 2016
7 Export Excellence Award - FIEO Export Excellence Award. 2016
8 Fast 50 India's Fastest Growing Brands 2016
9 WCRC Leaders Power Leaders '
2016
10 The Brand Trust Report India's Most Trusted Spice ,
2015
11 Mayan Awards (Vista India Communications) Helping Hand to Humanity 2015
12 Indian Institute of Materials Management Significant Sontributlon to SCM field - '
2015
13 Comnlsclent · India's Most Attractive Brand 2015
14 Corporation Bank _ ·- Best Entrepreneur 2015
15 WCRC Leaders Summit 2014 Asia's Fastest Growing Marketing Brands 2014
16 ABK - AOTS DOSOKAI Sustenance Award · 2014
17. Lions Club International '
Worlps No 1 Masala Products 2014
18 TEA Award Best'Spices Advertisements.MAromatic Kings' Award 2013
-, · 19 ABK - AOTS DOSOKAI ABK;- AOTS CDISSIA 5S Trophy & Certificate 2012
20 Lions International Life Time Achievement Award 2012
21 FICCI Tamll Nadu State Counll CSR Excellence Award 2012
22 MEGAl V MEGA Womens Award 2010
--
23 TIE Chennal Extr~me Entrepreneur Award 2010
24 Times Group Trlalblazers 2010
I

CERTIFICATIONS HELD BY MCH I GROUP OF COMPANIES

---► Mr. Isaac Is committed to supply high quality food products to satisfy the expectat
ions of millions of customers globally through
strictly adherence to Food Safety standards. Aachl products are made under
ISO and HACPT certiflcatlon.
--- ► Most Aachi products are packed at their own manufacturing units. To have control on Quality and Food safety standards.
Aachl relles on the COAT. It is headed by a General Manager having rich experien
ce in Food Processing. Testing and Food Safety.
CQAT has QA Analysis at each and every manufacturing unit. CQAT Member
s are trained on HACCP. Consumer Affairs. Legal
Metrology, Packaging Technology, Six Sigma, 5S Tools, Global Food Safety
Initiative (conducted by US AID) etc.
---► To comply wlththe Food Safety Managment System (FSMS / ISO 22000:2005), all incoming Raw material s and Packaging are
tested for compliance to set specifications. All produc flows are monitored on-llne
as part of Quality Assurance. Quality Analysts
keep close vigil on Process Flow for compliance to Standard Operating Procedu
res and Regulatory Issues.
---► CQAT monitors the on-going productions to fulfill the high quality expectations of Aachl. COAT recomm ends lmporovements In
Process. Automation, Modernizing present facllltles and Implementing latest testing
methodologies to check Food Adulterants.
Quantity Inherent properties of Process Ingredients and Human Health Pathogen
s to the Top Management.
---► Vendors, Audits are made to Identify best suppliers of repute. Aachl CQAT bears the moral respons ibility in achieving the Vision
and Quality Polley of Aachi, It strives hard to protect the 'Aachl' brand name and
secure Its reputation.

'. ' ..
Sourc~: www.aachi~roup.com