International expansion solutions of Ramalingam Foods by KLS Consultants

Country

Proposed Plan of expansion

Product Mix for Expansion

Mode of expansion

Myanmar

The population of Myanmar is growing and it will have a sizeable market. In the South East Asian region, this country has the highest Indian population. The products can be shipped to Myanmar through the sea route to Yangon Port and Thilawa Port. The rates of their products are reasonable for the country’s standard of living. There is a demand for exported processed foods but a local company for the same is absent. Therefore, Ramalingam foods will be easily able to enter as they will face a low competition. Free trade agreement with ASEAN countries will help in reducing the tax burden.

With the Indian population among the SEA countries, it can be undoubtedly claimed that all the variants can be safely launched in Myanmar. Along with the existing products in their portfolio, they can produce instant mixes for the local cuisine. They could look into adding the following mixes in their portfolio over the next few years:

• Shan noodles mix
• Myanmar curry mix
• Readymade Mohinga
• Instant shan style tofu noodles
• Burmese Indian Dosa batter

Ramalingam Foods expects to enter into partnership with local Burmese distribution companies. With an already established logistics base and strong supply chain network, Ramalingam Foods can minimize Logistics related costs.

Singapore

Singaporeans spend approx. $7.7 billion on Food and beverages. So, entering the Singaporean markets is of immense importance in the South East region. High imports in the country shows the high demand for processed foods. There is an increase in the household monthly income and working people have a very busy schedule. This clearly shows that people will be very keen on instant foods which they can eat at the comfort of their homes. Singapore is India’s second most preferred ASEAN countries accounting for 38% of its total trade with the ASEAN counterparts.

For the local flavour, few variants with limited Stock keeping units can be launched initially as a part of pilot phase of the expansion. Later more variants can be introduced. The following products can be considered for the local variants:

• Nasi padang
• Laksa
• Satay
• Bak Chor Mee(Noodles with minced meat)
• Hokkien mee

Ramalingam Foods expects to form strategic alliances with H L Young Group who are specialized for distribution of packaged foods.

Malaysia

Beverages, canned seafood, dairy goods, noodles, and bread products are among the principal products produced by Malaysia's food processing industry. Malaysia's government has been forced to invest in the food sector due to high trade imbalances in the food sector. As a result, Ramalingam Foods has a fantastic potential to penetrate the Malaysian market, as the home market is still developing. As a result, there is a lot of untapped potential for growth.

All the current 13 products are expected to be launched in Malaysia. Apart from these, the following local variants can also be included:

• Nasi Lemak Mix
• Roti Channai Instant Mix
• Mee goreng mamak
• Rendang

In Malaysia, Ramalingam Foods wants tie up with the iconic H.L. Young Group who have been a leader in the F&B sector in Singapore, Malaysia, existing over 50 years and specialises in dry food distribution network.
 

Thailand

There has been a steady increase in the consumption of processed and ready-mix foods in Thailand due to busier consumer lifestyles. So, there’s a huge untapped market that has a high growth potential.

The following local variants can be introduced in Thailand:

• Satai
• Pad Thai
• Thai Green Chicken Curry
• Thai Fish Green Curry

The firm plans to partner with Geeta Group distributors (Thailand) which specializes in transportation of processed consumable foods to restaurants all across the country as well the retail supermarkets. So, the firm can leverage from the wide consumer base of the parent company in the country.

Indonesia

With busy consumers and increase in single-person households, the processed food markets can leverage on this certain consumer inclination. Indonesian people are open to newer flavours and variants. So, launching a new food product won’t be a big deal if the firm can focus on health consciousness and hygiene aspects.

Except the coffee mix (since Indonesia is the fourth largest producer of coffee, so launching coffee mix won’t generate sufficient revenue for the firm), the other variants can be launched in their respective 200 gms, 500 gms and 1000 gms variants. Other than that, local mixes can also be :

• Sambal
• Bakso
• Sop Kambing

In Indonesia, Ramalingam Foods will form partnerships with Tigaraksa Satria, the largest nationwide independent distributors. With a nationwide coverage, the expansion becomes easier to be put into effect.