India’s deep-rooted love for fried snacks fuels a massive market that continues to expand despite rising health consciousness. In this dynamic and competitive segment, McCain India has carved a strong identity. Since its entry into the Indian market in 1998, McCain has grown steadily, emerging as a category leader. The brand built its reputation on french fries and frozen snacks and now boasts an expanded product portfolio that caters to the evolving palate of Indian consumers.
For the financial year 2023-24 (FY24), McCain India clocked a revenue of Rs 1,214 crore from operations, marking a 3% year-on-year (YoY) growth compared to Rs 1,172 crore in FY23. With an additional Rs 31 crore from interest on deposits, the total revenue rose to Rs 1,245 crore for FY24, compared to Rs 1,189 crore in FY23, according to its filings with the Registrar of Companies (RoC).
A Market Leader with Deep Roots
McCain has leveraged India’s rapidly urbanizing population and growing appetite for convenience food. With working professionals and nuclear families seeking quick snack options, McCain positioned itself as a go-to brand for frozen french fries, potato wedges, cheese bites, and more. Its products dominate shelves in modern trade outlets, kiranas, QSR chains, and digital platforms like BlinkIt, Swiggy Instamart, and Zepto.
Despite modest revenue growth in FY24, McCain India continues to command significant market share in the frozen fried snack segment. The company enjoys strong brand recall, particularly among millennials and Gen Z consumers, who seek both taste and convenience.
Revenue Composition and Distribution Strategy
McCain generates 100% of its revenue from the sale of its fried products, with no other major product or service lines contributing to top-line growth. Its distribution strategy blends traditional retail, modern retail chains, foodservice clients, and quick-commerce channels. This multi-pronged strategy allows the brand to reach metros and tier-1 cities efficiently. Quick-commerce platforms, in particular, have helped McCain tap into impulse purchases and late-night snacking trends.
The company has also established partnerships with restaurants and cafes across India to place its products in commercial kitchens. These alliances enable chefs and outlets to deliver quality snack experiences without in-house prep or cooking infrastructure.
Cost Pressures and Expense Trends
While McCain maintained revenue growth, its expense structure saw significant changes in FY24. The company’s largest cost driver remains material procurement, which accounted for 43.8% of total expenses. As demand rose, this cost increased to Rs 493 crore in FY24, reflecting both volume expansion and raw material price fluctuations.
Employee benefit expenses also grew by 19%, reaching Rs 100 crore in FY24. McCain expanded its workforce to support distribution, production, and back-end operations. As it focused on enhancing supply chain efficiency, the company hired across logistics, warehouse operations, and quality control functions.
Aggressive Advertising Push
McCain India significantly ramped up its marketing efforts in FY24. The company spent Rs 88 crore on advertising and promotions, marking a 63% increase compared to the previous year. This sharp rise in advertising expenses reflects McCain’s intent to strengthen its brand presence in newer geographies and retain mindshare amid increasing competition.
With new entrants from groups like ITC and Godrej, McCain faces fierce brand and shelf competition. These conglomerates offer strong retail muscle, R&D capabilities, and established supply chains. To hold ground, McCain invested heavily in digital and television campaigns, influencer collaborations, and in-store promotions.
Other Operating Expenses
Besides raw materials and advertising, McCain’s spending increased across several operational heads. The company incurred higher costs in power and fuel, contract labor, storage, freight, and management fees. Total operating expenditure reached Rs 1,125 crore in FY24, up from Rs 1,020 crore in FY23.
These increases reflect McCain’s ongoing investments in capacity expansion, logistics infrastructure, and cold-chain reliability. Efficient transportation and temperature control remain critical to maintaining product quality and shelf life, especially in India’s diverse climate zones.
Profitability and Financial Metrics
Despite increased sales, McCain experienced a dip in profitability. The brand reported a net profit of Rs 89 crore in FY24, down 29.4% from Rs 126 crore in FY23. This drop resulted primarily from elevated advertising and overhead expenses.
However, McCain continues to maintain healthy financial ratios. Its Return on Capital Employed (ROCE) stood at 15.28%, and EBITDA margin at 4.58%. On a unit economics level, the company spent Rs 0.93 to earn one rupee of revenue in FY24, reflecting decent cost efficiency given the capital-intensive nature of food manufacturing and distribution.
Challenges in a Shifting Market
The Indian snack market continues to evolve rapidly. On one hand, consumers crave crunchy, indulgent treats. On the other, rising awareness about health, nutrition, and clean labels has birthed a wave of better-for-you snacks. McCain often finds itself in a tough spot when it comes to the health quotient of its offerings.
Several D2C snack startups now push air-fried, baked, millet-based, or protein-rich alternatives that claim health superiority. These brands tap into urban wellness trends and challenge legacy players like McCain to innovate or reposition.
McCain, so far, has stayed true to its core fried offering. But the company must evolve to cater to both traditional tastes and modern demands. Introducing baked versions or products with fewer additives could help broaden appeal and attract health-conscious segments.
Opportunities in Cold Chain Infrastructure
One of McCain’s biggest growth levers lies in India’s improving cold chain infrastructure. For years, limited cold storage and poor last-mile refrigeration hampered the reach of frozen foods into semi-urban and rural areas. That’s changing now.
New logistics startups, government initiatives, and retail innovations have started building stronger cold supply networks. McCain can now penetrate deeper into tier-2 and tier-3 cities, where aspirational consumption is growing, and demand for branded, hygienic snack products is rising.
By optimizing supply chain efficiency, McCain can reduce wastage, control costs, and ensure product consistency across regions. It can also reduce dependence on seasonal markets and urban hubs.
Looking Ahead
McCain India stands at an important crossroads. It enjoys strong market leadership, brand recognition, and a loyal consumer base. But to sustain momentum, the company must address key challenges—shifting health trends, rising costs, and aggressive competitors.
Investing in product innovation, healthier variants, and better storytelling could help McCain reposition itself as a modern brand that delivers both taste and responsibility. At the same time, leveraging India’s expanding cold-chain network will allow it to expand reach and reduce operational costs.
McCain has built a solid foundation over the past 25 years. With strategic recalibration and timely execution, the brand can not only retain its crunchy dominance but also lead India’s frozen snack evolution in the coming decade.