Why Tamil Nadu is a favoured hotbed for new FMCG brands

When Godrej Consumer Products Limited (GCPL) introduced Ninja, a pet food brand, and Bloq, a new anti-perspirant, it chose to do so not in Mumbai or Delhi, but in Tamil Nadu.

It is not alone. 

The state has become the preferred launchpad for numerous consumer goods, including Godrej’s own Fab liquid detergent and Cinthol Bodywash. The reasons, as per GCPL CEO and MD Sudhir Sitapati in a LinkedIn post, are revealing.

First, Tamil Nadu resembles South-East Asia more than it does much of India. Its per capita income exceeds $4,000 making it wealthier than the national average by a factor of 1.6. Unlike states such as Telangana or Karnataka, where affluence is concentrated in Hyderabad and Bengaluru respectively, Tamil Nadu’s prosperity is more evenly distributed across cities and towns. It mirrors the broad-based consumption patterns of countries like Vietnam and Indonesia.

Second, its media ecosystem is unusually self-contained. Linear television still dominates the Indian advertising landscape, and Tamil Nadu offers an enviably efficient media market. Its population is overwhelmingly Tamil-speaking, and its television viewership is consolidated around a small number of local channels. A campaign can reach most households in the state within a matter of weeks. In contrast, other states with comparable income levels require spend across multiple language networks, diluting the effectiveness of a regional test.

Third, Tamil Nadu’s retail structure combines modernity with fragmentation. New categories tend to perform better in self-service formats, where consumers can examine packaging and pricing at their leisure. Yet large national retailers are often slow to list unproven brands, restricting access to a few outlets. Independent supermarkets, of which Tamil Nadu has a large and disaggregated network, are more willing to experiment with unfamiliar names. This allows for faster statewide distribution and ensures advertising investment is not squandered on stores with limited availability.

All three factors combine to make Tamil Nadu a marketer’s dream: wealthy, media-isolatable, and equipped with a retail environment friendly to innovation.