‘Old Legacy Draped in New Strategy’ – Chitale Group’s Journey of Strategic Shift
- Dr Shraddha Kulkarni
- 1245-1249
- May 16, 2025
- Social Science
‘Old Legacy Draped in New Strategy’ – Chitale Group’s Journey of Strategic Shift
Dr Shraddha Kulkarni
Faculty, Dr D Y Patil B-School, Pune, India
DOI: https://doi.org/10.51244/IJRSI.2025.12040103
Received: 24 April 2024; Revised: 26 April 2025; Accepted: 02 May 2025; Published: 16 May 2025
ABSTRACT
This paper explores the strategic transformation of Chitale Group through a qualitative case study approach. Drawing upon site visits, interviews, and company documentation, it highlights the organization’s efforts in digital transformation, product diversification, sustainability, and branding. The study situates Chitale’s evolution in a broader conversation on humanistic capitalism and proposes future trajectories for long-term sustainability and global impact.
INTRODUCTION
Chitale Group, a prominent food brand from Maharashtra, India, was founded in 1950 by Bhaskar Ganesh Chitale. It has expanded from a modest dairy operation into a diversified enterprise with international reach. This paper analyzes Chitale’s transition using a strategic lens and contextualizes its market relevance through SWOT analysis and business evolution.
Table 1: SWOT Analysis: Chitale Group, Pune
| Strengths | Weaknesses |
| Established Brand Legacy since 1950 | Heavy reliance on Maharashtra market |
| Diverse product range: dairy, sweets, snacks | Fixed store hours may restrict customer access |
| Technological adoption (automation, RFID) | Limited online presence |
| Strong financial health and credit profile | Vulnerability to raw material price fluctuations |
| Opportunities | Threats |
| Expand into new Indian and international markets | Strong competition in food industry |
| Product innovation for health-conscious consumers | Stringent food safety regulations |
| Strengthening digital and e-commerce presence | Supply chain vulnerabilities |
| Sustainability initiatives and eco-friendly practices | Economic fluctuations affecting consumer spending |
Sources: cited in references.
LITERATURE REVIEW
Strategic management theories such as Porter’s Five Forces and Blue Ocean Strategy inform this analysis. The PRISMA methodology was employed to identify and synthesize relevant studies in food sector innovation, sustainability, and digital transformation. Prior case studies on Amul, Nestlé India, and Patanjali offer useful points of comparison regarding market penetration and technological modernization.
METHODOLOGY
This qualitative case study is based on first-hand interviews with key company members (Indraneel and Janhavi Chitale), site visits to Chitale outlets, and archival reviews of media and company reports. Observations were triangulated with secondary data sources to ensure validity.
RESULTS
Chitale Group has demonstrated robust growth by strategically diversifying products, modernizing operations, and leveraging technology. The following data illustrates this transformation over time:
Product Diversification
Chitale Foods has diversified its product line to include a range of innovative products beyond traditional dairy items and snacks. This includes healthier options and new variants of existing products. The company has introduced premium product lines to cater to the evolving tastes of affluent consumers, such as organic and gourmet offerings.
Table 2: Product Development of Chitale Group
| Year | Milk Processed (litters/day) | Buffaloes Distributed | Subsidy Paid to Farmers (₹ million) | Snacks Production (kg/day) |
| 1950s | 10,000 | 500 | 1 | 1,000 |
| 1990s | 100,000 | 5,000 | 10 | 1,500 |
| 2020 | 300,000 | 13,881 | 30 | 3,000 |
| 2023 | 300,000 | 13,881 | 30 | 3,000 |
Source: Sources: cited in references.
Market Expansion
To tap into new markets, Chitale Foods has expanded its distribution network beyond Maharashtra to other Indian states and even internationally. The company has embraced online sales channels to reach a broader audience, leveraging e-commerce platforms to drive direct-to-consumer sales.
Table 3: Market Expansion Journey of Chitale Group
| Year | Market Expansion Milestones | Key Markets Entered | Revenue Growth (%) | Products Introduced |
| 1950 | Established Chitale Bandhu Mithaiwale | Pune, Maharashtra | – | Bakarwadi, Sweets |
| 1970 | Expanded Dairy Operations | Western Maharashtra | 15% | Milk, Ghee, Paneer |
| 1990 | Automated Dairy Plant Setup | Pune, Mumbai, Western Maharashtra | 25% | Skimmed Milk Powder, Cheese |
| 2000 | National Market Expansion | Delhi, Gujarat, Karnataka | 35% | Shrikhand, Flavored Milk |
| 2010 | Entry into International Markets | Middle East, US, Europe | 45% | Dairy Products |
| 2020 | E-commerce and Online Sales | Pan-India, Global Markets | 60% | Expanded Snacks Portfolio |
Sources: cited in references.
Technology and Automation
Chitale Foods has invested in modernizing its production facilities with advanced technology and automation to enhance efficiency and product quality. The company utilizes data analytics to better understand consumer preferences and optimize inventory and supply chain management.
Graph 1. Technology and Automation Journey of Chitale Group
Outcomes and Impact
Enhanced Market Share: The diversification and expansion efforts have helped Chitale Foods increase its market share and presence in new regions.
- Revenue Growth: The introduction of premium and innovative products has contributed to significant revenue growth.
- Operational Efficiency: Automation and technology upgrades have led to improved operational efficiency and cost savings.
- Brand Recognition: The revitalized branding and marketing strategies have bolstered brand recognition and consumer loyalty.
Brand Recognition Journey of Chitale Group:
- 1950s: Local brand identity with a focus on sweets like Bakarwadi.
- 1970s: Regional expansion into dairy products.
- 1990s: Automation and strong regional presence.
- 2000s: National market penetration.
- 2010s: International expansion.
- 2020s: E-commerce, online sales, and digital marketing, leading to a broad global market presence.
Graph 2. Branding Strategy from 1950 to 2020
DISCUSSION
The analysis reveals how legacy businesses can adapt through strategic foresight. Chitale Group’s evolution reflects a balance between tradition and innovation. Key takeaways include the importance of technological modernization, digital branding, and responsiveness to consumer trends. Moreover, Chitale’s CSR and sustainability initiatives showcase the company’s alignment with humanistic capitalist values.
Future Outlook and Sustainability
Looking ahead, Chitale Group could explore partnerships for climate-resilient agriculture and expand its model to underserved regions globally. Drawing from historical models like Andalusian commerce, the company may envision a multi-century legacy grounded in ethics, innovation, and inclusion.
CONCLUSION
Chitale Group’s strategic transformation offers a compelling case for legacy businesses seeking relevance in the digital and sustainability-driven future. The company’s focus on quality, efficiency, and community development will be crucial in maintaining its market leadership and societal impact.
REFERENCES
- Chitale Group. (n.d.). Management. Chitale Dairy. https://www.chitaledairy.com/About%20Us_dairy/Management_dairy Mint Lounge. (2021, November 21). The Chitale brothers: A savoury history. https://lifestyle.livemint.com/food/discover/the-chitale-brothers-a-savoury-history-111637525218005.html
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- Mint Lounge. (2021, November 21). The Chitale brothers: A savoury history. Retrieved May 2, 2025, from https://lifestyle.livemint.com/food/discover/the-chitale-brothers-a-savoury-history-111637525218005.html
- Mint Lounge. (2021, November 21). The Chitale brothers: A savoury history. Retrieved September 6, 2024, from https://lifestyle.livemint.com/food/discover/the-chitale-brothers-a-savoury-history-111637525218005.html [7].
- Outlook Business. (2021). Chitale Group’s success comes from a healthy mix of technology and tradition. Retrieved May 2, 2025, from https://www.outlookbusiness.com/magazine/business/story/chitale-groups-success-comes-from-a-healthy-mix-of-technology-and-tradition-6027
- Redkar, S. (n.d.). Chitale Bandhu’s success story: A business that rose from a pandemic. The Digital Yug. Retrieved May 2, 2025, from https://www.thedigitalyug.com/startup-story-of-chitale-bandhu
- Redkar, S. (n.d.). Chitale Bandhu’s success story: A business that rose from a pandemic. The Digital Yug. Retrieved September 6, 2024, from https://www.thedigitalyug.com/startup-story-of-chitale-bandhu [8].
- Redkar, S. (n.d.). Chitale Bandhu’s success story. The Digital Yug. https://www.thedigitalyug.com/startup-story-of-chitale-bandhu Times of India. (2020). Chitale Bandhu’s iconic journey. https://timesofindia.indiatimes.com/spotlight/uniting-innovation-with-taste-chitale-bandhu-mitaiwales-iconic-journey-in-the-last-70-years/articleshow/76814697.cms