The Hindu Business Line : Solae launches soya drink; eyes Rs 300-cr sales in 5 years

THE Solae Company appears to be betting big on India. The eight-year old company, with Rs 20 crore sales at present, expects to grow to Rs 300 crore in the next five years.

On the anvil is an investment of Rs 50 crore by 2006 in establishing a manufacturing facility for the textured soya protein-based product that the company launched in the country on Tuesday. It is also planning to unveil some value-added variants in the next two years.

Solae is targeting close to 70 per cent of the expected revenue within the next five years to come from the new product, called Soy day. Says the Area Director (South Asia) and Country Head (India), Mr Sanjeev K. Chaudhry, "At present, only about 20 per cent of the one-lakh-tonne texturised soya protein market accounts for branded products. We expect to grab a significant share of the market with the launch of Soy day."

He said with this launch, the company had — for the first time anywhere in the world — come up with a product that it would be selling directly to the consumer. It has earmarked up to Rs 5 crore for advertising and marketing the product in 2005. The new product will initially be available in Delhi, Mumbai and Bangalore and in the beginning, be imported from the company's manufacturing facilities in Brazil.

Besides Soy day, the company has also launched two co-branded products in the country, and a co-branded ready-to-drink soy beverage is scheduled to hit the market next month. Mr Chaudhry said three more co-branded products would be unveiled in India in 2005.

He said that the company conducted a detailed market research study in September last year to examine the feasibility of marketing textured soya products in the branded segment and its results spurred Solae to go ahead with Soy day.

There is a "significant presence of protein quality malnutrition in India," he said, quoting extensive consumer research. The company is expected to approach the Foreign Investment Promotion Board for permission to set up a manufacturing plant for the new product. The Solae Company is a joint venture between DuPont and Bunge Ltd.

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