The Hindu Business Line : Campco bid to beef up distribution

THE chocolate division of the Mangalore-based multi-state cooperative — Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd — is looking at joint initiatives with other cooperatives to strengthen their redistribution network.

In this regard, Campco is in the final stages of signing an agreement with the Kerala State Rubber Cooperative to market Rubek balloons of the latter through Campco's redistribution network.

Sources in Campco told Business Line that this joint marketing initiative of Campco and Kerala State Rubber Cooperative is likely to be implemented in April.

At present, Campco's chocolate products are sold in nearly 1.5 lakh outlets in the country. The Rubber Cooperative, apart from its outlets in Kerala, can utilise the redistribution network of Campco to market its product across the country. That means stockists of chocolate products get another product, bringing in additional revenue to them.

Sources said that this initiative would help both the cooperatives.

This will help them expand their market and reduce overhead expenses. In such arrangements, cooperatives share their infrastructure and manpower for their mutual benefit.

The Kerala State Rubber Cooperative, in association with a Malaysian partner, has set up a balloon-manufacturing unit at Thiruvananthapuram. Recently, it also launched the branded balloon, 'Partyman', in the market.

Sources said that talks are also on with other units to market their products through Campco's redistribution network. One of them is a toothpaste brand in Kerala and the other is a confectionary brand in Karnataka.

They said that though Campco is ready for such arrangements with good private players, the focus will be on cooperative institutions and Government-aided agencies.

Campco expects to earn around Rs 2 crore a year from its joint venture with Kerala State Rubber Cooperative.

If the deal with the toothpaste brand comes through, then it can earn additional Rs 10 crore a year, sources added.

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