The Hindu Business Line : ITC ties up with KVIC to source, distribute Mangaldeep <I>agarbattis </I>

ITC Ltd has signed a memorandum of understanding with Khadi & Village Industries Commission (KVIC) to source and distribute its `Mangaldeep' agarbattis.

Under the MoU, Mangaldeep agarbattis manufactured by KVIC units will be distributed by ITC through KVIC's 7,050 Khadi Bhavan/Khadi Bhandar outlets, and through other KVIC-approved suppliers throughout the country, and in the general market, where the product was already being sold.

The MoU was signed in Mumbai by Mr V.M. Rajasekharan, CEO-Agarbatti SBU, ITC Ltd, on behalf of the company, and by Mr I. Jawahar of KVIC, Tamil Nadu.

Under this new arrangement, ITC will market Mangaldeep brand agarbattis in conjunction with KVIC and undertake sales promotion initiatives with the Commission's support. The initiative will be launched by way of a maiden rollout through KVIC-approved suppliers in Coimbatore, Tamil Nadu, around Diwali time.

Generating rural employment: Mr R. Srinivasan, CMC Member of ITC, told Business Line, "It is a small beginning for a collaborative partnership that can benefit both KVIC and ITC." Mr L.G. Israni, looking after the marketing and publicity/promotion of KVIC products, said KVIC already had a well established production base for unbranded agarbattis in the South, particularly Tamil Nadu and Karnataka, and the tie-up with ITC will provide that vital marketing thrust and quality control benchmarking, benefiting both.

He described the collaborative venture as the perfect example of a public-private partnership, for employment generation, particularly in the semi-urban and rural areas.

Tech support: According to Mr V.M. Rajasekharan, CEO, Agarbatti SBU of ITC, the company will provide the vital inputs to upgrade the manufacture of agarbattis by villagers and/or small-scale manufacturers.

He said ITC has, through its participation in the agarbatti business, based on 100 per cent outsourcing from the small sector, has consistently tried to enhance the competitiveness of the small and medium sectors. "We provide the complementary R&D-based product development and marketing strengths, especially the breadth and depth of the company's tried marketing and distribution."

ITC, which sources and markets nearly 140 million agarbatti sticks per month, has three principal vendors in Sankranti, Ananth and Jayanti (all in Bangalore), Aurobindo Ashram, Pondicherry, Swastik in Chandigarh, and the newly appointed vendor unit in Tripura.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page