Financial Daily from THE HINDU group of publications
Wednesday, May 10, 2006
Financial Daily from THE HINDU group of publications Wednesday, May 10, 2006 |
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Marketing
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Strategy Corporate - Diversification Indage Group plans to enter food segment Dharini Nagarajan
New Delhi , May 9 Seabuckthorn Indage Ltd (SIL), a subsidiary of the wine and hospitality major, the Indage Group has charted diversification plans for its business. The company is looking to enter the foods category and has finalised around 80 projects in the domain. The company, to begin with, plans to roll out its biscuits and over-the-counter (OTC) products in the coming few months. "Our new products would be launched on the health plank," said Mr M.S. Dhanota, President of SIL. The company is also learnt to be focussing on other food items such as jams and sauces apart from sharpening focus on its juices business. It plans to make juices into a Rs 30-crore business and aims to capture around 5 to 8 per cent of the market by the year-end. "We aim to position ourselves as one of the top three juices brands," Mr Dhanota said. For now, the company plans to focus on the domestic market to gain a strong foothold before it ventures into foreign markets. "Eventually, we would expect exports to contribute around 10 per cent of the total revenues," Mr Dhanota pointed out. However, the company has not earmarked a large amount for a marketing blitz, but for its below-the-line marketing activities it would spend around Rs 50-70 lakh. SIL would further its distribution network by entering into joint marketing strategies with department chains and supermarkets. "We would strengthen our shop-in-shop concepts this year," Mr Dhanota said. The company has set up a R&D facility in Shimla with an initial investment of Rs 25 crore. Though SIL doesn't currently have a manufacturing facility of its own, it plans to set up one in the near future. Currently, juices are being processed and packaged at the Godrej Foods plant in Bhopal. Seabuckthorn is a Rs 5,000-crore business worldwide and is growing rapidly. At present SIL offers six juice variants (seabuckthorn, pineapple apple, apple peach, mixed fruit, orange and blackcurrant). The company is also exploring other categories such as pharmaceuticals, cosmeceuticals, nutraceuticals, and poultry and cattle feed.
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