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G.K. Nair

Packing of `Craze' biscuits in progress. - K.K. Mustafah

Kochi , June 21

The Thrissur-based Cookies India Pvt Ltd, a successful SSI unit manufacturing `Craze' brand of biscuits is in expansion mode targeting the overseas markets in Africa and Latin America.

The company, which has been one of the few units to have survived competition from multinationals in the country, has an annual turn over of Rs 10 crore and of which Rs 3 crore comes from exports, Mr V. Mangat, Managing Director of the company told Business Line.

"We are now exporting our products to Botswana, South Africa and Yemen and would soon enter the markets in Mozambique and Angola in Africa. Besides, the company has received enquiries from some of the Latin American markets also." With penetration into the Gulf markets being difficult due to the presence of products of multinationals,"we have decided to offer our products in the markets in the developing countries where the response has been very good," he said.

`Growing demand'

The experience so far is that "despite stiff competition from West Asian and European countries, our biscuits have found acceptance among the consumers in these countries due to excellent quality of the product and competitive price and the demand is growing."

Since the demand for Craze biscuits from overseas markets has increased, the company has decided to expand its capacity to 4,200 tonnes of biscuits a year from the present 3,600 tonnes besides modernising the unit with an estimated investment of Rs 2 crore, said Mr K. Achuthan, Director of the company.

He said that the further expansion is also aimed at consolidating its position in Kerala where 90 per cent of its products are sold.

He also said more than Rs 3.5 crore was spent on brand building since the inception of the company in 1985, apart from introducing consumer and dealer schemes.

Its ISI certified products enjoy 10 per cent share of the State's market, which is dominated by major brands such as Britannia, Parle and Sunfeast (ITC).

Today Craze has more than 30 varieties of biscuits available in more than 80 packs catering to the needs of all sections of the customers.

The onslaught of the major brands were so severe that out of the 19 manufacturing units that were operating in the State very few have survived, he said. All raw materials have to come from other States and hence their cost is often higher by 20 per cent.

Despite increase in price of all commodity items with prices varying from day to day, Craze has been able to hold back prices due to their innovative product development and marketing strategy.

The unit operating at Chiyyaram in the outskirts of the Thrissur City provides direct employment to 120 people, most of whom are women, while over 150 are indirectly benefited, he said.

Existence of such SSI units in the State is essential for creating employment opportunities for the unemployed who are mostly either semi-skilled or unskilled. Therefore, the support of the Government for the survival and development of such units becomes inevitable, Mr Achuthan said.

He said that in recognition of the high quality of products manufactured by the company, it was awarded National Award for Quality Products by the Small Industries Development Organisation under the Union Ministry of Industries in 1988 and 1997.

Besides, it has bagged Best Performance Award (First Prize) of the National Productivity Council, New Delhi, consecutively for three years from 1994-95 and Jamnalal Bajaj Uchit Vyavahar Puraskar-2000 for fair business practices.

More Stories on : Strategy | Food & Dairy Products | Kerala

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