The Hindu Business Line : Dukes expanding in northern, eastern regions

New Delhi May 1 Dukes Consumer Care Ltd, the Hyderabad-based confectionery manufacturer and marketer, is expanding in the northern and eastern parts of the country.

"We have established our presence as a confectionery company in the southern and western markets. Though we already have a presence in the northern and eastern parts, we have decided to increase our focus in these regions and gain further ground," Mr Vikas Agarwal, Managing Director, said. In the major segments that it operates — biscuits and chocolates — the company enjoys a four per cent share each in the categories, in the western and southern markets put together. Apart from geographical expansion, it is also focussing on demographic development through leveraging the retail boom. "We have decided to leverage the retail boom not only through urban centred modern retail outlets, but also those that cater to the rural masses," said Mr Agarwal. For urban areas, the company is already retailing its products through chains such as Big Bazaar, Food Bazaar, Reliance and Subhiksha through exclusive tie-ups. It is also in talks with several others for strategic associations.

For rural retailing, the company has decided to create different value packs of its products that would suit rural consumers in terms of price and size. It has also started talks with organised rural retailers such as ITC's e-choupal and Godrej's Adhaar for tie-ups. On marketing initiatives, Mr Dinesh Kaushal, Head of Sales, said, "We will market our products through a 360 degree approach that would include leveraging the print, television and radio mediums. But our specific focus will be on below-the-line activities and point-of-purchase promotional offers." The company plans to spend around Rs 8-Rs 10 crore in marketing in 2007-08 as compared to Rs 4 crore in 2006-07. Dukes expects to double its turnover in 2007-08 to Rs 40 crore from Rs 20 crore last year.

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