Business Daily from THE HINDU group of publications
Tuesday, May 15, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, May 15, 2007 ePaper |
|
|
|
|
|
|
|
Marketing
-
Brands Perfetti plans higher priced brands Debdatta Das
New Delhi May 14 Perfetti van Melle India (PVMI) Pvt Ltd has embarked on a new marketing strategy to manufacture and market relatively higher priced brands, in an effort to ease out the pressure on margins from its existing brands. "We have decided to manufacture and market slightly higher priced brands in order to bring balance to our margins which are currently under a lot of pressure due to increasing prices of raw materials such as glucose, sugar and milk," said Mr Prakash Wakankar, Managing Director, Perfetti van Melle India Pvt Ltd. "Well, it's not only us who is facing the problem. It's an industry challenge since these raw materials are commonly used across the sweet confectionery market," added Mr Wakankar. According to the company, while prices would be increased, it would have to be done keeping in mind the affordability factor, since PVMI deals in mass products. Some of the company's flagship brands are Alpenliebe, Center Fresh, Big Babol and Chlor-mint. In fact, earlier during the year, on a visit to the country, Mr Stefano Pelle, Vice-President and Chief Operating Officer, Business Unit Russia and South Asia, had said that sooner or later the 50-paise price point would have to be increased to maintain a balance in the margins.
New launches
On new products, Mr Wakankar said, "We have several new launches in the pipeline, with more focus on value-added products and variations. We will also introduce a few new categories that will be a part of the broad sweet confectionery market." Of the Rs 1,800-Rs 2,000-crore sweet confectionery market that does not include chocolates, PVMI captures around 30-35 per cent share, thereby making it the market leader in the segment. On growth plans, Mr Sameer Suneja, Head, Marketing, PVMI, said, "While the industry is growing at around five to seven per cent per annum, PVMI has a much healthier double digit growth rate, owing to its wide distribution network." The company will hit the two million-distribution outlet mark by the year-end. On the company's upcoming plant in Uttaranchal, Mr Wakankar said, "The new plant will add significantly to our current production capacities in the gum and the candy segments, as soon as it becomes operational within this month." The company plans to manufacture products such as liquid filled gums, cream fills and certain new brands at the upcoming facility. PVMI already has two other plants in Manesar and Chennai.
More Stories on : Brands | Dairy & Dairy Products | Strategy
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2007, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|