CavinKare sets up ₹60-crore plant for packaged coconut water

CavinKare, a FMCG company engaged in personal care, professional care, dairy, snacks and beverages, has recently begun sales of packaged coconut water in select markets.

The Chennai-based ₹1,200-crore company, which had earlier this year introduced Cavin’s fruit milkshake, a ready-to-serve, dairy-based beverages in different variants, including mango, apple and guava, has set up a ₹60-crore coconut water processing and packaging plant in Erode.

CK Ranganathan, Chairman and Managing Director, told BusinessLine that there is a huge untapped market for coconut water in the country and has huge potential for exports.

“To offer this as a separate category, we have introduced packaged coconut water under Cocoma brand name in 200 ml and one litre priced at ₹30 and ₹145, respectively.

“The plant is located close to the catchment area and the water is aseptically packaged without any preservatives. This ensures that the water tastes fresh and has a shelf life of about nine months.”

“We have big plans and expect Cocoma to contribute significantly to the company’s revenues in the next financial year,” he said.

On the impact of demonetisation on the FMCG segment, he said that a lot of FMCG companies are going through pressure.

The rural economy is cut off as a big chunk of rural market is cash-driven. “When it comes to small sachets, everything is cash in rural and urban areas,” he said.

“In spite of the tough times, we have grown by about 16 per cent last month as against normal growth of about 20 per cent. We hope to close this year with a growth of over 20 per cent,” he said.

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