Nature Bio Foods Ltd, a 100 per cent subsidiary of LT Foods Ltd, plans to launch branded organic staples under the brand name of Ecolife.
The brand is expected to contribute Rs 3-5 crore to the company's topline this year, Mr Ashwani Arora, Joint Managing Director, LT Foods, told Business Line.
Ecolife products will be first launched through the modern trade route in 10 metro cities after the first quarter of this fiscal 2011-12 , Mr Arora said.
The brand will cater to a group of niche, health conscious customers who do not mind paying a premium of 40 to 60 per cent for organic products. The products will be 10 to 20 per cent costlier than those of its competitors to ensure quality, said Mr Arora.
Initially, rice, flour and pulses will be sold under the brand, but gradually cereals, oil seeds, spices, nuts and dry fruits will also be available. The company plans to roll out rice-based and multi-grain organic snacks six months down the line.
Market size
While the global market for organic food products is $ 60 billion, growing at 15-20 per cent annually, the domestic market is pegged at Rs 30-40 crore. The products are mostly consumed in cities such as Bangalore, Mumbai, Delhi, Chennai, Kolkata, Pune, Ahmedabad, Jaipur and Lucknow. Some of the other companies in this segment are Sunstar, Kohinoor, Bush Foods and KRBL.
LT Foods expects a turnover of Rs 1,200 crore by the end of this fiscal. Last year, the company reported a turnover of Rs 1,100 crore. Of this, Rs 550 crore was from exports. The company also plans to enter Denmark, Sweden and the UK markets with its rice, soyabean and sesame products.
The Rs 1,200-crore company is targeting Rs 3-5 crore for Nature Biofoods in the first year, which is growing by 10 to 15 per cent annually and contributes two per cent to LT Foods' business. Its organic farming projects in North India employ close to 5,000 farmers.
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