Chaitali Chakravarty

New Delhi, August 23

From hotels to malls. ITC Hotels is all set to launch ready-to-eat Indian delicacies under an umbrella brand, Kitchens of India. Food connoisseurs can grab a bite when the first offering, Dal Bukhara, hits the retail market for the first time later this month.

So far, the Dal Makhani under the Bukhara brand was available only in select Maurya Sheraton outlets and catered mostly to the huge NRI population.

ITC Hotels, is currently test-marketing Dakshin Dal and Dum Pukht chicken curry made famous by its eponymous chain of restaurants. The chicken curry, sources said, is currently being circulated minus the chicken. Once consumers say they like the taste of the ready-to-eat sauce, ITC Hotels will decide whether or not to add the chicken.

Industry sources said the fancy tins of Dal Bukhara will be priced at Rs.170 each and will target the upper-end working segment. They also added that ITC hotels may have to face stiff entry barriers as the south-based Tasty Bite has made its presence felt with dishes that cater to every palate. Navratan Korma, Mumbai Pav Bhaji, Malabar Mixed Vegetables, Madurai Kesri Halwa can be devoured for just Rs.40 each.

ITC Hotels is not too fazed. Since the branded curries will eventually be transferred to the parent company for retailing, ITC will use its legendary brand building muscle to make a dent in the market.

ITC has already set up a new foods division in Kolkata. The company is still tight-lipped about its plans to expand into a wholly new sector. The company also received approval from its shareholders last year for entering the domestic foods business. Despite repeated attempts, its company spokesperson remained unavailable for comment.

"Dal Bukhara will be first launched in Delhi. The company felt that Delhi is perhaps the most significant food market and Dal Makhani will be well liked by the consumers. Other dishes will follow in due course of time," sources said.

Tobacco consumption is down and ITC does not foresee tobacco to be a major growth area in future. In order to ensure a healthy balance sheet in times to come, the company's dedicated research team is exploring potential growth areas which will be in sync with its core competencies.

ITC is planning to enter the processed foods business with a range that will include atta, confectionery and biscuits. Atta is expected to form an essential part of ITC's new food basket because of the huge potential for growth in this sector.

Even though margins remain thin in this business due to stiff competition from branded players and the neighbourhood chakki, the volumes are usually too attractive to be ignored.

But it may well need all of ITC's efforts to get a bite of this pie, with stiff entry barriers, because all the other major players like HLL's Kissan Annapurna, Cargill's Nature Fresh, AgroTech Foods India's Healthy World and traditional local brands like Shakti Bhog and Rajdhani are already crowding the shelves.