June 1, 2002
Bangalore

Ratna Bhushan
Harish Damodaran
New Delhi, May 31

ITC Foods, a division of ITC Ltd, is all set to introduce ready-to-serve desserts, including vermicelli-based payasam (sevian) and Khubani ka meetha (an apricot-based sweet), in 450-g cans, promising shelf life of up to 12 months.

Mr. Ravi Naware, Executive Vice-President, ITC, and head of the company’s foods business, told Business Line that the desserts would hit retail stores in the coming month and will be marketed under the company’s existing ‘Kitchens of India’ brand of ready-to-eat gourmet foods.

"We are already offering a platter of vegetarian and non-vegetarian curries and dals under the Kitchens of India stable. The objective of launching desserts is to complete the Kitchens of India meal menu," Mr. Naware said, while making it clear that the desserts, similar to the ready-to-eat gourmet preparations, would be targeted at the premium end of the market.

"Unlike MTH or Tasty Bites, which are targeting their ready-to-eat offering towards the popular segment (Rs 40-60 per offering), we have been pricing our gourmet dishes at anywhere between Rs 110 and Rs 250 for 450-g cans. We will follow a similar approach for desserts," he added. Products under the Kitchens of India brand are currently claimed to reach 1,000-odd retail outlets across 25 cities with 10-lakh-plus population. While the company’s foods division has an experimental kitchen in Gurgaon, near Delhi, for sampling and packaging dishes, it continues to sub-contract production through local manufacturers in different cities.

Kitchens of India, which was created by ITC about nine months ago, was expected to contribute a turnover of Rs 6 crore in its first year of operations, Mr. Naware said. The tobacco major’s food division has been split into four categories- ready-to-serve gourmet (under the Kitchens of India brand), confectionery and chocolates, biscuits and cookies, and branded staples.

ITC had recently acquired Candico’s confectionery brand, Minto, and hopes to introduce confectionery and biscuits by year-end. The company had also recently announced its decision to tap markets beyond India with its Kitchens o India brand, beginning with Selfridges in the UK, and is looking at opportunities in Europe, the US, Canada and West Asia.

According to industry estimates, the ready-to-serve foods market is currently Rs 50-60 crore, and expected to touch Rs 250 crore in five years