New Delhi, Oct. 23
THE Rs 1,100- crore organised confectionery market has another entrant
jostling for shelf space and consumer’s attention.
ITC Foods, the recently set-up foods division of tobacco and hotel
major ITC Ltd, is in the process of rolling out its second confectionery product in the
domestic market.
Candyman, as ITC’s new confectionery brand has been named, is
being made available at a price point of 50 paise per unit. "To begin with, the brand
has been rolled out in Tamil Nadu and Uttar Pradesh. Candyman is currently in the process
of being taken nationally. The idea is to leverage the extensive distribution network of
ITC across the country," the company spokesperson told Business Line.
This development comes about four months after ITC’s food
division rolled out its maiden confectionery brand- Minto, which it had acquired from the
Delhi-based Candico earlier.
Candyman was being made available in two variants- Wild Banana and
Mango Delight, the spokesperson said.
With two brands in its portfolio now, ITC’s confectionery division
is a serious contender in the market. Established confectionery players include Perfetti
Van Melle, Nestle India, Hindustan Lever and Joyco. While Perfetti Van Melle, Nestle and
Joyco have a comprehensive basket of confectionery brands, HLL muscled its way into this
market last year with the introduction of Max hard boiled candy in three variants.
Given that confectionery is a large- volume, low-margin business,
industry analysts point out that it would take ITC’s confectionery business a minimum
of two years to break even.
ITC’s food division had shifted its marketing and research and
development offices from Kolkata to Bangalore earlier this year. The tobacco major’s
foods 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.
Earlier this year, the company had forayed into the highly fragmented
branded staples segment with its Aashirwaad atta brand.
The company’s ready-to-serve Kitchens of India brand of gourmet
foods comprises vegetarian and non-vegetarian dishes including Dal Bukhara, Chettinad
Chicken, Dal Dakshin and Baingan Mirch ka Salan. Industry estimates peg the
size of the ready-to-serve foods market at Rs 50-60 crore, which is expected to touch Rs
250 crore within five years.
Another market where ITC’s foods division is expected to foray
into is biscuits.
ITC Foods has also announced its decision to tap markets beyond India
with its Kitchens of India brand.
