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   The Hindu Business Line                                                          August 30, 2001
   ITC ready-to-eat foods on shelves


Our Bureau

NEW DELHI, Aug 29

The `signature dish’ of ITC’s Hotel Maurya Sheraton and one of the dishes extolled by former US President, Mr Bill Clinton, dal bukhara, will now be made available at retail stores, courtesy the Kitchens of India.

A brand from the ITC stable, Kitchens of India marks the tobacco – major’s foray into the packaged foods business. The first few ready-to-eat products were launched recently through retail outlets in the Capital.

Mr. Ravi Naware, Executive Vice-President of ITC Ltd and the head of its foods business, told newspersons that the company saw a huge opportunity in the segment, considering that food expenditure in the country was about Rs.1,00,000 crore. The packaged food segment was growing at about 30 per cent per year, he said. While the company started out with a few products such as dal bukhara, dum pukht and dakshin’s chicken chettinad, he said more exotic dishes would be added to their portfolio. He said their chefs would explore the vast repertoire of India’s heritage cuisine.

Subsequently, the chefs would recreate the exotic foods and flavours of the country which would then be packed for consumption.

Mr. Naware told Business Line that the company hoped to complete the roll-out of its products by the end of this fiscal. At present, it was sub-contracting its production through local manufacturers in different locations. He added that the quality stipulations and other parameters would be monitored by ITC professionals.

About two years down the line, he hoped to set up a manufacturing base in the country. He said the food business would be run as a branch of ITC Ltd and, possibly in the future, it would be spun off into a full-fledged division.

The company is looking at making the product available through online booking, but that would be at a later date.

However, exports are on the cards for these premium pacakged foods. The company is looking at markets in the US, UK, Europe, West Asia and Australia – "where there are large segments of the Indian Diaspora".

The company looked to clock domestic sales of Rs 4 crore and exports of about Rs 30 crore, by March 2003.

Priced at Rs 190 for a 450 gsm pack and at Rs 380 for a twin pack, he said the products would be shelf-stable for about a month, thanks to the aseptic technology that they use.

Competition in the segment for Kitchens of India would be in the form of MTR’s similar products, though the official pointed out that MTR’s products were in the popular segment – with prices in the region of Rs 40.

Promising `A feast for the senses’, which is also the brand’s tagline, the company would promote its products through limited advertising, direct mailing and aggressive merchandising, he said.

 
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