ITC aims for 14 per cent share in the biscuits market
By Our Corporate Bureau | 23 Jul 2004
Chennai: The latest entrant in the Rs3,000 crore organised segment of the Indian biscuits industry, ITC Limited is aiming at a 14 per cent share in the in three years time. The overall market size — organised and unorganised — is estimated at around Rs5,000 crore with an 8 per cent growth per annum.
It may be recalled ITC entered the biscuits market in July 2003 with its glucose, arrowroot and cream biscuits.
According to Ravi Naware, divisional chief executive, foods business, the strategy to achieve that would be launching products to fill every product segment, price point and heavy promotion. "We will soon launch cookies, crackers and other varieties," he says.
As a part of the strategy, ITC has entered the Rs200 crore, 20,000-tonne milk biscuits segment with its Sunfeast Milky Magic product. The unique selling proposition (USP) of the product is that it is made from cow milk. ITC has tied up with Aavin, the co-operative milk producer in Tamil Nadu.
Launched first in Chennai (70 per cent of the milk biscuit market is in Tamil Nadu), ITC will market the product in other markets in a phased manner. The product is competitively priced at Rs7/100 grams and Rs10/150 grams.