Will tap fruit chew sub-segment by rolling out 'Jollies': MD
Eveready Industries India Ltd. (EIIL), known best for its dry-cell batteries, announced on Monday its decision to enter the confectionery segment.
The firm said it would initially tap the fruit chew sub-segment through the introduction of a product named Jollies. While the confectionery market is valued at Rs. 9,000 crore, the fruit chew market is estimated at Rs. 400 crore, the company said in a regulatory filing.
EIIL plans to leverage its distribution network in urban and rural areas to become a significant player in this under-penetrated category, the company said.
It also said that the new item would offer a 'quality product to rural India that has limited access to branded confectionery'. The company has a network of 4,000 distributors and reaches towns with populations of 5,000 or more. EIIL is working on an asset-light model in this venture, it said.
"Jollies is the first step in our plan to scale up our FMCG portfolio," said EIIL MD Amritanshu Khaitan. "Candies are a mass market product and can be carried in Eveready vans to reach a million outlets." He said that branding would be the only expense required for this venture.
The company sells more than 1.2 billion batteries and 25 million flashlights annually. Over the last few years, it has expanded its product basket to include energy efficient lighting products, rechargeable devices, and small home appliances.
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