EvereadyBSE 0.42 % Industries India (EIIL) has entered the Rs 9,000 crore plus confectionery market through its brand 'Jollies'.
According to a release issued by the company, Jollies will be launched in the Rs 400 crore fruit chew segment during the first phase. It will be priced at Re 1.
Eveready will look to leverage its deep distribution network across urban and rural India even as it follows an asset light model and aims at quick profitability with entry into this segment. "This is the company's first step to scale up its FMCG portfolio," said Amritanshu Khaitan, managing director, EIIL.
He further added that the fast growing fruit chew segment will double in the next 3-4 years and expects to become a significant player in the segment by making the 'under-penetrated' category available across urban and rural India through its deep distribution network.
The company is working on an asset-light model involving outsourcing, and believes it can add significant turnover and profitability with an entry into the segment.
Dry cell batteries major EIIL has forayed into lighting and small appliances besides hiving off its packet tea business to a joint special purpose vehicle with McLeod Russel.
Claiming that distribution is one of its key strengths, the company said confectionery would provide an opportunity to not only complement the current basket of products but also give an opportunity to offer value-added products to EIIL's up-country distribution.
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