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Kishore Biyani-led Future Group's food arm Future Consumer Enterprise today launched its oats brand 'Kosh' and eyeing a revenue of Rs 200-300 crore in the next 2-3 years.
The home-grown retail giant, which is targeting a revenue of Rs 20,000 crore from the food and consumer business by 2021, expects 'Kosh' to be a Rs 1,000-crore brand by then. It also anticipates FY17 top-line to be around Rs 4,000 crore
"Oats is an area where we have been working for the last one-and-a-half years. We have set up a Rs 85 crore joint venture manufacturing facility in Sri Lanka. This is one of our bigger brand launches. We are expecting a huge business coming out of it in the next 2-3 years," Future Group Chief Executive Officer Kishore Biyani told reporters here.
"In the next 2-3 years, we should be looking at Rs 200- 300 crore (from Kosh). By 2021, we are expecting close to Rs 1,000 crore," he added.
The Group currently has 27 brands under 65 categories, including food brands like Sunkist, Karmiq, Golden Harvest, Desi Atta, Fresh & Pure, Premium Harvest, Ektaa and Tasty Treat, among others.
"It (Kosh) will be widely distributed. It is one of the largest advertising spends, we are doing for any brand from our stable at the moment. For the next three years, we have an (advertising) outlay of Rs 65-70 crore," Biyani said.
Kosh will be available in four variants -- Instant Oats, Broken Oats, Oats Atta and Kosh Wheat+Oats Atta. The instant oats, broken oats and oats atta are priced at Rs 89 for 500 gm and Rs 170 for 1 kg. The wheat and oats atta are priced at Rs 62 for 1 kg and Rs 270 for 5 kg.
The cereal grain product will be distributed extensively through various modern retail stores across the country. It will also be sold through general trade in 12 key cities initially. The company is planning to export it to UAE, Europe and US.
"This (oats) will be exported. We are looking at UAE, Europe and US. We have already started discussions," he said.
The oats are grown and sourced from Australia and processed at Sri Lanka. Future Consumer has made a significant investment in its processing plant Aussie Oats Milling.
Biyani said the firm will now enter the confectionery category, where it will be launching its products soon.
Future Group expects 70 per cent of the sales in its stores to be from its private labels by 2021 from 35-40 per cent at present.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)