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| Priyagold to launch chocolates in September |
| Press Trust of India / New Delhi Aug 11, 2009, 15:44 IST |
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After successfully launching juices, leading biscuit brand Priyagold is planning to enter the chocolates segment with the long-term aim of becoming a major player in the FMCG food products.
Surya Food & Agro, which has recently added wafers and cookies to its portfolio, will launch chocolates next month, the company's Director Shekhar Agarwal said.
"We hope to launch it in the first week of September as the temperature would come down by that time," Agarwal said, adding that summer is not a good season to launch a product like chocolates.
The company aims to generate sales of Rs 25-30 crore from chocolates, wafers and cookies this year, he said.
According to a Nielsen survey, the chocolate market is estimated at about Rs 1,900 crore and growing at 18-20 per cent with Cadbury being the leader having 72 per cent share. Other major players include Nestle and Amul.
Agarwal said Priyagold would also introduce candy and toffee, with the generic 'Eclair' variety. "We have already completed sample testing and the feedback is good," he said.
To a query on pricing, he said the chocolates would be competitive with more quantity than the ones available in the market. He, however, added that the recent rise in prices of raw materials is denting the margin of the company.
Priyagold has invested Rs 30 crore in the project to install modern machinery for the plant at Haridwar that has a capacity of 10 tonnes per day. The chocolates would be sold under 'Priyagold' brand with a separate sub-brand for each variant, he said.
The company wants to focus on marketing before expanding to other food products so that it gets the return on the investment made, Agarwal said. "We have planned aggressive marketing to increase our penetration in metros and brand awareness in rural areas," he said.
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