Nutrine pushes for share in Re 1 segment

Nutrine Confectionery Company plans to launch 'Nutrine Eclair Hazelnut' in its effort to expand its marketshare in the Re 1 segment. The segment is presently dominated by Cadbury.

Addressing a press conference here on Monday, B L Venkateswar, senior vice-president, marketing and sales, said, "We are confident of capturing 20 per cent of the market share of the segment in a short time."

"Presently we enjoy a 33 per cent market share among Eclairs with Nutrine Eclairs priced at 50 paise. But with the entry of Nutrine Eclair Hazelnut positioned at the Re 1 segment, dominated by Nestle and Cadbury, we expect to graduate from the 50 paise to Re 1 segment," he added.

As a part of its marketing strategy, Nutrine plans to position its Eclair Hazelnut in 6,000 outlets in Bangalore in six months. The product will also be available in over 14,000 outlets in the state in a year's time.

At present Nutrine Confectionaries has a market share of 70 per cent in the rural areas on the back of the 25 paise and 50 paise sweets.

The company's decision to go up the value chain is prompted by the fact that there has been a gradual consumer shift from the 50 paise to the Re 1 segment in major and mini metros fuelled by higher incomes.

Simultaneously, "In order to meet the changing consumer demand, the company is reinforcing the existing 50 paise offerings with different flavours," said Venkateswar.

Nutrine's portfolio includes products which have no competition like Naturo Fruit Bar and its soft-centre candies Nutrine Honey Fab and Nutrine Gulkhand.

The whole chocolate segment, comprising both the organised and the unorganised sector in India is valued at Rs 1,800 crore.

The marketshare of the organised sector is Rs 1,200 crore and Nutrine's market share is 28 per cent of this.

In volume terms, Nutrine commands a 50 per cent market share, and its Nutrine Eclair is valued at Rs 65 crore. "Nutrine has been growing annually at 20 per cent, compared to the entire confectionaries segment growth rate of 5 per cent."

Venkateswar said Nutrine exports 8-10 per cent of its production mainly to Australia, New Zealand, Asia Pacific and the West Asian countries. As per the MRP sales the company's turnover is around Rs 336 crore.