Annapoorna Basic Food Range Launched By Hind Lever
The Annapoorna rice and wheat brands are being test-marketed in various parts of the country, while for Annapoorna sugar it will begin soon. The company is already marketing salt under the same brand name.
A new division to manage these products, called the Annapoorna division, has been formed in Bangalore.
Lever sources said the launches were being done in a phased manner and the company is watching the response carefully. We have the distribution clout to sell these products to all parts of the country. We are watching the progress of these brands, explained a Lever spokesman.
The launches are in line with the new company chairman K B Dadiseths emphasis on the development of the basic foods market.
After taking over in August this year, Dadiseth had said the company will be producing and marketing foods that are basic and essential to the Indian palate.
Processed foods like ketchups and sauces are fine, but if they were going to be consumed only on certain occasions, it will not be a big market, he had added.
The company had entered salt marketing some years ago. Rice, wheat and sugar are natural extensions for Lever as the market is underdeveloped and on 90 per cent of the occasions, the products are sold loose.
The Lever spokesman said the thrust on basic foods is central to the companys philosophy of entering businesses which generate large volumes. Lever is also planning to launch Annapoorna spices very soon.
We need a market thats large enough to accommodate our size and investment capacities, explained the Lever spokesman. Lever exports basmati rice called Indus Valley from its Kandla export factory in Gujarat. None of these products are manufactured by Hindustan Lever. The company has set up purchase centres in all parts of the country to buy wheat, rice and sugar and give it for processing.
There are processing units to handle such tasks, and Lever personnel have been deputed to keep an eye on quality at these units.
Though many companies have tried their hand at branding commodities like sugar and rice, few have succeeded.
Tata Chemicals with salt and DCW with wheat, salt and spices are the successful ones.
DCWs Captain Cook brand has established itself in the market, but lacks the distribution reach of Hindustan Lever.
After the merger of Brooke Bond, Levers distribution network will reach over two million outlets in all parts of the country.
The merger is yet to be cleared by the Calcutta high court. The Bombay high court has already given its consent.
The basic foods business is expected to be Hindustan Levers mainstay for the future. Apart from personal products, food is the only other business in the Lever portfolio to show a strong growth. Analysts say the business also has a large potential.