ITC plans Rs 70 cr biscuit unit in Uttaranchal

ITC Ltd is setting up a Rs 70 crore biscuit manufacturing unit at Haridwar in a step aimed at streamlining the company's food business segment.

"We are setting up a biscuit manufacturing plant at Uttaranchal with a capacity of 2500 tonnes per month to start with and it is expected to be completed by February," ITC Foods Chief Executive, Ravi Naware said here today.

The manufacturing facility will be spread over 10 acres. The plant is expected to be operational by February-March 2007. In the future, ITC would consider building more of its own facilities for other food segments. Currently, all the 110 food products are outsourced.

"Building our own plants is part of risk management and it is important to strike a right balance between own and outsourced capacities," Naware said.

The company has lined several new variants in the biscuit segment to strengthen its product portfolio and increase the market share to 12-13 per cent from about eight per cent now. Naware said spices were also one area where the company was trying to make its national presence.

Naware said the company would focus on brand building, quality and manufacturing.

The company, he said, would spend 25-30 per cent of the turnover in the brand building exercise. The Rs 70 crore biscuit plant at Uttaranchal would be financed from internal accruals.

When asked about turnover for the food division for 2005-06, Naware declined to divulge the figure but said the target for the year was Rs 800 crore.

"We have achieved 100 per cent growth in export turnover," Naware said, without divulging the business. Exports contribute around 50 per cent of the division.

ITC Foods exports ready-to-eat food products to the US, Canada, the UK and other European markets under the `Kitchens Of India' brand.

Meanwhile, ITC Foods have roped in Tamil Actor Surya for the south Indian market and Bollywood star Shah Rukh Khan will continue as the brand ambassador for the company.