Lanka firm buys Bakeman's unit

The erstwhile Bakeman's biscuits factory in Patiala, which was closed down in 2002, has been acquired by Sri Lanka-based Ceylon Biscuits Private Ltd.

This is one of the largest state-of-the-art biscuit factories in Asia that provides direct employment to 1,600 people and indirect employment to about 4,000.

Bakeman's Home Products was started in 1977 and ruled the biscuit market for more than two decades. Bakeman's was reckoned as the fastest-growing manufacturer in the 1990s with a 13 per cent market share. The factory during its hay days paid about Rs 30 crore per annum in form of revenue to the government.

A family dispute led to the closure of the company and rendered about 2,000 people unemployed in 2002. The financial institutions invoked their rights and the company went for liquidation as per the directives of High Court of Delhi.

The assets of the company were placed for public auction in February 2004.

Ceylon Biscuits Private Ltd was the successful bidder and bought an 85 per cent stake early last year.

The factory commenced operations in October last year and is now rejigging its presence in Punjab, Haryana, Delhi, Himachal Pradesh, Jammu and Kashmir, and Chandigarh.

The managing director of Ceylon Biscuits Private Ltd, Pankaj Aggarwal, told Business Standard in Patiala in the past two months they concentrated on localised promotion. "We are marketing our products in the name of Munchee Biscuits and have the target to expand our reach to Maharashtra, Gujarat and southern states, by March".

He said the promoters funded Rs 40 crore, of which Rs 18 crore had been pumped in to restart operations in Patiala.

"In FMCG (fast moving consumer goods), the marketing of products requires more funds and so we have earmarked the balance Rs 22 crore for the marketing campaign, to start by March," said Aggarwal.

Aggrawal said the firm manufactured bakery products similar to British ones. He said that they were only waiting for the completion of their distribution network and then would hit the market in a big way.

Aggarwal was confident that the quality they offer was not available to their competitors so they would easily create a niche for themselves in the market.

The company plans to roll out 18 products like specialised cakes, coated and uncoated deposited waffers, deposited cokies, swiss roll coated with chocklate and all products providing value for money.

Aggrawal, a veteran business enterprenuer with more than two decades of experience in the bakery business is open to the idea of exports but prefers to harness the potential in the domestic market before going overseas.

He holds the 15% stake in the unit.He told that he hired most of the employees of the erstwhile biscuit factory and aims to bring the factory to its past glory and contribute to the development of this region.