Pillsbury Kneads Spread Blueprint

Pillsbury India has drawn up strategies to grow its business in India post its conversion into a wholly owned subsidiary of its US parent.

This follows the acquisition of the Godrej group's 43.5 per cent stake in Godrej Pillsbury Ltd, 51:49 joint venture formed in November 1995 between the two.

Tanmay Ganguly, managing director of Pillsbury India, said, "Post acquisition, the company plans to introduce international brands from the parent's portfolio."

Ganguly expects the Indian operations to break even in another 2-3 years. Pillsbury's international portfolio company, a subsidiary of Diageo plc portfolio includes Pillsbury mixes, Green Giant peas, Old El Paso Mexican ethnic food and Haagen Dazs ice cream among others.

 

Ganguly said, "We will be launching Old El Paso by next year. It is a niche product. We also plan to launch Haagen Dazs, the super premium ice cream brand but we don't think that the market is ready for this as of now."

Pillsbury India currently markets Chakki Fresh Atta, cake mixes, Semiya, and Green Giant canned corn.

"Currently exports contribute a insignificant share to the total turnover. However, we will be increasing focus in south-east Asian countries, the UK and the US, Ganguly said.

The Rs 80 crore Pillsbury India is growing at a rate of 30-35 per cent annually, says Ganguly. The gameplan of Pillsbury, an arm of the UK-based food and drinks major Diageo plc, was to gain a foothold in India with its global brands of cake mixes and frozen foods.

It also acquired the distribution network of Godrej Foods when the joint venture was formed. In October 2000, Godrej Foods called off its distribution arrangement and Pillsbury gradually increased its stake in the joint venture to 56.5 per cent over the last nine months, by picking up Godrej's holding.