Cracking the cracker market

After biscuits, ITC steadily moves to work its way into the snack market. But will the strategy work? Only time will tell.

After feasting on the biscuit market, ITC has worked up an appetite for the snacks market with its latest offering "" Bingo. But will Bingo make competitors Frito-Lay and Haldiram's stomach churn with worry, is what remains to be seen.

India consumes more than 4 lakh tonnes of snacks every year, a figure that companies like Haldiram and Frito-Lay have been cashing in on. In fact, American company Frito-Lay, came up with its range of Indian flavours called Chaat Street sometime back to capture a market that enjoys its foods only if they feel international and taste very desi.

Now, keeping that in mind, Bingo has been designed to suit the Indian taste buds and has come out with 16 variants ranging from chips and finger snacks in flavours like Paneer Tikka, Chatkila Nimbu Achaar, Chilli Dhamaka and Natkhat Masala. Besides the usual potato chips like Lay's, Bingo is also competing with the Kurkure variety.

In fact, after catering to a very premium segment of the society with its Kitchens of India and Aashirwaad ready-to-eat foods, ITC is gradually transforming its portfolio to bring into its fold everyone from housewives to kids and businessmen alike with Sunfeast, Pasta Treat and, now, Bingo.

Priced at Rs 5 and Rs 10, Bingo has already seen an investment of Rs 60-70 crore.

Ravi S Naware, divisional chief executive, ITC Foods Division, says, "We are looking at investing Rs 150 crore and upwards in the snacks segment and want to capture at least 25 per cent of the market in the next five years."

ITC Foods already has a fair share of the packaged and branded atta and ready-to-eat category.

However, with Britannia launching its range of sugar-free biscuits, Lite, Naware doesn't overlook a possibility of ITC filling its plate a little more with low-fat snacks.

However, ITC is relying heavily on its consumer research for the launch of its product, for which there has been no test launch or even marketing. All 16 variants of Bingo are ready to hit the northern and western market by the end of this week.

Says Naware: "If we are successful we may set up to four more plants in the next two years, else we might stick to just one plant."