Hind Lever to take on Nestle's Maggi

The new product, called Knorr Annapurna Soupy Snax, is priced aggressively at Rs 5 and has four variants: two chicken options and two vegetarian.

Like Maggi, Soupy Snax will be an in-between-meals snack and will be targeted at all age groups, particularly office-goers.

While the product is in the process of being rolled out in Mumbai, it is likely to be available across the country in a month's time.

Soupy Snax will directly take on Nestle's Maggi, which has an annual turnover of Rs 300 crore. In the past, there has been some competition for Maggi from companies like Indo Nissin, but these failed to make a dent on its sales. Hindustan Lever's entry into the segment could be the biggest threat Maggi has ever faced.

The company is also test marketing a couple of new cooking bases, including mixtures and spices, which could be launched under the Knorr Annapurna range in the near future.

The creation of a new category under the Knorr Annapurna brand is an initiative by Hindustan Lever to drive profitability and growth of its foods division.

Knorr Annapurna is one of the three power brands including Kissan and Modern in the portfolio of HLL's foods division.

While the company recorded a value growth of 7 per cent for its foods division for the January-March quarter, it clocked a 21 per cent increase in growth for the subsequent quarter.

The company's food power brands recorded a growth of 17 per cent during the first six months of 2003.