Ladakh Foods' arm to foray into cosmetics

Targets first year turnover of Rs 6 crore

Ladakh Foods, manufacturers of Leh Berry "� a seabuckthorn-based juice developed and patented by Defence Research and Development Organisation, is entering the cosmetics segment through its associate concern Seabuck.

The cosmetic products will also be derived from seabuckthorn berry oil extracts.

Seabuck, which is targetting a first year turnover of Rs 6 crore, has lined up a slew of cosmetic products including moisturisers, shampoos, henna, toners, anti-ageing and fairness creams.

For Ladakh foods, the launch of cosmetics would mean additional revenues as the company would vend the oil extracts to Seabuck.

While refraining from projecting the revenues from oil extract sales, Varun Kumar, director of Ladakh Foods, said that the company would begin seabuckthorn oil exports once the 2,000-tonne capacity a year oil extract plant is set up.

For the current year though, the company is targetting quadrupling revenues to Rs 12 crore by extending seabuckthorn to jams, sauces, herbal tea and chyawanprash besides offering additional juice flavours like peach apple.

Varun Kumar said that the defence supplies alone would contribute about Rs 4 crore, while other institutional sales would chip in with another Rs 2-3 crore.

"Ladakh Foods already caters to the requirements of Air Sahara and Alliance Airlines. Negotiations were on with IT companies, star hotels, railways and a few other airlines," Varun said.

Varun Kumar said that Ladakh Foods, over a period of two years, would offer a gamut of flavours that make up the Rs 150-crore tetra-packed juices and nectar market.

"At present, we have no offerings for the orange, mango, grape and pineapple market that accounts for 75 per cent of the juice and nectar market. In India, fresh juice counters still drive the market controlling about 86 per cent, while the tetra-packed juices and nectar account for the rest," he said.