Triveni exits sugar, enters other packaged products

Lower realisation on sugar owing to an output glut is driving sugar manufacturers to explore new areas of business.

Leading sugar and turbine manufacturer Triveni Engineering and Industries (TEIL) has ventured into packaged sooji, maida and besan under its Shagun brand.

The company already has a presence in the branded sugar category since 2002, with the same brand. "We are doing a marketing test in Delhi and the national capital region, and the response is encouraging. The products will shortly be launched across north India and in Kolkata," said TEIL Vice-President Nikhil Sawhney.

The launch of these three commodities was aimed at strengthening the Shagun brand, he added.

The products would be sold through the 33 Khushali Bazaars that the company has in Uttar Pradesh and Haryana. In addition, the company plans to make these products available in retail stores across north India and Kolkata. The products will be available at the maximum retail prices: Besan (500gm for Rs 35, 1 kg for Rs 64), maida (500 gm for Rs 15) and sooji (500 gm for Rs 16).

The company has outsourced the procurement and packaging of these products to another company, which will ensure quality for TEIL. It will use the existing marketing networks to sell these products in northern states of Punjab, Haryana, Himachal Paradesh etc.

"The retail format in the country is evolving, and by the time it matures, we look to be in a position to cater to the large demand from organised retailers," Sawhney said. The largest domestic sugar producer Bajaj Hindusthan has also initiated a project to produce wood substitutes such as particle boards and MDF (medium density fibre) boards from bagasse and internally produced power and steam.