Dry cell batteries maker Eveready Industries India Ltd (EIIL) on Monday said it is entering into the confectionery business with its brand "Jollies" and is also hoping to become a major player in the market in the next 3-5 years.
According to it, the confectionery market is estimated at over Rs 9,000 crore and in the first phase, the brand will be launched in the fruit chew segment which is estimated to be around Rs 400 crore.
"The segment is growing at a rapid pace. The company believes that the fast growing fruit chew segment will double in the next 3-4 years and expects to become a significant player in this segment by making this under-penetrated category available across urban and rural India through its robust deep distribution network," it said in a statement.
The city-based company is working on an asset light model and hopes it can add significant turnover and profitability with entry into this segment.
Company's Managing Director Amritanshu Khaitan said "The brand is the first step to scale up our FMCG portfolio of products. We believe that priced at Re.1, Jollies fruit chew will be an attractive offering to Indian consumers who prefer healthier choices."
According to him, candies are a mass market product and can be carried in the Eveready vans reaching a million outlets.
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"This brings in a major competitive advantage for us and we believe we can become a major player in the fast growing confectionery market in the next 3-5 years with only investments required for branding," he said.
With extensive distribution, confectionery would provide an opportunity to not only compliment the current basket of products and give an opportunity to offer value added products to the company's vast up-country distribution, the company aid.
The brand would also provide a offering to rural consumers who have limited access to branded confectionery.
--IANS
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