Electrical equipment maker Globe Group of Industries today announced its foray into the Indian snacks market with the launch of its corn chips, 'Cornitos'.
The group's foods division, Greendot Health Foods, has earmarked an investment Rs 20 crore on marketing and expanding its product portfolio with an aim to garner 5 per cent of the estimated Rs 500-crore Indian chips market within one year. The market is currently dominated by the likes of PepsiCo and ITC.
"For the last two years, we have been studying the market, particularly the chips category. It is around Rs 500 crore and we see a lot of potential in it," Globe Group India Marketing Director Vikram Agarwal told PTI.
He said the company's products will hit the market by next week under the brand 'Cornitos', in the North Indian states in the first phase. It plans to pan-India in the next six months.
"Our first brand' Cornitos' is tortilla corn chips, popularly known as 'nachos'. We have invested around Rs 20 crore on developing the product and market research," he said.
Agarwal said the company is looking to achieve a sales of Rs 30 crore by the end of this fiscal and capture a share of five per cent within one year.
At present, the Indian chips and wafer market is dominated by Pepsico's Lay's, ITC's Bingo and Parle's Hippo. And Lays holds over more than half the market.
"We hope to capture around five per cent of the market in the next one year and a sales of Rs 30 crore," he said.
He also said the company plans to expand its product portfolio in the next six months but declined to give further details.
The company currently produces its snacks from its Roorkee plant. Globe Group of Industries was founded in 1978 and makes capacitors. It has a annual sales of Rs 100 crore.
