In a bid to boost its foods business, fast moving consumer goods giant Hindustan Lever Ltd (HLL) has launched atta targeted at the low end segment.
Under the brand name Kissan Annapurna, HLL is currently test-marketing the new product in Kerala, the company said in its annual report to shareholders.
It already has a premium category atta pack of the same brand name. The idea seems to be to attract customers, who buy loose atta, to the branded segment.
Earlier, HLL had said it is foraying into the fruits and vegetables categories which will be sold under one of its existing food brands like Kissan Annapurna, Lipton or Modern.
As part of its expansion plans, HLL has re-entered the spices market under the Kissan brand name. Earlier, it had a presence in spices with its Sona brand. The brand was then under Brooke Bond India, which was a separate group company along with HLL and Lipton India.
The spices market is estimated to be around Rs 10,000 crore of which the branded market is only Rs 600 crore. According to analysts, HLL will face tough competition from established regional players in the market.
Analysts tracking the atta sector estimate that Kissan Annapurna atta has sales of around Rs 70 to Rs 80 crore and is the leader in its category. The other players are Godrej Pillsbury and ITC Agrotech.
Meanwhile, HLL, undertaking a massive brand restructuring, has decided to phase out Captain Cook, another popular brand which came into HLL
