City-based Kutwal Foods Private Limited, manufacturers of processed milk, packaged drinking water and soft drinks has now forayed in the fruit drink segment by launching ‘U’, a fruit drink in multiple flavors.
The company has invested Rs 10 crore for this venture and is targeting sale of Rs 10 crore from the sale of ‘U’ in the first year of introduction.
Prakash Kutwal, chairman, Kutwal Foods Private Limited said, "The fruit drink segment has great potential for growth in India and getting into fruit drink segment is a logical extension to our existing business. The demand for soda-based drinks has gone down tremendously due to health issues.
There is a 15 per cent annual growth in this market. We are expanding our distribution network out of Maharashtra and will appoint over 50 distributors in six states."
‘U’ will reach customers through network of 250 distributors of the company in Maharashtra and Karnataka and through 60 Urja retail outlets in Maharashtra.
With the launch of ‘U’, the company is adding Goa to its distribution network and subsequently intends to enter the neighboring states of Gujarat, Andhra Pradesh and Madhya Pradesh in the next 2 years time.
It has set the target to appoint at least 50 distributors in these states.
