Spanish FMCG player Borges today announced its foray into the Indian market, with the launch of its olive oil brands, aiming to become a Rs 100-crore firm in the country within the next three years.
The $700 million company, which had set up a 100 per cent Indian subsidiary last year, has earmarked an investment of up to 60 crore for marketing its products by 2013.
"India and China are the next big opportunities which Borges is looking into. The Asia-Pacific region is a huge growth engine for the company and India will be a big focus market for us," Borges India Managing Director Rajneesh Bhasin told PTI.
Besides, the olive oil, he said the company will also introduce other products like pop corn, table olive, vinegars and dry fruits later this year.
In the next three years, the company is looking at capturing a 20 per cent share of the estimated 4,500 tonnes of olive oil market in India, which is currently dominated by domestic player Leonardo Olive Oil, NatureFresh Oliante olive oil and Del Monte.
"Olive oil is still a very niche market here. Our target is to grow the category...We plan to achieve a sales of Rs 100 crore in the next three years," he said, adding that the olive oil market is currently growing at 25 per cent annually.
In the next three years, it can touch around 9,000 tonnes from the present 4,500 tonnes per year. By value terms, the size of the market is around Rs 180 crore and can grow up to Rs 400 crore by 2013, he added.
The company has already tied up with several modern retail chains, like Big Bazaar, Metro, Hypercity and Nature's Basket and its products will be available in two weeks time.
"In the initial phase, we are looking only at six metros. Within one year we plan to expand our distribution to 36 cities and towns and have a pan-India presence," he said.
Borges will invest around Rs 50-60 crore on brand building and other marketing activities in the next three years.
"Most of it will be invested on creating awareness, about health benefits," Borges India Marketing Manager (India and Asia Pacific) Vishal Gupta said.
The company said it will be sourcing its products from Spain right now and will later look at starting plantation in the country.
"We are in talks with some of the states, like Rajasthan and Himachal Pradesh, where olive plantation is there. India is a favourable place for olive plantation. Our aim is to become a hub for the Asian countries," Gupta said.
At present, Borges is selling olive oil in three variants of pack sizes between 250 ml and 5 litre priced within the range of Rs 170 and Rs 2,395.
