Dry cell batteries major Eveready Industries India Limited (EIIL) today said it is entering the confectionery business as part of its diversification plan.
“Jollies will be launched in the first step to scale up our FMCG portfolio of products,” Amritanshu Khaitan, Managing Director, EIIL was quoted by PTI as saying.
According to a PTI report: Jollies will be introduced in the fruit chew segment priced at Rs 1. The segment is estimated to be around Rs 400 crore and is growing at a rapid pace, he added.
EIIL said that the fast growing fruit chew segment will double in the next 3-4 years and expects to become a significant player in the segment by making the under-penetrated category available across urban and rural India through its deep distribution network.
The company is working on an asset-light model involving outsourcing, and believes it can add significant turnover and profitability with an entry into the segment.
The company has forayed into lighting and small appliances besides hiving off its packet tea business to a joint Special Purpose Vehicle with McLeod Russel.
Claiming that distribution is one of its key strengths, the company says confectionery would provide an opportunity to not only complement the current basket of products but also give an opportunity to offer value-added products to the company s vast up-country distribution.