New Delhi, May 26: In a bid to secure a bigger scoop of the ghee market, the Rs 200-crore Mahaan Group is launching ghee in the economy pack of 200 ml, 500 ml and 1,000 ml in E-Flute mono-cartons in June 1999. Says Mahaan Foods Ltd managing director, Rajiv Goyal: ``With these penetration packs, we will take the sales of our ghee business from Rs 65 crore to Rs 100 crore in the year 1999-2000.''Presently 500 ml, 1-litre, 2-litre, and 5-litre consumer household packs account for 80 per cent of its ghee sales while the 15-litre packs contribute the remaining 20 per cent. Mahaan is introducing the 200 ml pack for the first time in its portfolio. Interestingly, only Anik Ghee is currently available in a 200 ml pack.
But Mahaan's real competition is not as much from branded players--Amul and Anik--as it is from the unorganised market where ghee is sold loose. Tough competition has already claimed ghee brands like Indana and Safal.
``The new packaging is durable, appealing on the shelf, ensures shelf-life andcuts down on the peripheral costs,'' says Goyal, adding that Mahaan would save Rs 5 on a litre-pack as compared to the existing tin option.The pack is a three-layer mono-carton with an E-Flute corrugation sandwiched in between two Kraft paper sheets which form the structure of the walls of the rectangular container. This structure gives significant strength to the container to maintain rigidity without deformation even when subjected to loads as high as 100 kg.
The first brand to be offered in economy packs, Mahaan Pure Ghee is priced at Rs 166 (1 litre), Rs 86 (500 ml) and Rs 36 (200 ml). The 200 ml packs would be targeted at first time buyers; oil-users who could cook typically Indian dishes like paratha, halwa etc on weekends or occasional users who need ghee during weekends and festive occasions; and rural consumers who consider ghee a premium consumption item.
As Mahaan plans to move beyond the existing 15 states it is distributed in -including the traditional ghee markets of Delhi, Rajasthan,Harayana, Himachal Pradesh, and Madhya Pradesh-it would be investing in brand building. ``In the last ten years we invested a mere Rs 1 crore, but as per our next five year plan, we intend to invest Rs 5 crore in the next five years,'' says Goyal.
Again as per the five-year plan, it is planning to have one merchandiser per three distributors. It is testing the concept with 15 merchandisers already appointed in Rajasthan. In the next couple of years, it will also enhance the number of distributors from 600 to 1500, the retailers from one lakh to two lakh to cover all the states. ``We plan to open in two states every three months with each state having, on an average, around 40-50 distributors.'' In Madhya Pradesh it is increasing the number of distributors to 200 from 50 this year.
In addition to ghee, Mahaan would also be launching chutney in unique 275 gm packs in colours like purple, pink and psychedelic green under the brandname Mahaan Tastemaker. It is also working on the launch of papads and otherproducts in attractive packs.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.