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Wednesday, July 21, 1999

Enkay to sell branded sugarcane juice for Rs 8 

Anamika Rath  
Mumbai, July 20: Following the successful launch of Onjus, a pure natural orange juice two years ago, the Rs 125-crore Enkay Texofoods is in the process of launching a 100 per cent natural sugarcane juice. This would be the first branded sugarcane juice in the market.

Even though the name of the juice is yet to be decided, it is slated for launch in March 2000. While a normal glass of sugarcane juice (200 ml) can be anything between Rs 1 and Rs 5, the branded juice will be priced at Rs 8. Initially, it will be available in the 200 ml pack for in-shop and institutional consumption.

The launch including the advertising and marketing spend would be between Rs 10-15 crore. Says Enkay's managing director Tulsi Goyal: ``This is a totally unorganised market. The sugarcane juice parlours are seen at every nook and corner but many do not like to drink there because of unhygenic health conditions. We want to tap this market.''

To start with, the company is planning a soft launch in Mumbai and Poona which willthen be extended to other cities. For the purpose, the company will be expanding its production capacity by adding two more packaging lines to the existing three lines in Vapi, Gujarat. The cost: Rs 10 crore.

At present, the lines have a capacity to produce 3,600 packs per hour of the one-litre pack, and 6,000 packs per hour each of the 200 and 250 ml packs. With the addition of new lines, the capacity should go up to 24,000 packs per hour of the 200 and 250 ml packs. According to Goyal, while one line might be used for sugarcane juice initially, it can be extended further with the increase in demand and sales.

Onjus as a brand, was targeted at adults while Life targeted the kids segment. Ambience has created the ad for Onjus which says ``Squeeze to Please''. For Life, Enkay roped in Euro RSCG which created the adline ``Thick better mango nectar''. The sugarcane juice is supposed to target both adults and children. It is too early to decide on the ad agency for sugarcane juice, says Goyal.

Recently, thecompany has also introduced the 200 ml (Rs 12) pack for Onjus. It is already available in 250 ml (Rs 14) and one-litre (Rs 44). According to company claims, the one-litre pack is growing at 25-30 per cent per month which is for in-house consumption and the 250 ml pack (out-of-home consumption) is at 25 per cent annualised growth.

It is to be noted that the company introduced Life, the mango nectar in September '98 in parts of Maharashtra including Mumbai and Poona. However, actual promotions for the brand started only in March 1999 when it was rolled out nationally.

The advertising and marketing spend for Onjus and Life has been Rs 6 crore in 1998-99. And, the spend is not likely to increase next year. Says Goyal: ``Advertising is only creating awareness. Otherwise, we don't expect people to shift to mango or orange on the basis of advertising. It will have to be on taste which is why we concentrate more on letting people taste the product.''

Enkay is also focussing in a major way on the distributionnetwork. Currently, it is present in 302 towns covering 2.6 lakh retail outlets. By March 2000, it is expanding to 600 towns targeting a retail network of five lakh outlets. ``The expansion would target mainly B-class towns and talukas where we have not been concentrating in the past,'' says Goyal.

The company is actively present in the export market too. It exports mango pulp and concentrates of banana and guava. In 1998-99, while the export turnover was Rs 50 crore, the domestic market turnover was Rs 75 crore, of which Onjus was Rs 60 crore and Life Rs 15 crore. Enkay is targeting a turnover of more than Rs 100 crore for the domestic market next year while export market would continue to be the same.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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