``Given the product quality, the unique packaging graphics, the aggressivepricing and the sizeable marketing investment planned, we expect the brandto clock significant volumes and create a significant branded lollipopmarket in the country,'' chief executive officer of Joyco India Arun Hegdesaid.

The lollipop market currently is an untested category without anysignificant brands. The size of the category currently stands at about Rs 10crore with Cadbury being the only organised player. Joyco's gameplan is toto repeat the `gum' story in the lollipop category with Pim Pom. The launchis being supported through a high intensity advertising campaign.

The company spearheaded the explosive growth of the gum category in Indiawith the launch of its bubble gum brand Boomer in 1995 which is today thesingle largest gum brand with a market share of 42 per cent.

Priced at Rs 2 and available in three flavours -- strawberry cream, caramelvanilla and coffee cream -- the product was launched in Delhi yesterday andwill be rolled out nationally by the end of this month.

The growth of overall confectionary market in India has been a dismal eightper cent over the last two years and is expected to be negligible this yearafter excise duty hike of close to 100 per cent.

"The confectionary industry has been hard hit in this year's budget and wewill have to rethink our price and production cost strategies to squeeze inprofits," Hegde said adding the company had postponed relaunch of soft chewcandy `Bonkers', initially scheduled for mid-2000 due to the excise hike.

Elaborating on the need to prune manufacturing costs, he said theconfectionary industry worked on specified price points like 50 paise andone Rupee and any hike was certain to lead to a considerable marketerosion.

"Hiking prices in such a price-sensitive market is close to impossible. Theonly other option is to either cut grammage or look for other areas wheremargins may be squeezed," Hegde said.

The company is targeting a turnover of Rs 200 crore by 2001, based largelyon its expanding bubble gum market share and a slew of new launches.