Mumbai, Dec 24 : Marico Industries is evaluating plans to grow the "Sil" franchise into more food categories. Sil, which is currently perceived to be a product in the jams market, has a tremendous potential for growth, the company feels."Besides jams, Sil is also present in baked beans, mayonnaise, chilli sauces, soya sauces, and such urban-centric categories. However, consumers are not much aware of the presence of Sil in these categories. We are evaluating options of growing the Sil franchise into other food categories where Sil can be built into a strong number one or number two brand. Sil bears an immense scope for growth into the non-jam food categories as well," said Marico Industries CEO (healthcare division) Pranab Datta. Marico is expected to commence the exercise of identifying which markets Sil can be further extended to by early next year. According to industry consultants, Sil has been overtly associated with jams and the performance of the brand could stagnate if the equity is not stretched to other non-jam food markets, and the portfolio not expanded.
"The segments in the foods market are very fragmented and most of these markets are small in value. We will have to identify the right type markets for Sil. We do not want to get into crowded food categories like snacks," said Mr Datta. The jams market, for instance, is valued at about Rs 80-90 crore. The noodles market value stands at Rs 150-200 crore. Sil jams on its own has been performing well. It was relaunched last year under a new packaging and a new formulation with glucose. As a result, Sil's market share in the jams category during the year increased to over 12 per cent from about 10 per cent in the previous year. Sil recorded a turnover growth of about 29 per cent in 1999-2000, over the previous year. Sil contributes less than 5 per cent to Marico's total turnover of Rs 648 crore. This restricts the company's expenditure on advertising and promotion for the brand, which cannot stretch beyond a limit.
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