Network Foods International is engaged in manufacturing, marketing and distribution of confectionery and cocoa-based products in the Asia-Pacific region and holds 52 per cent share in Lotus Chocolate.

Though facing a stiff competition in the cocoa segment from big giants like Cadbury's and Nestle, which are the two leading brands for cocoa-based products in India, now Lotus also joins the race for cocoa-based chocolates. The company is planning to enter Mauritius and Gulf markets soon.

With a mere adspend of Rs 1 crore for launching these new varieties, priced just Rs 3, 4 and 5, respectively. Mr Badrinarayan, managing director of Lotus Chocolate, said, "We are planning to increase our adspend by another Rs 2-3 crore to sustain in the market."

The company has five per cent marketshare in south and west. The chunk of sales is from Karnataka and Maharashtra, which brings 50 per cent of its sales. The sales from Andhra Pradesh in consumer products amounts to Rs 3-5 crore and Hyderabad brings Rs 1.5 crore to its total share of sales. Last year, the company made a turnover of Rs 13 crore and is projecting Rs 15 crore this year, he said. Lotus was the first to introduce `Chuckles' chocolate for Re 1 in the Indian market, when the market leaders' products priced more, just dedicated for children for all segments.

Lotus which started its commercial production in 1993, has facilities both for processing cocoa beans (procured from Papua New Guinea or Kerala) into its derivatives like cocoa butter, cocoa powder as well as manufacturing chocolate products. With state-of-the-art factory at Daulatabad, near Hyderabad, the production capacity of the plant is 3,000 mt of cocoa beans and its derivatives and 2,000 mt of chocolate products.