Nirulas Forays Into Consumer Food Retail Segment

New Delhi: | Updated: Jan 22 2003, 05:30am hrs
The homegrown quick-service restaurant (QSR) chain Nirulas has announced its entry into the consumer food retail segment with the launch of a range of jams, sauces, condiments and syrups under the brand Nirulas.

The Rs 250-crore category is currently dominated by multinationals like Nestle, HLL and Heinz. While Nestle, HLL and Heinz are present in the Rs 120-crore ketchup category through their brands Maggi, Kissan and Heinz respectively, HLLs Kissan is the only dominant branded player in the Rs 100-crore jams category.

Nirulas products, initially, will be retailed in Delhi and the National Capital Region. The QSR chain, however, proposes to tap markets other than the Capital after a period of three months. The company hopes to achieve sales of Rs 20 lakh by the end of March 2003, and Rs 5 crore by the end of the next financial year.

The company had been test-marketing these products at its family-style restaurants and pastry shops for some time and based on the consumer response has decided to take the initiative further to the retail market. Towards that, Nirulas has set up a focused dedicated sales team exclusively for the consumer products retail division headed by a general manager.

At present, the range consists of 30 products like jams in strawberry and mulberry flavours, pastes and sauces in chilli and mustard variants, chutneys, syrups, marmalades, red chilli sauce, imli saunth, tomato ketchup and chocolate fudge. According to Nirulas general manager (sales) Rajeeva Shanker, the company also plans to launch pickles soon.

Manufactured at Nirulas food processing plant located at Noida, these condiments and syrups have been certified FPO 1 and are priced competitively, says the Nirulas spokesperson.

Nirulas also plans to create pull for the brand through a print advertising campaign and below-the-line activity initially. It will consider the electronic media after it goes national.

According to Mr Shanker, the company will offer promotions at the trade level and will stay away from consumer promotions for some time.