to enter snack foods
3 January 2007
make good business sense. Pepsico earns Rs900 crore
a year from them and will invest $200 million dollars
on expansion over the next three to four years. Now
clock and lamp maker Orpat plans to enter the snack
foods market, reports CNBC-TV18.
Orpat group is the world's largest clock maker, India's
top vitrified tile maker and number one carbon fluoroscent
lamps manufacturer. But Orpat wants more. It is eyeing
the Rs2,000 crore namkeen and wafer market, which is
dominated by over 1,000 small fries and 25 big ones
such as PepsiCo's Frito Lay.
think that whenever we enter a product, we target being
number one and God-willing we would be there" says
Jaysukh Patel, MD, Orpat.
over two to three years it will set up 40 to 50 factories,
two in each state. That's far more than market leader
PepsiCo's three plants, which supply about 45 per cent
of the market. Orpat sees strength in numbers, large
volumes and low prices as essential ingredients in its
recipe for success.
how it reached leadership positions in other sectors
in remarkably short timeframes. So it seems that big
is in and small is out.
there weren't any big players but only smaller players.
Today they are only 50 per cent and they are getting
wiped out at a rate of 5 per cent every year,"
says Chandubhai Virani, managing director, Balaji Wafers.
believes small players will account for just 10 per
cent of the
market. But Orpat is not saying much. It's hatching
crunchy plans and believes it can serve up another success.
But, of course, the market will decide that.
reports on foods/beverages