Hard-boiled confectionery to witness action
By Venkatachari Jagannathan | 21 Jul 2001
It is going to be ‘dishum dishum’ in the Rs. 1,000 crore per annum confectionery market. The country's third largest confectionery manufacturer (18,000 tonne per annum-tpa) New Delhi-based Joyco India recently launched its international brand Solano to signal its entry into the Rs. 250 crore milk hard-boiled confectionery segment.
The company aims to clock a turnover of Rs. 50 crore in the very first year of launch by selling around 4,000 tonnes. The other major brands in this segment are Nutrine's Mahalacto from Nutrine, Alpenliebe from, Perfetti and Lacto King from Parry Confectionery.
Currently `Mahalacto' leads the market selling around 2,000 tpa while it is `Alpenliebe' that ranks first in terms of value.
According to Mr. Arun Hegde, managing director, Joyco India, the company will soon unleash Rs. 7 crore media campaign - mainly television commercials- for Solano. A heavy media spender, Joyco India burnt Rs. 20 crore last year on promotion and this figure is expected to go up by 25 per cent this fiscal.
"The Solano campaign is going to be the largest ever by an Indian confectionery company. The aim is to make it as one of the top five brands in the market," claimed Mr. Hegde.
Launching the brand initially in south Mr. Hegde said that the brand would go national soon. "It will be available soon in all the 1,500 towns and 4 lakh retail outlets the company currently services," he remarked.
The milky caramel flavour Solano is priced at 50 paise per piece and offers retailers a margin of 20 per cent. Joyco India in addition offers 7 days credit period to its distributors.
Ever since Joyco International, Spain bought out Dabur's 49 per cent stake in the erstwhile General de Confiteria in 1999, the renamed Joyco India has been increasing its market presence by expanding capacity and launching new brands.
Of the total Rs. 75 crore that has gone into the project, Rs. 25 crore (Rs. 10 crore for manufacturing of Solano alone) was infused during 1999-2000 into its Himachal Pradesh plant. The company's other brands in the market are Boomer, Bonkers, Donald Bubble Gum, Donald Candy and Mickey Toffee, Aqtimint, Pim Pom and Solano Coffee Bean.
Capturing 10 per cent market share in the overall organised confectionery market Joyco India commands the largest mouth share in the bubble gum market. The company has a captive gum-manufacturing unit to take care of its gum needs. Though parent Joyco International has a sum manufacturing unit and sells the same to other players abroad, Mr. Hegde is of the opinion that Indian market is yet to mature to that level.
Joyco International's other brands are, Bang Bang, Trex, Ta-Ta, Dinkin, Lico del Polo in gums, After Dinner, Chimos, Chunkys in candies and toffees and Duvaliin, Lunctas and Dunketas in the chocolate segment.
