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Eastern Condiments to spend Rs 20-25 crore on marketing and selling expenses

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BENGALURU: Indian spice powder manufacturer and exporter Eastern Condiments (ECPL) plans to spend between Rs 20 to 25 crore towards marketing and selling expenses during this fiscal.

The company recently brought on board FCB Ulka as its creative agency. It also has a special arrangement with the agency for media buying.

 “Unlike most other condiments brands, we plan to target rural India, because we see a big opportunity there. As disposable incomes go up in tier II and tier III cities, and more and more family members seek employment, even rural India will have no time to buy the condiments and then spend time processing them for kitchen use. We already see it starting to happen with edible oils and wheat flour,” reveals EPCL managing director Navas Meeran.

Initially, though the push will be BTL, the company is chalking out plans for TV spots on channels like Asianet and Manorama in its home state Kerala. Media plans will be drawn for television commercials in states like Karnataka, Andhra Pradesh, Maharashtra and Uttar Pradesh, the main TG for the company for now. Other states that the company plans to target are Haryana, Punjab as also pan-India.

ECPL’s revenue last fiscal was Rs 560 crore, of which Rs 150 crore came through exports, Rs 125 crore from Kerala and the balance across various markets in India. Karnataka, which contributed Rs 70 crore to ECPL’s revenues is an important market for the company. To that extent, it launched three spice mix flavours that are a part of the staple food in the state – Vangi Bath, Bisibele Bath and Puliogare Bath.

 

“We will have campaigns in the state for these new products,” said ECPL’s other managing director Firoz Mareen. “These products are more to the local tastes and media plans are under process for a campaign here. In spices and condiments we are already the number three player.”

A few years ago, McCormick & Company, the US-based global leader in spices, herbs and flavourings picked up a 26 per cent stake in ECPL. “McCormick estimated the branded and the non-branded size of the spice and condiments market in India as Rs 45,000 crore,” reveals a source at ECPL. “The approximate size of the organized branded market is about $ 1 billion (about Rs 6000 crore),” adds the source.

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