Unibic Biscuits India targets Rs 300 million turnover for 2006

MAM
Nov 23 /

Unibic Biscuits India targets Rs 300 million turnover for 2006

BANGALORE: In a premium biscuit segment market that‘s just worth around Rs.5 billion in India and growing at about 20 per cent annually, the five-month old Australian company Unibic Biscuits India (UBIPL) claims that it is gearing up for Rs.300 million turnover for the calendar year 2006.

Unibic plans to ramp up the turnover to10 per cent of projected Rs.10 billion over the next few years. The overall biscuit market (including the unorganized players) is worth around Rs.50 billion in India currently. Parle, Britannia and ITC are the biggest players in the premium biscuit segment with Britannia‘s Good Day being the market leader.

 
 
UBIPL MD, D D Saxena revealed some of the plans which are still at the nascent stage while speaking with Indiantelevision.com today during the launch UBIPL‘s third product in India - Butter Cookies. The other two existing products are Anzac and the Bradman Chocolate Chip Cookie. Saxena plans to introduce 10-12 different varieties from their Australian parent company‘s kitty in India..
 

 

Saxena disclosed compay‘s game plan for future growth in revenues. UBPIL plans alliances with food chains. UBPIL already manufacture two types of cookies for Café Coffee Day (CCD). Another two varieties are to be added to this selection. An exclusive five-year contract has been signed with CCD. This association has already contributed almost Rs.10 million over the last five months in terms of sales.

Certain processes, which were earlier being carried out in Australia, will be done here because of labour arbitrage - Indian labour is cheaper than that in Australia, US and Europe. By sourcing from India, costs can be cut down by as much as 40 per cent in some cases.

Australian chains Woolworth‘s and Coles are potential customers as are UK‘s Tosco‘s, Salisbury, Marks and Spencer‘s, US coffee chain Satrbuk‘s. Unibic Australia already supplies to these companies house brands, UBIPL could be a substitute supplier. Institutional tie-ups with BPO‘s, corporates are another avenue that Saxena is exploring.
 

Saxen also plans to add Celebration tins to the Indian market to be sold durng the festival season. In a country such as New Zealand having a population of around 3.5 million, almost a million tins are sold explained Saxena, who is initially targeting around 30000 tins annually in India. Saxena expects domestic consumption to be about 60 per cent, 15 per cent would come from strategic tie-ups in India (similar to CCD) and about 25 per cent would be through exports.

Currently the marketing strategy has been limited to events such as walkathons, associating with sports - one of which was bringing the UNIBIC Bradman Cup 20/20 tournament to India, which was held at Bangalore in August this year. UBIPL has a three-year tie up with the Karnataka State Cricket Association for this event.

Soon regional channels in South India would start airing UBIPL TVCs. By March 2006, Saxena expects to have TVC‘s aired on national channels. A sum of Rs.75 million is likely to be earmarked for the ad campaign for 2006, of which 60 per cent would be towards TVC‘s, the rest would be divided between other media including that on foreign shores. Presently UBIPL create their own ads, which are shot by independents, and plan to buy off media time from media agencies. A comprehensive plan for the campaign would be ready by the first quarter of 2006.

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