Shampoos to foods company, CavinKare Pvt Ltd has forayed into the confectionery segment with its liquid candy – Funfills - at Rs 1 price point under the brand Chinni's. The candy comes in five different fruit variants. According to Mr C.K. Ranganathan, Chairman and Managing Director of the company, the candy is made out of fruit pulp and fruit bits.
To start with, the company has launched its products in the Tamil Nadu and West Bengal markets.
The national rollout is set to happen before the end of 2011.
The company sources this product from a “captive third-party” manufacturer in Cuddalore in Tamil Nadu.
According to Mr Sanjay Sachdeva, Business Head, Foods & Snacks, CavinKare, the organised confectionery market in India is approximately Rs 3,000 crore with domestic players such as Parle and Nutrine, and international brands such as Perfetti Van Melle, Cadbury and Lotte competing.
CavinKare plans to come out with more variants of this product and also plans new products in the months to come.
A senior executive of a major confectionery brand says the 2.25-lakh tonne confectionery market in India is so fragmented with equally big unorganised players that it is not so easy to break the clutter and grab a sizeable share there.
Even the market leader – Perfetti Van Melle – has only a 15 per cent share in terms of value, followed by Parle with 13 per cent share. However, given the price point, “rural India will be interested”.
Currently, CavinKare's food portfolio, which includes snacks under the brand Garden, a range of pickles and vermicelli under the brand Chinni's, contributes over 35 per cent of the company's turnover.
Last year, CavinKare posted a turnover of Rs 1,040 crore.