ITC to enter dairy beverages market in India, eyes 5-10% market share in 1st year of operations
BusinessToday.In May 4, 2019
ITC Ltd is mulling to broaden its reach in the Indian market by expanding its dairy beverages portfolio to the rest of the country by next summer. The company is also looking to grab a 5-10% market share in the first year of its operations.
With the launch of its three fruit beverages under its B Natural brand in PET bottles, ITC is on the expansion spree. The company presently offers nine flavours of fruit juices in tetra packs and has a market share of 9-10% in the Rs 2,000-crore fruit beverages component.
The Tobaccos-to-hotels major's food division is already present in India selling fruits-based beverages for the past four-five years. ITC also offers dairy-based beverages which it soft-launched in the South in December 2018.
With the launch of Sunfeast Wonderz Milk last December, the company entered the ready-to-drink dairy beverages market. The milkshake market in India is around 1,000 crore.
"We would be extending our dairy beverage business and will be launching across the country by the next summer. We expect to clock 5-10% of the Rs 1,000-crore market in the first year of operations," Sanjay Singal, Chief operating officer for dairy and beverages unit at ITC told PTI.
Meanwhile, Singal told the news agency that ITC would focus concentrate only in the Eastern markets for its packaged milk business in the foreseeable future as there is less competition in these markets.
He also said that the company will launch vegetable juices within a month and is also assessing possibilities in the water segment.