Eveready plans to foray into confectionery segment

Will tap fruit chew sub-segment by rolling out ‘Jollies’: MD

Eveready Industries India Ltd. (EIIL), known best for its dry-cell batteries, announced on Monday its decision to enter the confectionery segment.

The firm said it would initially tap the fruit chew sub-segment through the introduction of a product named Jollies. While the confectionery market is valued at ₹9,000 crore, the fruit chew market is estimated at ₹400 crore, the company said in a regulatory filing.

Distribution network

EIIL plans to leverage its distribution network in urban and rural areas to become a significant player in this under-penetrated category, the company said.

It also said that the new item would offer a ‘quality product to rural India that has limited access to branded confectionery’. The company has a network of 4,000 distributors and reaches towns with populations of 5,000 or more. EIIL is working on an asset-light model in this venture, it said.

“Jollies is the first step in our plan to scale up our FMCG portfolio,” said EIIL MD Amritanshu Khaitan. “Candies are a mass market product and can be carried in Eveready vans to reach a million outlets.” He said that branding would be the only expense required for this venture.

The company sells more than 1.2 billion batteries and 25 million flashlights annually. Over the last few years, it has expanded its product basket to include energy efficient lighting products, rechargeable devices, and small home appliances.

A letter from the Editor

Dear reader,

We have been keeping you up-to-date with information on the developments in India and the world that have a bearing on our health and wellbeing, our lives and livelihoods, during these difficult times. To enable wide dissemination of news that is in public interest, we have increased the number of articles that can be read free, and extended free trial periods. However, we have a request for those who can afford to subscribe: please do. As we fight disinformation and misinformation, and keep apace with the happenings, we need to commit greater resources to news gathering operations. We promise to deliver quality journalism that stays away from vested interest and political propaganda.

Support Quality Journalism
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jun 1, 2020 1:28:19 AM |

Next Story