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Godrej eyeing new product category in food drinks segment

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Godrej eyeing new product category in food drinks segment

The foods division of Godrej Industries Ltd (GIL) is eyeing new categories in the processing foods sector. The company, which is already marketing fruit drinks (Jumpin) and nectars (Xs), is now toying with marketing mango pulp in consumer packs and milk-based drinks such as soya milk.

Godrej is already exporting mango pulp and supplying to major beverage companies including Coca-Cola India. Godrej currently manufactures 5,000 tonnes per month of mango pulp and about 215 kg of asceptic packs.

Apart from tapping potential demand for the new products, the strategic intent behind Godrej’s move is to utilise its tetrapak facility at Mandadeep in Bhopal to the fullest and throughout the year. Interestingly, Godrej is already contract-manufacturing Maaza drink (in tetrapaks) for Coca-Cola India and Kissan tomato puree for Hindustan Lever Ltd.

Meanwhile, in a renewed focus on its Jumpin brand, Godrej has decided to shift focus to exports and institutional sales rather than retail market where it claims to have held on to its market share of 10 per cent. The brand has apparently not grown in the last two years owing to onslaught of carbonated soft drinks and mineral water brands. The company will be exporting Jumpin to Maldives, Sri Lanka and Bangladesh.

The two fruit drinks together contribute 25 per cent or Rs 35 crore to the food division’s total turnover of Rs 125 crore. The division pulled out of red last fiscal, earning Rs 1.8 crore net profit. It is an offshoot of the erstwhile joint venture company Godrej Pillsbury which was called off and merged with GIL last fiscal.


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