Calcutta, Sept. 3: Balrampur Chini Mills Ltd will soon introduce branded 1 kg consumer packs for the fast moving consumer goods (FMCG) segment.
About half a dozen sugar manufacturers in the country have launched consumer packs mostly for the upmarket segment. The total business of packed sugar stands at about Rs 50 crore, against the industry size of around Rs 22,000 crore.
A top Balrampur Chini official said the company has invested several crores on additional equipment to launch double refined sugar of uniform granules by the year end. Apart from the technical aspects, the company was currently engaged in building up a national sales network to enter the FMCG market.
Balrampur Chini, with an annual production of four lakh tonnes, has a 2.2 per cent share of the 180-lakh tonne sugar industry. Currently Dhampur, Mawana, Daurala and Modi Sugar have launched consumer packs in the north and western Indian markets. Besides, certain small players in the south also have introduced small factory packed sugar.
Usually priced higher at around Rs 22-23 per kg against Rs 17-18 for loose sugar in the traditional retail commodity market, the packed sugar market is restricted to upmarket urban areas in select cities. The official said while over Rs 5 crore has been spent on installation of additional equipment for packaging and upgrading sugar quality, the company was now building a national network of human resources for retail marketing.
He said the management appreciates that being a new concept, sugar branding would take time to stabilise.