Launches Galla Thick Mango in Hyderabad.
Chittoor-based exporter of tropical purees, concentrates and fresh fruits Galla Foods Private Limited (GFPL), owned by the promoter family of the Rs 1,300-crore Amara Raja Group, on Monday launched its mango nectar product – Galla Thick Mango — in Hyderabad. This marks the company's entry into the Indian fruit beverage market.
"Around 54 per cent of the consumers in the Indian beverage market are in age group of 16-30. Besides, there is a declining trend in the consumption of carbonated drinks.
This has created growth opportunities for fresh juices, and we would be addressing this fast growing youth segment with our product," Ramachandra N Galla, chairman of Galla Foods, told mediapersons here.
At present, packaged natural fruit beverage market in India is pegged at Rs 1,500 crore and growing at 15 per cent year-on-year, of which mango and mango-blend beverages account for around Rs 1,200 crore.
Stating that the company's primary focus was on dominating the mango category by introducing multiple variants, he said they were currently going through the evaluation process for launch of prepackaged fruit juice combinations including guava and papaya during this financial year.
"We will be launching the product in the rest of Andhra Pradesh, Tamil Nadu and Kerala in the next few months. Our idea is to have a pan-India presence, covering 150 cities and towns, by mid 2009," he said, adding that the company expected Thick Mango to contribute around 12 per cent to its revenues this fiscal.
Thus far, GFPL had invested close to Rs 70 crore in its manufacturing plants situated on 100 acres, closer to the tropical fruit orchards in Chittoor. This covered doubling the pulp and puree processing capacity to 500 tonne a day, besides setting up a new beverage line with 730,000 litres capacity per month.
"The expansion, coupled with the launch of our mango beverage, is expected to fuel our topline to touch Rs 75 crore this fiscal, as against Rs 40 crore last year," Jay Galla, director of GFPL, said.