After the success of its salt, Tata Chemicals Ltd (TCL) has firmed up plans to enter the other segments of the food additives business.
As a first step, a new strategic business unit - food additives business - was created a few days back with Satish Sohoni as the chief operating officer, Tata Chemicals managing director Prasad Menon said.
He added that while at present the division just includes salt, the portfolio would be expanded within the next couple of months.
“We expect to double the size of the food additives division from the current Rs 240 crore within the next five years by launching new products and also by focussing on exports,” Menon said. He was speaking on the sidelines of a conference organised to announce the second edition of its ‘Desh ko Arpan’ programme.
Menon said that the future product portfolio could include salt variants, pepper, baking soda or even spices.
He, however, added that the company has not firmed up any plans as yet and neither has it started any test marketing on other product categories.
He said that the company was, at present, test marketing crystal salt in the south and would look at solar salt as well in future.
The company is also planning to increase thrust on exports and is currently studying the neighbouring markets for exporting salt.
He, however, said that no decision has been reached as yet. Out of TCL’s turnover of Rs 1,800 crore during 2002-03, Tata salt accounted for a turnover of Rs 240 crore.
Menon claimed that it was the market leader in the salt category with 39 per cent market share in the branded salt market.
While the total salt market is estimated at about 5 million tonne, the branded salt market was only 1.6 million tonne, out of which the national brands accounted for only about 800,000 tonne.
Under its Desh ko Arpan programme, in association with CRY, the company had raised Rs 33 lakh last year in a period of one month.
The money was raised by contributing 10 paise for every kg of salt sold to the education of underprivileged children.
This year, the firm has extended the programme to two months and the money raised will be used to support 6 child development initiatives across the country, Menon said.