NEW DELHI: In a bid to diversify business interest, tobacco company Gopal Corpco Ltdtoday announced its pan-India foray into theFMCG sector with launch of a potato chips and snacks range.
The company is targeting up to Rs 200 crore turnover from the new business in the next three years.
"To diversify our business interest we have forayed into the FMCG sector. We will go pan India within the next three months," Gopal Group Chairman Gopal Gupta told PTI.
"We launched our products in Lucknow and Chandigarh on a pilot basis in May. In the first year we are benchmarking Rs 20 crore turnover from the FMCG business," he said.
"We expect FMCG business to break-even in three years. Our products, especially the chips, are targeted to tap kids," Gupta added.
Elaborating on the growth expectation from the FMCG business, Gopal Group Director Apoorv Gupta said: "There has been no growth in the tobacco sector in the last five year. FMCG business will have take time to match up to the scale of tobacco business. In the next three years FMCG business will become significant."
The company, which at present has potato chips and multi grain snacks range, is also expanding its products range by adding confectioneries range and namkeens by next financial year.
The company is also looking at investing Rs 150 crore to increase its production capacity for the FMCG business in the next six-eight months, Gupta said.
"We will set up a new a plant for the FMCG business and invest Rs 150 crore in the six to eight months. With the new plant production capacity will go up to 2500 kilo grams per hour," Gupta said.
At present, production capacity at its at its plant in Baddi in Himachal Pradesh is 800 kg per hour. The company is scouting of location for new plant.
Potato chips brand 'Tat-O' are priced in the range of Rs 5 to Rs 15 and multi-grain snacks brand 'Crispetts' is priced in the range of Rs 70 to Rs 100.