Tasty Bite to take bigger bite of global market  ( October '9,2001, HBL)

WITH Indian food finding flavour in more global markets, Tasty Bite Eatables Ltd (TBEL) -- a former Hindustan Lever Ltd (HLL) group company -- has chalked out plans to grow both in the international and domestic markets.

The company has a presence in seven countries and plans to have a significant market in about 16 to 17 countries by end-2002. It also plans to cover the entire domestic market by early next year.

The domestic convenience food market in particular, has been seeing activity recently, courtesy the entry of giants like ITC, with its `Kitchens of India' brand of ready-to-serve (RTS) food, not to forget the existing popular RTS items from MTR.

Mr Ravi Nigam, President, TBEL, told Business Line that the company was looking to invest both in the market-place and in capacity expansion of its plant in Pune. Underlining the company's commitment to building Tasty Bite universally, he said the promoters were not averse to diluting equity towards this end. However, he added, that no such plan was afoot at the moment.

The holding company, Preferred Brands Foods (India) Ltd (PBFIL), had in December 1997 acquired TBEL, till then part of the HLL stable. HLL, had in turn got Tasty Bite, as part of the deal, following its acquisition of Kwality Icecreams in early 1996, he said.

The company which had gone to the Board for Industrial and Financial Reconstruction (BIFR) in 1996 came out of the red in March 1999. Ever since it had been charting out a new course for itself both globally and locally, Mr Nigam said.

The US-based natural foods marketing company, Preferred Brands International and UK's private equity investor in India, Commonwealth Development Corporation (CDC), together hold 74 per cent equity in PBFIL, the holding company.

Some of its future investments would go towards its largest markets, the UK, which Tasty Bite plans to enter by end-2001, besides the US, where it already has a presence.

The company would also be looking at expanding its product portfolio with pan-Asian products, including Vietnamese and Malaysian items. At present it has a Thai product range, which it plans to bring into India in another six months.

In the domestic market, TBEL plans to introduce six products in the next six months, with a thrust on the West (Gujarat and Maharashtra cuisines), besides tapping the Northern region, like Punjab. Prices of its existing product portfolio range between Rs 26 and Rs 40 for packets of about 300 gm.

Having clocked a sales turnover of Rs 13 crore for the fiscal ended March 31, 2001, the company expects to end the current fiscal at Rs 18 crore.

With the RTS segment looking to become an estimated Rs 200-crore industry over the next three years, Mr Nigam said more players could be expected to jump into the fray.