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Dabur extends into malted food market

Dabur India is planning to test the waters in the malted beverages market with its new offering – Chyawan Junior, reports Saurabh Turakhia.

business Updated: Oct 04, 2007 20:39 IST
Saurabh Turakhia

Dabur India is planning to test the waters in the malted beverages market with its new offering – Chyawan Junior, after the success and popularity of its Chyawanprash brand.



KK Rajesh, Executive V-P, Dabur India, said, "We are first test launching the product in West Bengal and Maharashtra. Our product is primarily targeted at kids aged between 5 to 12 years."



The market is growing at a rate of 10 to 15 per cent per annum and could well touch the Rs 2000-crore mark by 2010, according to some estimates, he said. "We are looking at a market share of 5 to 7 per cent in the next two-three years. The test-marketing exercise in Maharashtra and West Bengal will continue for six to nine months," added Rajesh.



The company is also embarking on a 360-degree campaign and the first television commercial will be on air by October 23. It will also conduct sampling exercises in over 100 schools. Creative agency McCann Erickson will develop communications for Chyawan Junior.



The size of malted food drinks market is an estimated Rs 1,600 crore, according to Anand Shah, a FMCG analyst with Angel Broking.



GlaxoSmithKline Consumer Healthcare has a lion's share of the market, with over 70 per cent shared by its two brands Horlicks and Boost.



The other brands from the market leader's stable include Maltova and Viva.



Other prominent players in the segment are Cadbury (Bournvita), Nestle (Milo) and Heinz (Complan). Bournvita and Complan have market shares of 12 per cent and 8 per cent respectively, said Shah. He said that both Horlicks and Boost were too well-entrenched to be affected in a big way with Dabur's entry. He, however, feels Dabur has a niche positioning with the ayurveda and herbal element attached to it.



Santosh Desai, CEO and MD, Future Brands, sees the move as a brand extension of Chyawanprash. "I think the effort here is to provide Chyawanprash in forms that are more palatable in order to appeal to the kids and other segments. It is a well thought out move. Most offerings in the milk beverages have been more western in their approach and here we have something traditional," added Desai.