By IANS
Chennai : With its cookies baking into hard cash, the Chennai-based Australian Foods that owns the Cookie Man retail chain has chalked out a major expansion plan that will see its outlets spread to 33 cities in the country.
The Rs.125-million turnover company intends to have these outlets operational by 2008, spread over the northern, west and southern India by 2008,” said S.B.P Pattabhi Rama Rao, president of the company.
“We have signed up with several mall promoters to put up our store. Our plan is to have 75 franchisee owned outlets in five years time,” Rao told IANS.
Presently the Cookie Man’s 18 outlets are located in 10 cities. It operates the stores in three formats – the larger Cookie Man store from 300-500 sq ft, the Cookie Man Kiosk from 100 sq ft and Cookie Man Express from 30 sq ft.
A new commissary with a capacity of 2,000-3,000 tonnes per annum is also planned in central India to meet the increased dough needs after the network expansion, Rao said.
The present kitchen located in Chennai has an installed dough capacity of 4,000 tones per annum and can cater to the needs of 70 outlets.
According to Rao, the Indian premium cookie market is estimated at around Rs.400 million and growing. The segment is witnessing entry of several players like Unibic Biscuits and expansion by existing biscuit manufacturers.
“Our strategy is to sell cookies through an independent outlet. Mass retail marketing has different game rules,” remarked Rao.
Meanwhile, Australian Foods is also gearing up to meet the increased demand for gift cookie tins from the corporate segments during the festival season.
“Nearly 40 percent of our sales is during the Diwali and Christmas seasons and corporate gifting is our biggest market segment,” Rao said.
Agreeing that it was a challenge to find new corporate customers every year as few like to repeat the same gift, he said there are corporate houses which go in for multiple gifting options and our cookie tins find a place there.
In the corporate gifting segment the cookie tins compete with sweet and dry fruits pack, he said, adding: “The advantage we offer is attractive customised packaging which others cannot offer.”
Targeting to double the turnover this year, Rao said the Cookie Man would soon launch 97 percent fat-free cookies and also specific products for diabetics.