Brand
Brand
Ahead of what's next
Mumbai, Progressive Grocer | Feb 17, 2016
Samir Somaiya, CMD, Godavari Biorefineries, which has entered the branded foods category by introducing the ‘Jivana’ brand for its sugar, salt and turmeric products, speaks to Progressive Grocer about the growth prospects of his products and its plans to expand the reach across markets and consumer segments
Tell us about your foray into the food industry. How did a maker of biofuels and specialty chemicals come into the food business?
Our roots have always been in agriculture. We started in 1939 as a company that processed sugarcane to make sugar. Over time, we also took up the manufacture of ethanol, biofuels, renewable power and chemicals to our product mix. But even now, sugar and agriculture are an important part of our business. We have also been in the business of making salt for many decades now. Recently, we decided to enter the branded foods category by introducing our ‘Jivana’ brand. Our sugar, salt and now turmeric products will be sold under this banner to consumers.
You started with salt and sugar and now into turmeric. Are there any special and particular reasons for getting into these categories?
Sugar and salt have been our ‘bread and butter’ for many decades now. And our products have always been acknowledged in the wholesale market as having good quality. We thought the branding of the same would be a natural extension of our offering. We have always promoted the growing of turmeric among our farmers as a rotation crop and, in some cases, as an inter-crop. In our country, farmers have smaller land holdings, and it is important for them to be able to get good value from their land. Th is crop combination would add value to the farmer’s income. As the programme grew, we naturally thought of buying the turmeric, processing it, and offering high quality turmeric to our ‘Jivana’ consumers. Turmeric is also among the most commonly used spice in most Indian kitchens because of its medicinal properties, which dates back to the ancient Vedic culture of India.
What is special about your products in these categories that sets you apart from your competitors?
We look at our foray into food products in two ways – creating access for farmers and food producers to the retail markets and providing individual consumers with food, which has been grown through sustainable means and is of good quality. This is very important to us. In all the areas that we work in, we maintain a close relationship with our farmers, and work to advance their social and financial sustainability. Our processing is also done in very good facilities, so that the product is hygienically packed, and is pure.
What is it that makes Jivana more appealing to consumers?
Jivana products appeal to the customers as they are of good quality, come in attractive packaging and at a competitive price. These factors ensure consumer trials and repeat purchase for Jivana products.
Which consumer segments and demographics are your products targeted at?
Our target group is decision makers for grocery purchases in Indian homes. In 98% of households, this target group comprises women. We started with branded sugar and salt, and have recently launched turmeric. Since these are the most basic food items in every kitchen, the opportunity for growth is limitless. We aim to be the favoured brand of foods in most if not all Indian kitchens. In recent times, SEC A, B & C homes are seeing an active shift from loose to packaged/branded products and this segment is going to grow exponentially. We are targeting this consumer household. Placements have been done in stores catering to these kinds of homes in metros, mini-metros and class I towns across a few states.
What is the retail presence of your brand in these product categories?
Jivana is present in general & kirana stores across the states of Maharashtra, Gujarat, Rajasthan, and Karnataka across metros and mini metros and a few class I towns.
What is the consumption pattern, growth rate and market size for your product categories?
Jivana sugar was launched in January 2015, followed by Jivana salt in April 2015. We have seen very encouraging response for a new brand. We have recently been nominated as one of the fastest growing brands of 2015. Turmeric was launched in January 2016.
Sugar sells the most as consumption is the highest. The branded sugar space has few large players and a very large loose sugar market open for capturing. Salt, though a challenging product due to very low costs/margins, is also an amazing product category. Jivana salt has seen good growth as it competes well on price with the market leader TATA and several regional brands across the target cities. An increase in sales will make it more cost effective.
How do you see the demand for these products in the future?
Branded retail foods/ staples is a sector that is going to grow leaps and bounds in the coming years. Consumers are choosing better & safer food options for their homes. Th is translates to choosing packaged/ branded foods over loose. Like water, atta, oil, etc., most commodities will switch to being branded in the next few years. We expect good growth for Jivana sugar and salt, and are also confident about expanding into the spices category.
How do you see the growth trends for your products in urban versus rural areas?
We are a new brand. The major markets to start with for any new brand would be ones that can bring in the volumes. We have started with metros, mini metros and class I towns and have seen good growth there. Our smaller SKUs are seeing good response in smaller towns too. Our plan is to have a systematic growth plan for both urban and rural areas.
What are your plans for strengthening the market share and consumer reach of your products?
Our promise is “purity in foods”. The aim is to provide good quality foods for Indian homes and that will remain our primary focus. Jivana Foods would be synonyms with purity, quality and consistency at all times. To strengthen market share and reach, aggressive placements are the first step followed by a clever marketing plan, as also relationship building with our channel partners and retailers. All these together will ensure our sustained growth.
Which are important factors for the retail pick up of products?
Good quality of products, aggressive placements, right price and effective promotions/ retail schemes will ensure that Jivana is purchased repeatedly.
What is your strategy for retail outreach?
Jivana comes from The Somaiya Group, a company known for its honesty, strong values and a will to uplift the community. Our strategy is simple – to make and retail foods that we want our country to eat and flourish with. Basic foods like sugar, salt and spices are bought from the neighbouring grocer so it is very important to be present there. The sheer number of retail/ kirana outlets bring in the volumes and reach. Visibility in modern retail is also important, so being present in the Big Bazaars, D-Marts and Reliance stores, etc., is also imperative. We believe that good quality products are the first stepping stone to building sales, followed by aggressive placements, good promotions for the retailers as well as consumers.
As a young brand, what do you think will be the challenges in distribution?
Price sensitive commodity brands, despite having a good distribution, can be quickly replaced by competitive brands. Th e challenge in distribution is to be present on the retail shelf each time. Distribution is cost intensive and there is high attrition in sales, which can be minimised by creating volumes and a good incentive structure.
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Godavari Biorefineries Ltd. launches ‘Jivana Turmeric’
Jan 20, 2016Godavari Biorefineries Ltd. has entered the spices category under its food brand ‘Jivana’.Godavari Biorefineries Ltd. launches Jivana Turmeric after their successful foray with Jivana Classic Sugar, and Jivana Refined Iodised Salt.
Jivana turmeric is hygienic, pure, and rich in colour, flavor and texture with freshness intact.It stimulates protein digestion, and is an excellent blood purifier. The packages are available in 50gms, 100gms, 200gmsto cater to the demands of various segments. It will be available in Maharashtra, Gujarat, Rajasthan and Karnataka.The turmeric is finely packed in high quality packaging material such that it maintains its freshness and nutritional value.
Jivana turmeric is manufactured and packed in Bisnal Village, Bagalkot
Speaking on the launch`Jivana Turmeric', “Mr. Samir Somaiya,CMD Godavari Biorefineries, said the company has come out with two productsJivana Sugar, andJivana refined iodised salt which are the two most basic ingredients used by the Indian housewives in their cooking.The company has gained valuable experience in the foods segment after the launch of `Jivana Salt and Jivana Sugar' and the entry into spices segment was a natural extension of the foray into the market”
About Godavari Biorefineries Ltd
Godavari Biorefineries Ltd is one of India’s leading and sustainable company producing sugar, other foods, biofuels, chemicals, power, compost, waxes, and related products, using sugarcane as the primary feedstock. Our aim is to engage in research and innovate by continuously making new products and entering new markets in order to derive the maximum value from our feedstock. Our research areas include sustainable farming, transformation of biomass (chemical, mechanical and biological), product development, and process optimization. Founded in 1939, we have been pioneers in the growing, processing, and utilization of biomass to make a wide variety of products.
We are now working on the next generation bagasse-based bio refinery and also the biotransformation of sugar to biopolymers.
For more information, email at: consumercare@somaiya.com or call on: 022-61702111
For more information, please visit: www.somaiya.com
For media queries: aarohancommunications2@gmail.com
Tel: Meera: 9821156976/ Shirin: 9769229595
Click here to download the pdf file.
Godavari Biorefineries Ltd. Launches ‘Jivana Iodised Salt’
Oct 02, 2015Homemakers can now benefit from both Jivana sugar and Jivana salt.
After the success of the Jivana Classic Sugar, Godavari Biorefineries Ltd. has launched Jivana Refined Iodised Salt. Both Jivana salt & sugar are certified under Food Safety Standard Authority India (FSSAI)
Jivana Iodised salt comes from Kutch and is harvested from saltpans using safe & natural solar evaporation methods that help retain the required goodness of iodine. It is also enriched with macro minerals like magnesium and calcium that are vital for physical and mental health.
The salt is available in one kg packs across the states of Maharashtra and Gujarat and expanding.
Jivana Classic Sugar, is hygienic, unadulterated, pure sugar, manufactured using automated production processes. The medium-‐sized sugar crystals are extracted from the first and best juice of each stalk of cane, guaranteeing the right amount of sweetness each time. It comes from Godavari Biorefineries Ltd., a sugar refinery in Karnataka operating for over 75 years.
Jivana Classic sugar is available in one kg and five kg packs in 1600 stores across Mumbai, Bangalore, Ahmedabad, Surat, Rajkot, Udaipur, and few other towns of Rajasthan.
The food division of the group will focus on branded food products and food additives.
About Godavari Biorefineries Ltd
Godavari Biorefineries Ltd is one of India’s leading and sustainable manufacturer of foods, biofuels, specialty chemicals, power, compost, waxes, and related products, using sugarcane as the primary feedstock.
For more information, email at: consumercare@somaiya.com or call on: 022-61702111
For more information, please visit: www.somaiya.com
Click here to download the pdf file.
