New nut in town - Hazelnut

New Delhi, June 22 (UNI) Olive oil industry player Dalmia Continental Pvt Ltd today launched its first product in the snacks segment, Leonardo Hazelnuts and the company said it expects the sales to touch three crore rupees by this year-end and Rs 50 crore during the next five years.

Being imported from Turkey, the company is growing at a compounded annual growth rate of 75 per cent.

The company also projects an increase in the import of Hazelnuts to grow to 1,000 metric tonnes (MT) from the current 60 MT for this year.

Leonardo Hazelnuts will be launched in three market segments -- the industrial segment comprising the confectionary industry, ice cream industry and the hotel chains, bulk or wholesellers targeting restuarants and hotels, and retail sales.

''We have received enquiries about the prices and supply of the nuts. The market is very excited about the availability of the product in India,'' company President and COO Narayan Rajagopalan told reporters at the launch.

He, however, refused to divulge the details of the companies.

The product will be launched in three flavours for the retail markets -- Masala, Chatpata and Pudina. It will be available in 35 gms and 135 gms packs priced at Rs 35 and Rs 120 respectively.

The company will use its existing infrastructure for sales and distribution. It will spend five crore rupees in the next two years on product development and promotion.

The company expects the products to do well in the southern circle followed by the western zone. ''The Southern circle comprising Chennai and Bangalore are more acceptable of the product and we expect to gain major sales from the region,'' he added.

The nuts are priced 10 per cent higher than almonds in the wholesale market.

The product is aimed at the ''booming middle class'' consumers.

The cost of the product is high due to the high duty that is paid in the range of 30 per cent.

The product will hit the markets in the next three weeks and other variants will soon follow.

It would be a challenge for the company to create a market for Hazelnuts, which are priced higher than other nuts but healthier.

''Indians have come to accept olive oil as a medium of cooking breaking the common psyche and we are sure that we will be able to do the same with Hazelnuts. All we need is a little time,'' Mr Rajagopalan said.

UNI