Avesta Good Earth launches Health bars

New Delhi, July 15: The consumer foods division of pharma major Avesthagen, Avesta Good Earth, has launched its new range of Muesli bars, Good Earth Muesli and Whole Wheat Crackers here.

The company will invest Rs 15-20 crore in setting up a new manufacturing plant in Hyderabad, which is HACCP-compliant and is expected to be operational in the next fifteen months.

Currently, the company has a plant in Bangalore.

The company expects to generate a revenue in excess of Rs 15 crore for FY 2007-08.

''Health bars are common in the west but there is a low activity when it comes to India. The global cereal bar market is in excess of three billion dollrs with a growth of over 70 per cent in the last five years,'' said company Chief Executive Director Sandip Dang.

Muesli is a combination of rolled oats, dried fruits and nuts.

Though, oats are not produced in India but the company will import it from Australia, with Germany, Chile and Canada being the other options.

''Investments to the tune of 30 per cent of the expected revenues will be poured into marketing the product to establish the brand and products with this cycle continuing for a few years,'' said Mr Dang.

The company will roll out distribution through more than 15,000 outlets in 53 towns by Sepember this year and expect the sales to be driven by the cereal bars.

The company has tied up with retail majors like Metro Cash and Carry, Food Bazaar, Spencer, Subhiksha and Magnet.

''We expect 65-70 per cent of the sales to come from the north and western states and the focus will remain on modern trade and large retail for distribution thrust,'' said Mr Dang.

UNI