Frito-lay, ITC to build new potato chips plants in India

Frito-Lay India - with a market share of 60%- is drawing up a fresh game plan to drive volumes. To start with, the company is increasing its manufacturing capacity by setting up a new plant in West Bengal in the second half of 2010.

“We are extending our distribution network to reach out to towns and villages in India. Our focus is on consumer engagement modules and crowd sourcing strategy to promote our brands,” said Deepika Warrier, marketing director, PepsiCo India.

To take on the market leader, ITC Foods - manufacturer of the potato snack Bingo - is also chalking out a fresh growth strategy. This includes extension of its manufacturing facility, distribution network and aggressive marketing plans, said Chitaranjan Dhar, CEO of ITC Foods.

“We are setting up a new manufacturing plant. We will be increasing the number of our retail outlets to target a wider audience. There will be an increase in our ad budget too this year,” he added. ITC Foods forayed into this sector three years back, with the launch of Bingo. With 12 % market share, Bingo is today a leading brand in this sector.

The branded snack sector in India is expected to grow 20% this year, according to a Mumbai based analyst.