The Hindu Business Line : Girijan co-ops to take on FMCG majors

FAST-MOVING consumer goods majors in the country might face some competition from unexpected quarters in the coming years. The competition is likely to come from the dense high-altitude forest areas in Andhra Pradesh, if the plans drawn up by the State Government-run Girijan Cooperative Corporation LTD (GCC) succeeds.

The Visakhapatnam-headquartered GCC, which procures minor forest produce and agricultural produce from the tribals in the State and markets them after value-addition, is now gearing up to develop a brand equity for its products. The idea is to ensure that the products, which range from neem soap, turmeric soap, honey, sheekakai powder to rajma and tamarind, get a place in the supermarkets all across the country. The cardinal marketing plank of GCC for its products will be the fact that they are all nature-based.

A senior GCC official told Business Line that a reputed marketing consultant was being appointed to suggest a package for building brand equity and popularising the products beyond the State in South India in 2002-03, and the entire country by 2003-04.

GCC has targeted a business projection of Rs 3 crore for the current fiscal, Rs 5 crore for 2002-03 and Rs 7.5 crore for 2003-04 for this range of natural products.

The scope of the marketing consultant also includes strengthening the distribution network of GCC, helping the corporation find new markets for minor forest produce (MFP), suggesting new consumer product range for converting the entire MFP into natural consumer products and promoting the brand, `Girijan'.

GCC has already initiated a move to appoint distributors covering the entire State, with each district being treated as a separate distribution point. In fact, distributors for Hyderabad, Visakhapatnam, Vijaywada and Tirupathi have already been appointed.

In a bid to enlarge its products basket, GCC has made a string of new additions to the MFP procured in the current fiscal by adding new products such as medicinal herbs, French beans (white), amla and white beans, which are likely to fetch an additional annual income of Rs 60 lakh, Rs 90 lakh, Rs 40 lakh and Rs 50 lakh respectively.

Also for the first time, GCC has encouraged procurement of green amla through forward sale in the current fiscal. More than 1,000 quintals have been procured and delivered so far.

Further, with the Andhra Pradesh Forest Department withdrawing the ban on procurement of `naramamidi bark' (jigat) in January this year, GCC plans to focus on this product, which is the chief raw material for the agarbathi (incense stick) industry. "About Rs 100 lakh worth of this product can be collected in this season, especially in the Nallamalai forests in the Rayalseema area,'' the GCC official said.

To boost its MFP procurement from the tribals, GCC has initiated a regeneration programme, which will significantly help the tribal economy of Andhra Pradesh. About 10 species, including gum karaya, tamarind, mohwa, sheekakai, soapnuts and amla, have been selected for the regeneration programme, which is being implemented at a cost of Rs 50 lakh.

Send this article to Friends by E-Mail

Stories in this Section
The king is back!

Sheet rubber prices decline

Canara Bank loans for tea sector

Marketing cess hits AP rice exports

TN treads sticky ground on grain front

SBI Caps submits report on Hind Coir privatisation

Crude olein shipments flood domestic market -- Revenue loss feared in vegoil imports

Vegoil imports decline 47%

Girijan co-ops to take on FMCG majors