The Hindu Business Line : Dalmia Consumer Care keen to expand reach of tobacco alternative

Vardan is a tobacco-free formulation in a tendu leaf bidi which was being positioned as the "world's first non-tobacco alternative that stimulates the pleasure of tobacco and mimics tobacco smoke."

Kolkata , Dec. 6

DALMIA Consumer Care, part of the Rs 1,200-crore turnover Sanjay Dalmia group, hopes to reach out to 1,250 key cities and towns across the country with its tobacco-free formulation, Vardan, by 2005.

Talking to Business Line here, Mr Sudershan Banerjee, Managing Director & CEO of Dalmia Consumer Care, said Vardan was being retailed in over 300 cities and towns. The response to the product was good but a lot of concept selling was required before people were convinced to use it as an alternative, safer and healthier lifestyle habit. While "blind tests" were successful, there was "psychological resistance" to Vardan when it was divulged to those on whom the tests were conducted that the product was tobacco-free. Mr Banerjee said Vardan was a tobacco-free formulation in a tendu leaf bidi which was being positioned as the "world's first non-tobacco alternative that stimulates the pleasure of tobacco and mimics tobacco smoke." He said tobacco users were generally not inclined to give up the habit. Hence, Dalmia Consumer Care decided to introduce the product, which would address the oral gratification market. Innovative research and development in this regard was done by the Dalmia Centre for Research & Development.

According to Mr Banerjee, the company was targeting "Indian consumers with a rural mindset." The size of the domestic market in the oral gratification space has been pegged at around Rs 50,000 crore, while the global market for tobacco products is estimated at Rs 900,000 crore. In India, 108 billion bidi sticks valued at over Rs 15,000 crore are consumed every month. About 92 billion cigarette sticks valued at around Rs 10,000 crore are consumed every year. The idea was to target bidi smokers by offering them a healthy alternative.

To facilitate this, Dalmia Consumer Care has unleashed a multi-pronged marketing strategy. This includes direct marketing, cluster marketing and tactical advertising. Eminent people from different walks of life, especially literature and arts & culture, were being chosen as brand ambassadors. For example, in West Bengal it would be well-known writer Ms Mahasweta Devi; in Orissa, dance exponent Guru Kelucharan Mohapatra; and in Assam, Mr Jatin Bora. The company plans to spend about Rs 50 crore to Rs 100 crore every year on brand-building and marketing and on creating the distribution and IT infrastructure.

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