Coming from Nilgai family, what made you launch Cocofly?
COCOFLY is a continuation of the very same vision that has driven by us since day one. We are positive about the FMCG opportunities that India's rapidly changing consumer market offers to new entrants into the market. At Nilgai Foods we see ourselves building F&B brands for 21st century India, and COCOFLY is the latest attempt at achieving our vision. Our mission is to make premium food experiences more accessible to the wider Indian public, and we felt that a 100% natural coconut water with no added sugar and no preservatives is exactly what the Indian public is looking for right now.
How do you see the market for Cocofly and coconut water emerging in India?
The market is already estimated at 2600 crores, but this is the unorganised segment that consists of coconut vendors selling from push carts. We expect this market to grow considerably as packaged coconut water brings shelf life and portability benefits and therefore increases the footprint across the country where coconut water can be sold. We also expect packaged coconut water to eat into the fruit juices and nectars market as consumers switch to a healthier option of packaged drink. Over the next 5 years we think that the packaged coconut water market will grow to over 1000 crores from a starting point today at approximately 50 cr.
How are you marketing your product right to the customers?
Our launch in Delhi focused on our products USPs that makes COCOFLY stand out not only compared to other beverages but also when compared to competing coconut waters: we have highlights the fact that COCOFLY has no added sugar and no preservatives, which makes it the only truly guilt-free drink in the market. At Nilgai Foods we always look for ways to leverage technology to improve our effectiveness, so in addition to main stream ATL activities, we amplified the health message across social media and online publications.
You claim of having Cocofly 100 per cent natural. What is the shelf life of the product?
Without any preservatives we are able to achieve a 5 month shelf life for the product. Other coconut water brands can achieve a longer shelf life with the use of preservatives, but longevity is not the sole objective for us. We want to give our customers a beverage option that is genuinely free from anything negative. There can be no exceptions here. We are building a brand around honesty and integrity, and we want consumers to understand why are making these choices rather than giving them a shelf life that is commercially more viable but at the expense of their health.
From where did you source the coconuts?
We get our coconuts directly from farms in Tamil Nadu through a network of aggregation points. We try to package our drink as close to the source as possible, and we are always looking for ways to streamline and improve our supply chain.
Talking about packaging. How is the packaging for Cocofly done to deliver it fresh to customers?
We partnered with Tetra Pak during our development stage. Their state-of-the-art technology allows us to package the coconut water in the absence of any air so that their specialised heat treatment process kills any bacteria and packs the drink in 6 layers of protective packaging without the chance of contamination.
How are you selling Cocofly? Tell us about your presence in the market both in retail and HORECA?
We are in more than 3000 retail shops across the NCR including a few major supermarket chains such as Savemax, WH Smith and Religare Pharma. We have seen a huge amount of interest from both public and private sector institutions that are looking for healthier options but have only found drinks that contain lots of sugar. As a result it has been easy for us to activate HORECA accounts - we are in over 60 hospitals in the NCR, and sell to caterers, hotels and restaurants. We have recently started supplying COCOFLY to select army units, which we hope to build into a long term government supply contract. Cinema chains have also shown interest as they have seen a sharp decline in soft drink sales and need to look for healthier alternatives to give to their audience.
Going forward, what is the expansion plan?
Now that our launch in Delhi has beaten our expectations, we are looking at expanding into other cities especially in the north. We are looking at raising a round of funding that will go towards brand building and awareness. Over the next few years we want to be the market leader in coconut water and we hope that coconut water will rival the fruit juice market in size.
Also, when we talk about Nilgai as a whole what new is happening at Nilgai?
PICO, India's first hot sauce brand, is also expanding right now. We are expanding our range into great tasting 'daily essential' sauces that are a must-have feature of every pantry. In July we are introducing chutneys into the Mumbai market as a celebration of India's original hot sauce - the chutney. So far chutneys have been predominantly prepared at home but we are banking on the growing number of nuclear families and double income households who no longer have time to prepare simple everyday accompaniments from scratch. PICO's range of chutneys will liberate the woman of the house and give her more time to enjoy with her family. We are excited about this new phase in the PICO journey as it will open up a huge market that we previously left untapped with our original range of PICO hot sauces.
Based on a recent Taste Tomorrow 2019 Survey, a global study conducted across 40 countries with over 17,000 consumers, people are placing more and more importance on consciously consuming healthy food which confirms that health and well being continues to be an important trend in the bakery, patisserie and chocolate industry. It is a trend that will continue to accumulate traction.
People want their food to contain ingredients which are natural and have an added nutritional value. Multigrain and seeded bread provide just the experience consumers are looking for with regard to taste and texture. Embracing the latest needs of consumers for relevance, authenticity and naturalness, Puratos India’s Puravita and Topfil Range of products offers vitality by bringing the taste, health and well-being only grains, seeds and fruits can offer.
Puratos is a Belgium-based MNC with local subsidiaries in about 68 countries. Puratos Products are manufactured in more than 58 plants spread over 5 continents and sold in over 100 countries. Puratos India was established in 2008 in Mumbai, India. It manufactures and supplies a wide range of quality and innovative ingredients for bakery, patisserie and chocolate businesses. It also offers marketing tools and solutions to identify and suit the needs of customers and encourages excellence through training, demonstrations and exchange of ideas in its Innovation Centers.
Bread made from the Puravita range of bakery mixes have improved nutritional value, are rich in fibres and minerals, contain limited salt making them a perfect contribution to a healthy balanced diet filled with mouth-watering elements for taste. The Puravita range has three bread mixes – Easy Puravita Multigrain, Easy Puravita Brown Bread and Easy Puravita Whole Wheat.
Easy Puravita Multigrain mix contains an exclusive blend of 11 carefully selected seeds and grains which provide a perfect harmony between taste and nutrition. This versatile bread mix can be used for making pizzas, focaccia bread, snack bread and many more. Easy Puravita Whole Wheat as the name suggests is made from 100 % whole wheat flour making it, a good source of essential nutrients, a healthier product in line with the global market trend of Health and Well-being. Easy Puravita Brown Bread mix is a bread pre-mix made of malt flour and whole wheat, which makes it a source of dietary fibres.
Puratos India’s Topfil range of fruit fillings is another pivotal innovation that contains up to 50% of natural fruit, giving customers the nutrition of fresh and juicy fruits. The range of delicious fruit fillings is ready-to-use and meets the most demanding requirements of professionals by being freeze-thaw stable. Available in Topfil Cherry, Topfil Blueberry and Topfil Pineapple, it is the perfect solution for professionals looking to offer more natural and healthy, yet tasty food to their consumers.
Health and well-being will continue to be a major factor which will test the scope of innovation in the bakery and patisserie industry. With the Puravita range and Topfil range, Puratos India enables you to respond to customer demands for healthier products combined with a delectable taste.
Also Read: Price Hike Accounts For Low-Profit Margins In The Bread-Making Business, Says Vikas Gupta
Tell us something about Chenab Impex.
Our company is in the business of importing and distribution of food products since 2002. We import the products of more than 70 leading food manufacturers which comprises of all types of processed food distributed all over India through our wide distribution channel. We supply to all kinds of consumers ranging from hotels, restaurants, caterers and retail stores.
What are the major operational challenges you face in the supply chain management?
The major challenge is the FSSAI requirements of labeling and ingredients so the manufacturer has to first comply with that. Second is the logistics because the efficient and proper cold chain is not available so you cannot import small quantities by sea. Premium foods you cannot import in container because it is in too much quantity and when it arrives in India the time it takes for clearing, cold chain for storage and distribution within India.
From which countries do you source your product?
We source our products from the UK, France, Italy, Spain, Greece, USA, Canada, Mexico, Thailand and our maximum import is from Italy.
Are you listed with HORECA? Would you like to name some of your clients?
Yes, we are listed with HORECA. All the luxury five star hotels across Indian are our clients. Hotel TAJ, Hotel Oberoi, Hotel Leela, Hotel Hyatt and Marriott are some of the names.
What is the market share of your product and how do you see them growing?
The market is really huge and our share is very small but they are growing quite satisfactorily. The demand is growing and Indian people like snacking so it will gradually increase with time.
How do you ensure superior packaging to maintain product quality and food safety?
We do not do any packaging from our end. We import and distribute as the products as they are packaged so we need to ensure that we are dealing with number one company in that category and that company takes care of packaging labeling and everything. We are dealing with internationally well renowned company who are award winners for their products and packaging. We are dealing in the package products so proper package is evident and if it is torn or broken then the product is to be discarded and if it is cold or temperature sensitive product we ensure that the right temperature is maintained throughout the transportation and storage so for that temperature recorder is used.
How do you look at food laws by government of India?
The food laws are essential but the present food laws are quite old and they need to be modernized. The food safety held the task of modernizing which they have not done so far because of which food safety lacking somewhere. They are concentrating more on ensuring safe food for rich people and ensuring that the imported food is safe and they are mainly consumed by wealthy people. Whereas 99 per cent of the population are consuming domestically produced food and there are very little efforts made in improving the quality and safety of the street foods, fresh vegetables, fruits, milk, fruits processed by small cottage industry so food safety and laws should be made to really serve the entire nation.
How do you decide on pricing of your products for Indian market?
We work at the cost of the product after it arrives in the country. We do the costing first according to storage, transportation and all those things which it require and then we add our administrative cost to it and price it accordingly.
What are your marketing and expansion activities?
Since, we are dealing with restaurants and hotel sector so marketing and promoting we do directly with the chefs. We keep them informed about our new products and place samples to them for testing. Also we do advertisements and social media activities to promote our products. Now, we have started import and distribution of wine from Spain and France and we will soon launch wine from Italy and Chile in Indian market.
Can you name some of your leading products that you manufacture?
Our leading products are ice cream cones, biscuits, rolled sugar cones, cone sleeves and butter scotch crunch.
What is the process of manufacturing your products?
We manufacture our own products with skilled labour at our factory in Sonipat, Haryana, and in Himachal to deliver best quality ingredients to the end consumers.
What is the supply chain process at your end?
We don’t deal with any distributor. We supply directly to all the big ice cream manufacturers in the country.
Who are some of your clients? Can you name them please?
We have clients from ice cream manufacturers like Vadilal, Mother Dairy and Creambell, to name a few.
Any special product which defines your uniqueness?
All our products are rich and unique. We don’t compromise with the quality.
What do you do to keep your products fresh and healthy?
We have special packaging which keeps our products fresh and away from moisture.
What is the investment scenario at your end?
All the investments are from our sources only. We don’t see any external accrual happening anytime soon.
Who do you think is your competitor in this category?
We don’t see anyone as our competitor, we are at the top.
What is your expansion plan year-on-year?
We are expanding around 25 per cent of our capacity each year and we may enter into some other product categories very soon.
What is the present quantity of products you manufacture daily?
We do around 10 lakh cones and 20 lakh sleeves per day at our manufacturing units in Haryana and Himachal.
Are you planning to tap the international market?
Not yet, right now, we are totally occupied with domestic market, but once we have excess production, we may also look forward to tap the international market as well. We are also manufacturing biscuits for Sunfeast ITC and we are doing contract manufacturting for them.
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