The foods division of ITC plans to have a 12 per cent market share in the branded biscuits category in the next three years.

The company plans to achieve this with the launch of its Sunfeast brand, which includes Glucose, Marie and cream variants. Following its south India launch, ITC plans to roll out its new range in phases across one million outlets in the country.

Ravi Naware, divisional chief executive, ITC Foods Division, said: "With Sunfeast, ITC will make an entry into the branded biscuits market with a range of offerings in both the basic and value added segments. This is in line with the company's plan to develop new product lines by synergising its proven competencies."

The Rs 4500-crore (Rs 45 billion) biscuits market in India is pegged at 800,000 tonne and has been growing at 5 per cent over the last few years. Last year, the market grew by 12 per cent. The branded and organised segments account for Rs 2700 crore (Rs 27 billion) of the total biscuit market.

In the branded segment, the basic Glucose and the Marie range grew by 9 per cent, while value-added category (cream) grew by 14.5 per cent last year.

Naware pointed out that the southern region was growing at a much higher rate in the branded biscuits segment than the rest of the country. "In value terms, the south constitutes 26 per cent of the branded biscuits market," he said.

Interestingly, the opportunity before ITC is enormous. Considering the fact that ITC addresses staples, confectionery and the snack food category, it may be noted that nearly 48 per cent of the national household expenditure goes into foods. However, the branded and packaged food has captured only 5-6 per cent of this expenditure.

The Indian branded staples market is estimated to be about Rs 700 crore (Rs 7 billion) and is growing at 12 per cent per annum. In this category, ITC's Aashirwad Atta has met with a roaring success ever since its launch early this year.

Once again, the south has proven to a major market, according to Naware. Though he declined to mention its sales, Naware said ITC would double its capacity of Atta for the southern market.

Naware added that Minto, which is categorised under adult confectionery, has gained a market share of 42 per cent, thereby going head to head with Nestle's Polo.

While the adult confectionary market is pegged at Rs 750 crore (Rs 7.50 billion) and is growing at 6 per cent per annum, the sugar based confectionery market for children is estimated to worth Rs 1800 crore (Rs 18 billion) with a growth rate of 4 per cent per annum.