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AVT, Gavia form JV to market Santa Maria products
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Saturday, 04 August, 2007, 08 : 00 AM [IST]
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Our Bureau, Bangalore
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company, has signed a distribution agreement with a Swedish company Gavia, who has the rights to the 'Santa Maria' product range of "TexMex" (Mexican) food from Sweden for the Indian market. The company will import the range from Gavia for the initial market placement and test marketing. Gavia also holds the trademark rights of "Santa Maria" brand and the manufacturing technology for the product line.
For local manufacturing and marketing of the Mexican food range, AV Thomas Group plans to form a 50:50 JV with Gavia. The new JV will have the exclusive rights to manufacture and market the Santa Maria products in India. These products will initially be available in the cities of Bangalore and Mumbai.
This joint venture will invest in the plant and machinery required for manufacture of the product range. Depending on the market feedback, the initial investment may vary from Rs 20 to Rs 25 crore. The company expects a total turnover from Rs 100 crore to Rs 125 crore in its third year of operations.
According to M S A Kumar, managing director, AVT Natural Products Ltd and AVT McCormick Ingredients Ltd, "The new JV hopes to bring to India the concept of Mexican cuisine and just not products. The range will be made available initially in Bangalore and Mumbai and then later in another 8 cities in the next stage."
With the launch of Santa Maria products, the JV hopes to bring the complete concept of Mexican cuisine to India. The product range would comprise Tortillas & Tacos, chips, dips and wet sauces and seasoning mixes. These products would be available in the premium department stores and retail chains.
Ludwig Mattson, managing director, Gavia India AB, said, "Santa Maria and AV Thomas group of companies have been in the business of spices for more than a decade. With this joint venture, we hope to bring a complete range of Santa Maria products to India. We believe that the Indian market will respond favourably to our products and we would be able to set up a manufacturing base here very soon."
To promote the products in India the company will be carrying out numerous Below The Line (BTL) activities in Bangalore and Mumbai. The activities would be confined to in-shop promotion, canter promotion, club promotion, mall activity and paper insertions. These would ensure significant reach to and direct interaction with consumers.
AV Thomas is one of the leading business groups in South India with interests in plantations (tea, coffee & rubber), food & feed ingredients, leather goods, consumer products (tea & coffee), infotech & BPO (IT enabled services), plant biotechnology (tissue culture) and health care. The group has an annual turnover of Rs 800 crore.
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