Agro Tech to sell snacks in hip metro localities
NIDHI NATH SRINIVAS
TIMES NEWS NETWORK[ THURSDAY, FEBRUARY 19, 2004 02:31:45 AM ]

NEW DELHI : Agro Tech Foods, maker of Healthy World atta, Sundrop and Rath vanaspati, has become the first food processing company to make a successful transition from commodity sales to retail vending of snack foods in India .

The Indian arm of America ’s second largest food conglomerate ConAgra, Agro Tech will now be selling everything from hot french fries to sizzling popcorn to movie-and mall-goers at hip metro locations across the country. Agro Tech has entered into an agreement with Lamb Weston, one of the world’s two largest french fries companies, to vend its range of potato-based snacks through a new brand just for vends — Just Fries. For Lamb Weston, the deal looks equally good because it allows a unique opportunity for brand building in India . As Lamb Weston sells only to institutional buyers globally, this would be the first time the US company would be selling on a retail basis anywhere in the world.

With 100 vends in place to sell Act II popcorn and corn-based snacks at cinema halls and multiplexes, the company will use Just Fries to sell hot vegetarian, hygienic, imported snack foods to everyone who wants more in life than pao-bhaji and mirchi wada.

Talks are on with soft drinks and beverages brands like Coke and Pepsi to set up Just Fries vends at soda fountains. Agro Tech has already tied up with several IT companies like Infosys, call centres, amusement parks, shopping malls and popular locations like Dilli Haat in Delhi for its vends. The company aims to have more than 200 franchisee vends at the end of 18 months.

Though Lamb Weston fries are already on the menu, Agro Tech may later collaborate with other snack foods companies to vend their products.

Company officials say vending has become the hot new idea for Agro Tech because it offers an important mode for product and brand differentiation. Agro Tech’s existing brands may be popular in the essential foods segment but fierce competition and thin margins do not allow sufficient room for high-powered growth.