Emami Agrotech, the food and agri-business arm of Emami Group, has entered India’s packaged snacking market with the launch of three products under its new brand, WeMe, according to a report by BusinessLine.
The company has initially launched Choco Hazelnut Spread, Potato Chips and Jhuri Aloo Bhaja, with manufacturing currently outsourced. It plans to expand its portfolio with additional categories over the coming months.
Emami Agrotech plans to invest around Rs 750 crore in its snacking business over the next three years. Of this, Rs 400 crore will be invested in an integrated greenfield manufacturing facility in West Bengal, while Rs 350 crore will be allocated towards branding and marketing.
The manufacturing plant is expected to be established over the next two years and will cater to both the company’s snacking and staples businesses.
“We will invest around Rs 400 crore for the plant in West Bengal. And Rs 350 crore will be spent on branding and marketing for the newly launched products. A few more categories will be added in the next few months,” said Aditya Vardhan Agarwal, director, Emami Group.
With WeMe, the company is targeting younger consumers, particularly Gen Z and Millennials, and aims to build the brand into a Rs 1,000-crore business over the next five to seven years.
Emami Agrotech estimates India’s snacking market at around Rs 50,000 crore, growing at more than 8% annually. The company expects the market to cross Rs 1 lakh crore by 2034.
The WeMe products will initially be available in West Bengal before being rolled out across the country in phases. The company is adopting a digital-first approach, with a focus on content, commerce and consumer engagement.
“ WeMe has been built as a digital-first brand where content, commerce and consumer engagement come together seamlessly. This distribution strategy will enable us to make it instantly accessible across key cities while allowing us to continuously learn from consumers, innovate faster and respond to emerging trends,” said Vidula Agarwal, director, Emami Group, who is leading the initiative.
The company had entered the branded staples segment last year with products including maida, atta and suji. Emami Agrotech said the higher margins available in packaged snacks compared with staples were among the factors driving its entry into the category.
The company is also targeting a turnover of more than Rs 30,000 crore over the next five years, up from its current turnover of around Rs 20,000 crore. Emami Agrotech is currently India’s third-largest edible oil refinery.
