which femose company makes Xylitol hard candy in india?

Question

because xylitol reduces tooth decay and relieve in dry mouth

Answer 1

Perfetti Van Melle caps a successful decade in India bydoubling sales in the last two years, outstripping theconfectionery industry's growth rate. But more is to come,says the company. Growth will be pumped up by highercapacity, more brands and increased adspends.
LATER this year, Perfetti Van Melle (PVM) India will complete a decade in India. And, Managing Director Stefano Pelle is pleased as punch about the way things have shaped up for the confectionery major since it set up shop in India in 1994. The company has doubled its sales turnover in the last two years to Rs 400 crore, posting a cumulative annual growth rate of 36 per cent against an average industry growth rate of just about four per cent.

While bottomline details are not available, Pelle claims PVM India has no accumulated losses. On the horizon are enhanced manufacturing capacities and substantial investment in marketing, advertising and brand building — but all through internal accruals. PVM India plans to invest Rs 150 crore-200 crore in the country over the next two years in doing just that. "Over the last decade, Perfetti Van Melle has invested Rs 500 crore-600 crore in India. We doubled our turnover to over Rs 400 crore last year and expect to post at least Rs 450 crore sales turnover in 2004," Pelle says.

One of the reasons for its success in India has been the ability of the company to consolidate its position in whichever segment of the Rs 1,600-crore confectionery market (Rs 1,100 crore of this is organised) it operates in. While PVM India has had to withdraw products, much like other FMCG companies, Pelle says the experience has been rather pleasant. "Generally, it is an accepted rule that only about one new product launch in 30 is successful in our category but in India we've had a remarkably good success rate with new launches. The last major product we withdrew from this market was Brooklyn strip gum but that was a good nine years ago." He says there are no plans to relaunch Brooklyn but the company is poised to enter several new product categories.
Just a few weeks ago it forayed into the 15,000 tonne a year market of éclairs with Chocotella. Earlier this year, it entered the digestives market with Chatarpatar. And last week, it unveiled Happydent Protex, a specially formulated sugar-free chewing gum containing Xylitol.

Pelle says Xylitol helps prevent tooth decay, adding that the delay in launching sugar-free products in India was because till a few months ago the Government did not allow use of non-sugar-based sweeteners in confectionery. Xylitol is a non-sugar sweetener which helps contain bacterial growth in teeth.

Happydent is the first sugar-free chewing gum from Perfetti, adding to its chewing gum brands like Center Fresh, Center Shock and Big Babool. However, the first mover advantage lies with Wrigley's which recently launched sugar-free Orbit. While five Happydent gums are available for Rs 5, only four Orbits are sold for the same price.

Perfetti, though a clear market leader in the Rs 300-crore chewing gums market - which is not growing as fast as before - could face tough competition from companies like Wrigley's and even Cadbury which, industry sources say, is planning to enter the chewing gum market soon. The competition is expected to come in the form of new products and variants to existing ones, especially in segments where Perfetti has no presence. However, Perfetti's MD is gung-ho about growth. He says the company is on course to maintaining its high double-digit growth rate and will thus need to augment capacities. At present, it has two manufacturing plants — at Manesar (Haryana) and one near Chennai. But over the next 6-8 weeks, the first plant of PVM India outside the country is expected to be commissioned in Bangladesh with an initial investment of Rs 20 crore.

Besides, capacities at existing plants will be augmented. PVM India looks after operations in several neighbouring countries including Bangladesh, Sri Lanka, Nepal, Bhutan, Pakistan, Maldives and Myanmar. The Bangladesh facility, Pelle says, will manufacture some existing products sold in India and a few new ones that are being finalised.

Sameer Suneja, head of marketing, says PVM India is second only to the Italian parent in terms of sales volume in the entire Perfetti group worldwide and has several firsts to its credit. For example, India is the only Cofitos (its coffee-flavoured toffee) producing operation across the globe and the product is exported to several countries from here. With the manufacturing facility going on stream in Bangladesh soon, the company plans to add three or four new products to the 70 SKUs it already has.

So, will the next 3-5 years be replete with a similar string of successes as the last five years have been? Pelle says the only way to ensure that PVM stays market leader in every category it operates in is to bring more efficiencies into the system, manage input costs even better than before and ensure increased advertising, marketing and distribution support to products.

"We spend anywhere between 10 and 15 per cent of our net sales on advertising each year. Besides advertising, we also focus on extensive distribution support. We visit each and every retailer in the country at least twice a week and this will be increased to thrice a week soon," says Suneja.

An admiring competitor says that the kind of spends that Perfetti has has fuelled its phenomenal sales. "Their products are reasonably priced, they have a fairly good distribution network and once they reach a critical mass that will propel them forward." Trade sources estimate that Perfetti brands would be distributed across 6.5 lakh outlets and the combination of right-priced products, distribution reach and fat ad spends has ensured it a 25 per cent market share in value terms, though in volumes, Nutrine would still corner 20 per cent of the market with blockbuster brands like Maha Lacto.

However, it's a tough haul in the confectionery market — one estimate has it that 40 players are slugging it out in the market. South Korean company, Lotte, which took over Parry Confectionery a few months ago, is also gearing up to launch its brands, while also changing the packaging for its popular toffee brand, Coffy Bite.

Ask Suneja whether the company has had to drop prices due to sluggish growth of the FMCG sector in general and pricing pressures in particular, and he insists that no price corrections have been made in years as confectionery price points do not allow much flexibility. "In confectionery, unlike other FMCG products, price points are typically 25p, 50p, a rupee. I cannot increase the price of a 25p product by 5p or 10 p but will have to straightaway double it to 50 p. So, instead of tinkering with prices, we try to bring more and more cost-efficiencies in the system."

And considering PVM India has managed to always grow faster than the industry, it appears unlikely that the path ahead will prove bumpy.

Answer 2

Xylitol Hard Candy

Answer 3

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Answer 4

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