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Financial Daily from THE HINDU group of publications Friday, March 31, 2000 |
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Erode firm RGE heads northwards
Our Bureau
CHENNAI, March 30
THE Erode-based Raj Ganesh Enterprisses (RGE), makers of Sowbaghya brand of wet grinders, will soon expand its product range and enter new markets in the north, according to Mr. V. Varadha Rajan, Director, RGE.
At a press conference here today, to highlight the award of ISO 9002 certification to RGE, Mr. Varadha Rajan said the company planned to introduce portable wet grinders.
RGE is also planning to introduce a model with a range of accessories like vegetable cutters, atta kneaders and coconut scrapers. The company is catering to both the domestic and commercial kitchens.
The company has initiated discussions for a marketing tie-up to access the Gujarat market. Since dry grinding was the requirement there, Sowbaghya grinders would be suitably modified, he said.
According to Mr. Varadha Rajan, the company, with a turnover of Rs. 4-5 crores, is a market leader with a 50- 55 per cent share of the organised market. The market is at present shared more or less equally by the organised and unorganised sectors.
However, with increased awareness regarding quality and after-sales service, the unorganised sector is steadily losing ground, he said.
The Sowbaghya factory at Erode has a capacity to manufacture 40,000 wet grinders annually. It markets about 15,000 units per year, most of it in Tamil Nadu. However, about 4-5 per cent of its turnover is from exports. This is bound to increase with intro
duction of portable models, he said.
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