Date:03/03/2004 URL: http://www.thehindubusinessline.com/2004/03/03/stories/2004030300630600.htm

Back Tatas plan to launch cooking soda

Purvita Chatterjee

Mumbai , March 2

TATA Chemicals is launching a cooking soda under its existing crystal salt brand, Tata Samunder. Currently being test-marketed in Hyderabad, Bangalore and Chennai, the Tata Samunder cooking soda is pegged at Rs 2 for 30 gm and Rs 5 for a 100 gm pouch and is poised for a national launch.

Speaking to Business Line, Mr Satish Sohoni, COO, Food Additives Business, said: "There is a need in the market for branded cooking soda which is not being met currently. With the sanctity and power of the Tata brand we will be offering purity in the product at value-for-money price points.''

Cooking soda is a commoditised ready market that lacks a national brand.

Used as a leavening agent, it is sold under different names at the local level and its application is mainly as a food additive.

However, Tata Samunder cooking soda is also being propagated as a soda powder that can be used for a variety of purposes, including as a disinfectant.

It will be manufactured at the company's salt manufacturing base at Mithapur, Gujarat.

Mr Sohoni said, "On the back of the pack we have listed the various ways in which the soda powder can be used.''

Bates India has been appointed to devise the packaging for the new brand. The agency has also come up with the baseline Narma Naram, Garma Garam.

Mr J.S. Mani, Executive Vice-President, Bates India, said: "Our agency is involved in below-the-line activities for the brand. There is no mass media communication yet."

Mr Jagdeep Kapoor, Managing Director, Samsika Marketing Consultants, said: "The company will have the first mover advantage, since cooking soda is a commodity as of now."

Tata Chemicals has consciously chosen the Southern cities as the testing ground for the product.

"The cooking and eating habits in these cities give us a fair idea of what the consumer is looking for," said Mr Sohoni.

However, the company has decided to restrict its low-cost Tata Samunder Crystal Salt to the South.

Mr Sohoni said, "The business model for the crystal salt is a local one. We have not yet to decided whether we want to launch it nationally.''

Meanwhile, the company's premium Tata Salt brand continues to dominate the salt market with 41.3 per cent volume share as per ORG Marg.

Tata Salt has a turnover of Rs 350 crore and exists under the food additives division of Tata Chemicals.