INDIA – Popular US chips brand Terra Chips may soon cost up to 150% less in India following plans by Future Group to have them locally made.
Currently, an imported Terra packet of 200 grams costs Rs 410 and Future Consumer plans to bring the prices down through local production and also plans to introduce smaller packs to make them more accessible in the country.
The gourmet Terra chips come in colorful textures of yellow, white, blue, and red and are made from potatoes, yucca, taro, sweet potatoes, parsnip, and batata among other vegetables.
Future Group’s plans are bearing fruits four years after the company and New York-based Hain Celestial Group entered into a joint venture to produce Terra chips in India.
The company has also been working for years to source vegetables for the chips from farmers in and around Tumkur in Karnataka where the Biyani-led company has set up a manufacturing facility.
From this facility, Future Group plans to produce Terra’s entire range locally which it will sell locally and also export to other Asian countries and to the Middle East.
“We intend to make Terra one of the largest brands in the snacking space,” Future Group CEO Kishore Biyani said.
“It will show our strength and reach amongst customers and our inherent ability to build new brands and products.”
The announcement comes even as Future Group is embroiled in various legal tussle with Amazon that has for months put a big spanner into Future Group’s plans to sell its retail assets to Reliance Retail.
Future Group is intent on selling its retail assets to Reliance Retail on a slump-sale basis for about Rs 25,000 crore (US$3.43 billion).
Amazon, which owns a 49% stake in Future Coupons, a Future Group holding company, objected to the deal and moved to court to block any attempt by Future Group to move ahead with its deal with Reliance.
As part of the Reliance deal, Biyani and his family members are barred from re-entering the retail space for the next 15 years under a non-compete clause.
However, Future Consumer, the company behind the “Made in India” Terra chips is not part of the sell-off plans and Biyani will continue to run it.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
