Lack of FSSI logo delaying Bisleri's entry into beverages: Chauhan

Mumbai, April 28: 

Bureaucratic hurdles have led Ramesh Chauhan, Chairman of Bisleri International, to delay his entry into the beverage segment this summer. 

The erstwhile owner of iconic brands like ThumsUp and Limca is waiting to get clearance from the Food Safety & Standards Authority of India for creating a new beverages category in the area of functional fortified drinks targeting youth. 

“We have to go through the Food Safety and Standards Authority to enter a new category and there are bureaucratic delays since the product has to be approved by them. At the moment, the beverage that we are considering is only on paper and we are still trying to define it and it may take months before we launch it,’’ says Chauhan. 

The Food Safety and Standards Authority of India has been created for laying down science-based standards for food articles and to regulate their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption. All food-based products have to carry the FSSI logo. 

“Our whole idea is to create a new beverage category which will not just limit itself to the health platform. It will be a youth-oriented product and we are still trying to define the new category. In beverages, if you do not have a new category, the product will get lost in the clutter,’’ he added. 

Ramesh Chauhan along with his elder brother Prakash Chauhan made history when they sold their iconic brands — ThumsUp, Limca and Citra to Coca-Cola nearly two decades ago. Today, they are ready to make a splash again in beverages with "differentiated" products to create their own niche in the already cluttered beverage segment. While Prakash Chauhan believes he has already found the "niche" by creating a coffee flavoured carbonated drink, younger brother Ramesh Chauhan has been delayed in creating a new beverage category with a "differentiated" product. 

"We have to be different and unless we create a new category there is no point in launching a beverage brand it now. While it is not going to be regular cola, energy or juice brand, it will be youth oriented and its launch will happen only after the monsoon months," he added. 

Meanwhile, his elder brother Prakash Chauhan believes he has already created a niche in the carbonated drinks category (CSD) with Café Cuba. Having test launched the product early this year, it is now poised for a national launch with target to make it a Rs 1,000 crore brand in the next 18 months. 

Nadia Chauhan, Joint Managing Director, Parle Agro, said: "We had decided to re-enter the cola category with a differentiated product to have an edge in the Rs 15,000 crore CSD category and will be investing Rs 50 crore this year towards building the brand.’’ 

Café Cuba is also expected to get manufactured by franchises in markets like Africa, Middle East and Europe.