CANDICO, the Rs 125 crore Indian multinational giant is the first confectionary company in India to launch a specialty candy retail chain. India is rated the second most attractive retail destination among emerging markets globally. The organized retailing sector is poised for almost 1000% growth by 2010. Candico is one of the three players that have moved from a distribution focus to direct retailing. The other two being ITC and HLL.

'The Indian confectionery industry is growing at the rate of 5%. If the companies in this sector would like to eclipse the growth rate for the industry they need to get into innovative concepts like retailing which is heading for explosive growth or products with functional benefits to satisfy today's consumers' needs", said Mr. Madhav Gupta, Executive Director, CANDICO ( I ) Ltd.

Candico has already opened up kiosks at prime locations like - PVR MGF, Gurgaon, Central Mall, Pune, Sonia theatre, Delhi, Shoprix, Noida & SRS, Faridabad to name a few. The company plans to open up another 50 such kiosks by Oct' 06. The candy retail chain is expected to contribute 25% in next five years to the total turnover. The concept met with a huge success in a recently concluded ' Franchisee Expo' in Mumbai from 19th to 21st April' 06, where, in a span of just 3 days, the company received more than 500 requests for franchising spread across the entire nation.

Most firms are jumping into the already cluttered sectors of clothing, supermarkets, bookshops, and multiplexes etc. where survival of many of these players is doubtful.

"We, at the Candico retail business, are leveraging on the already well established confectionery sales force of ours and also implementing the new concept of the 'pick and mix' stores which would be different in the high traffic areas", said Mr. Madhav Gupta, Executive Director, CANDICO ( I ) Ltd.

Candico's franchisee model is based on a new concept of selling candies in India. Each kiosk has a huge variety of both an international as well as a domestic range of confectionaries. Certain unique products like jujups, new variants of marsh mellows, jellies, chocolates and gums which are otherwise difficult to find, are easily available through the kiosks within the range of Rs. 600/- per kg to Rs. 1000/- per kg. With one of the lowest investment offer in the franchisee market, Candico's offer is one of the most lucrative. At a total investment of only Rs. 3 lacs the franchise gets a fully functional new business with profitability from the first month. Candico also provides product knowledge, manpower training, after sales support and also extends brand building activities at these kiosks.

About CANDICO

CANDICO is the only Indian company that manufactures all 4 categories of confectionery - candies, toffees, lozenges and gums. It has an impressive portfolio of 13 popular brands including Loco Poco, Koffi Toffi, Gumbo Jumbo, Eclairs and Time Bomb and has achieved sales of over 2 billion products annually.

CANDICO owns India's largest integrated confectionery manufacturing facility. Located at Nagpur (Maharashtra), this state-of-the-art facility is spread over a sprawling 15-acre campus. With a production capacity of 45,000 tonnes, the plant also undertakes contract manufacturing for large players in the industry. Its current and prior clients include Nestle, HLL, ITC, Nutrine, Dalmiya Consumer Care and Euro Gadhia (London).

For further information, please contact:

Monika Sharma: 011-26950580

Email: monika@candicoindia.com

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CANDICO, a Rs 125 crore confectionery giant, began its operations in the year 1997. In a span of just 8 years, it has grown to become the second largest Indian confectionery company. Candico is the only Indian confectionery company which has the capability to manufacture all four-product categories of confectionery: Candies, Toffees, Mints and Gums. Most of our products are well known in their category for instance Loco Poco, Koffi Toffi , Lacto Plus, Fruits Candy , Eclairs, Time Bomb and Jumbo Gumbo.

Candico has the distinction of having launched Fruit Chews ( an internationally acclaimed product ) - first time by an Indian company. It is available in three mouth watering flavours - Banana, Muskmelon & Strawberry.