Bangalore-based Unibic Biscuits India plans to bring labour-intensive cookie-making from Australia to India by importing some plants.
Unibic, a joint venture between Unibic Australia and D D Saxena, was set up in India in February this year with a plant in Bangalore.
Saxena, managing director, Unibic Biscuits, said given the low cost of labour in India, the Indian arm had been in talks with the foreign partner to ship some of the plants to India and export cookies to Australia.
He said the cost of manpower in India, for labour-intensive processes in cookie-making, is just 4 per cent of what it costs in Australia.
Saxena said Unibic would be catering to around one-tenth of the Rs 5,000 crore (Rs 50 billion) biscuits market in India. "Our target is to become a Rs 100 crore (Rs 1 billion) company in four to five years. Of this, exports should be around Rs 30-40 crore (Rs 300-400 million)," he said.
Unibic officials were in Delhi today to launch the Anzac and Bradman brand of cookies. The capital is the seventh market where these brands have been launched.
Unibic was established with an initial investment of Rs 15 crore (Rs 150 million). A further Rs 15 crore is expected to be invested by the end of 2006.
Saxena said talks are on with new venture partners, including an airline company, for joint marketing initiatives. "Coffee Day in Bangalore makes cookies at its outlets in Bangalore. This has been a very successful effort," he said. Saxena further said Unibic would try to upgrade the biscuits market in India.
The per capita consumption of biscuits in India is just 1.4 kg, while it is 3 kg in Malaysia and around 8-10 kg in developed countries.