Onjus - Squeezed Out

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Introduction Contd...

TABLE I
ETL's TURNOVER

Background ETL, then called as Enkay Synthetics, was started as a textile company in the early 1980s. The company was involved in making, bleaching, and dyeing of polyester yarn. During 1988-89, with competition becoming fierce in textiles, Tulsidas Goyal (Goyal), Managing Director of the company identified agro-processing as a focus area. In 1990, Goyal set up a plant in Vapi in Gujarat state, to process guavas, mangoes and bananas into puree and concentrates. Enkay Synthetics was merged with the fruit-processing unit and renamed as Enkay Texofoods Ltd. The company was successful in the export markets (Europe and the Middle East), and some of its clients were Nestle, Unilever, Pepsi, Coke and Heinz. ETL's fruit-processing plant was approved by the US Food and Drug Administration (FDA).6

Juicy Prospects

In May 1997, ETL launched Onjus on a natural taste proposition. It was launched as an 'on the move drink' in a 250 ml straw pack for outdoor consumption, with a tagline - 'Squeezed to please'. ETL had done some preliminary research before the launch of Onjus. Based on the findings from their research, Onjus was given a sweeter taste compared to the imported juices. But at the same time, an element of bitterness was retained to emphasize on the naturalness. Onjus used oranges from Florida and Brazil adding the Indian mandarin to suit Indian taste buds.

The pricing was also based on the market research study, which showed that volumes came from the Rs.5-Rs.9 segment. Goyal decided to concentrate on volumes and priced a 250ml pack at Rs.9. Through Onjus, ETL planned to drive the shift from carbonated drinks to natural juices. Natural juice was considered healthier than carbonated drinks. But, the quality of raw materials at the juice outlets prevented people from trying out natural juice. Thus, the frequency of consumption was limited. ETL saw in this a business opportunity.

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6] The US FDA had broad duties to regulate and safeguard food (except meat and poultry), medicines, medical devices, radiation-emitting devices, biologics (such as vaccines and blood products), veterinary products, and cosmetics. The FDA also had responsibility for labels for food, over-the-counter medicines, dietary supplements, drugs, and medical devices. The agency's functions fall into five categories. It reviews new products; inspects manufacturing sites and monitors reports of problems or new risks; issues standards and regulations; conducts research; and takes enforcement actions.