Tobacco product company, GCL, has forayed into food snacks business and hydro power generation to diversify from the tobacco business now facing strict curbs from government.

The company has invested around Rs 50 crore to setup manufacturing plant for food snacks at Baddi and plans outlay of Rs 50 crore for marketing and branding its new FMCG business. To further its diversification bid the company is aggressive on small hydro power generation projects aiming for capacity of 100 MW in next seven years.

To make a mark in the competitive FMCG market, GCL plans an aggressive marketing and branding campaign for its FMCG venture. In the past GCL, that ventured into tobacco business in 1942, never had open access to media campaign to promote its product line primarily tobacco based products.

“We are aiming to make FMCG business mainstay of the company in the coming years. We plan to market the FMCG products in Northern market initially but finally achieve a pan India penetration,” chairman, GCL, Gopal Gupta told ET. As per his plans the company intends to set up another manufacturing plant around Agra, Mathura to strengthen its foray. The company procures potato from parts of Punjab, Agra Mathura, Punjab, and Himachal Pradesh.

GCL has roped in animation iconic Chota Bheem to promote its potato chips brand Tat-O especially among the kids. Manufactured at automated plant at Baddi, the snack comes in four flavours superhit salted, masala, tangy tomato and cream & onion. In the coming month the company is adding new products in the multi grain based healthy snack category.

The company’s diversification plans, initiated three-years ago are taking shape at a time when government have banned tobacco products like gutka. The foray into FMCG took root after the next generation of the family, 24-year Apurv Gupta, son of the chairman joined the family business. Apurv is appointed as director food division at GCL.

“With retail boom, consumer preferences changing, and the demand to cater to a cross-section of consumers, we are now aggressively making strong inroads into various sectors such as FMCG, Hospitality, Power etc. Hence we have reoriented our business strategy and the Group has been rechristened as GCL, and will have strategic business units to handle these businesses,” Gupta says.

The company is operating a 5 MW hydro power project at Kullu and is setting up two more projects of capacity 2 MW and 9 MW in the same district. In due course of time, the company plans to launch its second project.

“In the next 5 years, we plan to become a prominent player in the power sector with the capacity of around 100 MW in the next 5to 6 years with a focus on Himachal,” Gupta said. The company has invested around Rs 50 crore in the projects so far, he added