New Delhi, June 20 (PTI) With the growing acceptance of frozen food during the pandemic, Keventer Agro on Sunday said it plans to establish frozen food and tetra-pack milk businesses nationwide over the years. next two or three years.
The Kolkata-based company is targeting a 10 percent increase in revenue to Rs 1,100 crore in the current 2021-22 fiscal year from Rs 1,000 crore in the previous fiscal year, with a large portion expected revenues from frozen food and tetra pack milk companies, It said.
Speaking to PTI, Keventer Agro CEO Sunil Kajaraia said the company plans to keep its bagged milk and branded banana business regionally, while expanding the frozen food as well as milk business. nationwide tetra-pack.
“Right now the focus is on these two companies – tetra-pack milk and frozen food – where we believe we can establish ourselves all over India in the next 2-3 years,” said Kajaria.
The company, which launched the frozen food category four years ago, was until last year present in eastern India, which holds just 10 percent of the total frozen food market in India. .
The company entered the frozen food segment five years ago with vegetables and added non-vegetarian items over the next 4-5 years. Currently, the frozen food portfolio consists of approximately 54 items.
“Until last year, we were focused in the east. We are now in a significant part of northern India and plan to expand into the south and west soon,” Kajaria said.
There is huge potential in northern India, which has 40 percent of the country’s frozen food market, followed by the west with 30 percent, he said.
With the exception of 6-7 states like Maharashtra, Goa, Karnataka, Kerala, Tamil Nadu and Chhattisgarh, the company’s frozen foods are available in the rest of the states, he added.
Regarding the investments for the expansion plans, Kajaria said that she does not have her own frozen food manufacturing plant, but has established a network of supply chains linked to 7-8. main suppliers.
“There will be no investment in setting up manufacturing units. We will have to invest in branding and distribution of freezers. During the current year, we plan to invest 15 crore rupees, ”he said.
When asked about the launch of new products, the CEO of the company said that there is no such plan at the moment as the company wants to mix the existing portfolio and get rid of a few laggards and modify some according to the needs. preferences and tastes of people in different geographies.
The company has a network of 19 cold rooms across India and plans to place freezers at points of sale. Its products are also sold on various online platforms.
Regarding his tetra-pack milk business, the CEO said he plans to expand the ultra-high temperature processed tetra-pack milk business at the national level, for which an investment of Rs 100 crore has been made in a factory two and a half years ago.
“Now no investment is required. We are working on the distribution plan,” he said, adding that the company collects 2 lakh liters of milk per day from dairy farmers.
From these two companies, the company aims to double the revenues of the existing roughly 50 million rupees by the end of this fiscal year, he added.
Currently, the size of the frozen food trade in India is around Rs 7,000 crore. Of which 70 percent are institutional and the remaining 30 percent are retail, the company said and added that its main competitors in this segment are Godrej’s Yummy and McCain Foods. PTI LUX YEARS YEARS YEARS
Warning :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI