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The Kolkata based company, Keventer Agro on Sunday disclosed that it is looking forward to develop frozen foods and tetra pack milk business nationwide in the coming two-three years due to its expanding acceptance of frozen foods during this ongoing pandemic.
The company revealed that it is aiming for a 10 per cent rise in its turnover to Rs.11,000 crore in the 2021-22 fiscal from Rs.10,000 crore in the past fiscal. It further clarified that it expects much of its revenue to derive from from frozen foods and tetra pack milk business.
Sunil Kajaria, CEO of Keventer Agro while speaking to PTI affirmed that the company desires to continue its pouch milk and branded banana business at the regional level while in the other hand it plans to stretch its expanding frozen food along with tetra pack milk business nationwide.
Kajaria elaborated, “Right now, the focus is on these two businesses – tetra pack milk and frozen foods which we think we can establish across India in the next 2-3 years.” The Company stepped into the frozen food category, four years back and since then till the last year provided its services in east India. The part of east India constitute only 10 per cent of India’s total frozen food market.
At its initial stages in the frozen food section, the company provided veggies and latter added non- vegetarian items in the following 4-5 years. At present, the company offers 54 frozen food items.
On the company’s market expansion, Kajaria informed that as of now they are in significant part of north India and further plans to expand it services in the south and west soon. Furthermore, he explained that there is a huge potential in North India that constitutes 40 per cent of the frozen food market of the country followed by 30 per cent in the west. Keeping aside 6-7 states namely, Maharashtra, Goa, Karnataka, Kerala, Tamil Nadu, and Chhattisgarh, the company’s frozen food are available in the market of the rest of the states.
On the grounds of investment for expansion plans, Kajaria informed that the company does not posses its own manufacturing unit for frozen food but have supply chain network associated with 7-8 major suppliers. He further elaborated that there will be no investment on setting up manufacturing unit but they will have to invest in branding and distribution of freezers. He informed that the company plans to put around 15 crores in the present year.
On the launch of new products, he confirmed that there is no such plans in the pipeline as the company wants to shuffle the existing portfolio to get over with few laggards and tweak some according to the taste and preferences of the people in different parts of the country. As of now, the company has a network of 19 cold rooms across the country and desires to place freezers at retail outlets. The products of the company are also being sold in different online platforms.
On tetra pack milk business, he said that the company plans to stretch the ultra high temperature treated tetra pack milk business at the national level. He further stated that to execute this Rs.100 crore investment was made on a plant two and a half years back. He further said that the company collects 2 lakh litre of milk from dairy farmers per day.
With these business the company looks forward to double the revenue from the Rs.50 odd crore by the end of the fiscal year. The size of frozen food business at present is nearly Rs.7000 crore. The key competitors to the company are Godrej’s Yummy and McCain Foods.