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Ready-to-eat segment whets NRI appetite

Ratna Bhushan

New Delhi , Nov. 23

MADE in India. Sold in Sainsbury, Selfridges, Walmart and Safeway.

It's fast becoming a reality. For, even as the Rs 25-crore ready-to-eat packaged foods market faces challenges back home, the category is gathering momentum overseas.

From ITC's Kitchens of India and MTR Foods, to Tasty Bites Eatables and Satnam Overseas, everyone seems to be wanting a slice of the NRI's food pie.

ITC Foods has already had a test run of its Kitchens of India range of ready-to-serve packaged foods in Selfridges, UK. Mr Ravi Naware, Chief Executive, ITC Foods, said, "Retailing in the UK, other European countries and the US is very much on the agenda. Next year, we plan to begin retailing in supermarkets in the UK."

Or take the Rs 130-crore MTR Foods. "We plan to begin selling our ready-to-eat food range in Sainsbury, UK, within the next six months," said Mr Sadananda Maiya, Chairman & Managing Director, MTR Foods.

The company's presence on the global map - at roughly 8 per cent of its sales - is currently marked by exports to the US, Canada, UK, Germany, France and Japan, among other countries. MTR has projected exports to account for 20 per cent of its sales in five years.

The Pune-based Tasty Bite Eatables Ltd (TBEL) claims to be the largest-selling Indian food brand in the `natural foods' category in the US. Mr Ravi Nigam, Executive Director and President, TBEL, attributes the brand's performance in the US to "significant" investments on the distribution front. "We have decided to focus on our largest revenue generator — the Ready-To-Serve (RTS) or retort packaging category," Mr Nigam added.

Tasty Bite's portfolio also includes ready-to-cook (RTC) curry pastes — already popular in western markets.

Satnam Overseas Ltd, on the other hand, proposes to set up a rice mill in the UK. The purpose: to market its flagship brand, Kohinoor, at retail chains in Europe such as Walmart and Safeway to ensure timely supplies of products. Estimated investments in the facility are Rs 20 crore, which will be routed through Satnam Overseas' UK-based subsidiary, Indo-European Foods.

The Rs 100-crore Bikanervala Foods Pvt Ltd plans to set up manufacturing units for traditional Indian sweets and ethnic snack foods in Canada and Dubai, said Mr S.S. Aggarwal, the company's Managing Director. The first Bikanervala Indian fast food outlet-cum-sweet shop in the US is expected to take off in New Jersey in six to eight months.

Bikanervala's manufacturing facility in Canada — a joint venture with a Toronto-based NRI — will involve an initial investment of about Rs 2.2 crore.According to Mr Aggarwal, setting up an overseas production base would help the company maintain freshness and enhance product shelf life.

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