The Hindu Business Line : Galla Foods set to launch fruit beverages

“We are currently in the process of installing the required machinery for the beverage unit. The plant will be commissioned by mid-April, after which the beverages will be initially launched in Andhra Pradesh, Tamil Nadu and Karnataka,” Mr Ramachandra N. Galla, Chairman of the company, told Business Line.

The company initially plans to launch five variants — mango, papaya, apple and two mixed fruit combinations — to mark its foray into the beverages segment.

He also said that it would take about 15 months to establish a countrywide presence. According to industry estimates, the overall fruit beverage market is around Rs 2,000 crore and mango accounts for Rs 700 crore.

Currently, GFPL exports mango (Alphonso, Totapuri) puree, concentrates and okra to the US, Japan, Russia and some countries in Europe and West Asia.

It is also exporting papaya and guava puree and according to Mr Galla, the company is also looking at including other tropical fruits.

Ropes in farmers

According to him, the company has roped in farmers in the Chittoor belt (Andhra Pradesh) to grow quality mangoes for processing by providing them with suitable education and technology.

“We have so far invested around Rs 30 crore in our facilities in Chittoor since its inception in 2005. We are looking at investing a further Rs 40 crore during the current financial year for doubling our puree production capacity to 15,000 tonnes and also for the beverage line. We have exported around 7,500 tonnes of puree and concentrate last fiscal,” Mr Galla said.

Debt-equity ratio

According to him, the debt-equity ratio for the proposed investment will be around 1:2 and the second puree production line will be commissioned by the end of the month.

The company also has a facility for grading and packaging vegetables and fruits apart from a facility for controlled ripening of bananas.

“We are supplying these vegetables and fruits to several retailers in the domestic market too,” he said.

GFPL is also looking at developing an in-house research and development centre at the existing facility for new product development.

Mr Galla, however, did not give a timeframe for completion of the project.

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