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Bindu D. Menon

New Delhi, March 22 Veetee Fine Foods Ltd, a producer and marketer of basmati rice, said it is strengthening its line of products in the ready-to-eat-food segment.

The company, which is engaged in talks with hotel and restaurant chains to popularise its brand, said it may enter the frozen food category in the near term.

“Convenience foods are becoming more relevant and we are strategically positioned to tap the burgeoning market. Our range will be available in microwavable pouches, a concept which we have pioneered in India,” Mr Aayushman Gupta, CEO, Veetee Fine Foods Ltd, said

According to research reports, the ready-to-eat category in India is pegged at Rs 60-70 crore and is growing at a rate of 30 per cent per annum. The top three players in India – ITC, MTR and Veetee – account for 80 per cent of the market share between them. “For us, this is forward integration as our backend system is in place,” Mr Gupta said.

The parent company clocked a turnover of over Rs 300 crore in FY 2008.

“Currently, 80 per cent of our ready-to-eat products are exported to about 50 countries. The company hopes that the revenue share will be 50:50 in the coming years from exports and domestic market,” the CEO of Veetee said.

He said the company has also invested Rs 10 crore in microwave-friendly, flexible retort packaging. “A qualitative research conducted by IMRB international states that consumers are looking for factors like taste, nutrition, convenience and value. We have invested into the unique packaging to keep food fresh for a longer period,” he said.

Mr Gupta claimed that the company also follows ISO 22000, HACCP and BRC issue five safety management system for processing its products. “There are no added preservatives, colours and flavours. Moreover, all dishes have better consistency, authentic Indian taste with enhanced flavours and textures,” he added.

The company has 15 dishes in the ready-to-eat category. The products are sold under the Curry Collection brand and are priced between Rs 45 and Rs 49 for 250 gm. “We hope to sell two million pouches this year,” he added

More Stories on : Outlook | Foods & Food Processing

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