Companies

Cremica Food Industries plans to expand into new categories

Meenakshi Verma Ambwani New Delhi | Updated on January 29, 2019 Published on January 29, 2019

Akshay Bector, Chairman and MD, Cremica Food Industries

May go public when revenues cross ₹600-cr mark; bets big on mega food park in HP

Cremica Food Industries Ltd, known for its mayonnaise, tomato ketchup and sauces, is looking to go for an IPO in the next two years.

In a bid to strengthen its product portfolio, the packaged food company is expanding into categories such as fruit jams and specialised flavoured syrups used in beverages.

It will also be strongly banking on the modern food processing infrastructure for tomatoes, fruits and vegetables, established at its mega food park in Himachal Pradesh to venture into allied value-added product categories in the next 1-2 years. Akshay Bector, Chairman and Managing Director, said, “We are on a firm and well-defined growth trajectory. We expect to close this fiscal with revenues of about ₹300 crore and have been growing at a steady growth pace of over 20 per cent year-on-year.”

The company expects its consolidated revenues to cross the ₹600-crore-mark in the next two years, which will include revenues generated by its mega food park. Bector said that the company may then look to go for an IPO.

Food park

Cremica Food Park, which is slated to be inaugurated in the next few days, has been set up on over 55 acres with ₹100 crore investment at Una, Himachal Pradesh.

Set up on a cluster approach, it is designed to offer infrastructure to facilitate setting up of integrated-food processing units backed by efficient supply chain which includes collection centres, primary processing centres and cold chain infrastructure.

The core facility that is coming in the food park is a fruit and vegetable processing line with a capacity of up to 40 tonne per hour.

Besides Cremica, the company’s ancillary partners and other food processors will also set up units at the food park either independently or in collaboration with the company.

“Overall, the food park will galvanise investments of about ₹200-300 crore,” he added.

Newer areas

The company is next looking to establish a strong presence in the fruit jam segment. “We aim to garner a 10 per cent market share in the next two years in the jam segment,” Bector added.

The company has also tied up with the French Syrup maker Maison Routin to launch specialised syrups which will be targeted at bars and cafés.

“This is a high value business and gives us a play in the beverages space. We expect this segment to be a significant revenue stream in the next three years,” he said.

Ready-to-cook segment

Bector said that the mega food park will enable the company to expand into other value-added food categories at very low cost.

“ We may look at value-added frozen food products or ready-to-cook products in the next few years,” he added.

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Published on January 29, 2019
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