Cremica Foods, a liquid condiment manufacturer supplying some leading fast-food chains, including McDonald’s, Pizza Hut, Domino’s, and Subway, says it would invest moderately to scale up its existing manufacturing capacities with ₹50–100 crore investments in four to five years.

Akshay Bector, the chairman and managing director of Cremica Foods, told BusinessLine that their Mega Food Park has helped in reducing capital costs.

“Since we already have the required infrastructure in place at our food park in Himachal Pradesh, we don’t necessarily need huge investments. In fact, CAPEX will be reduced further in the coming years,” said Bector. Currently, Cremica has two manufacturing facilities in Punjab and Himachal Pradesh.

Revenues

The company says it expects to reach ₹500 crore turnover by FY24. According to Bector, “We look towards growing the business organically and expect the revenues to be at ₹350 crore in FY23.” It posted revenues of ₹250 crore in FY22.

Cremica also exports its products. He said, “While we export our products to markets such as the US, Middle East, and Southeast Asia, it is a relatively new channel of operations and makes up one per cent of the overall revenues.” Furthermore, Cremica plans to launch a new line of products in the pickles, snack foods, or beverages segments by the next fiscal year, and expects a five per cent growth from the new line of business, stated the chairman.

The company claims it holds 10 per cent of the ₹44,000 crore condiment market and competes with players like Delmonte, Veeba, and Dr. Oatkar.

Initial Public Offering

A few years ago, Cremica announced going public, but has now deferred its decision. “We will not be going public for at least a year or two. We don’t see traction in the financial market for some time, and for a company to go public at a time when investors may lose money is not ideal,” explained Bector.

Related Topics
comment COMMENT NOW