The Kochi-based ₹700-crore food company Eastern Condiments is investing ₹50 crore to expand its existing manufacturing capacities over the next 12 months.

The company is opening its ninth plant at an investment of ₹15 crore in Dharwad district of Karnataka in November, beginning with a production capacity of 100 tonnes per month, which will be further enhanced to 900 tonnes in phases, over three years.

The other eight manufacturing plants are in Rasayani (Maharashtra), Lucknow (UP), Theni (Tamil Nadu), Guntur (Andhra Pradesh), in addition to three in Kerala and one in West Asia.

“Karnataka, the first state that we entered into outside of Kerala has become our key market, recording revenue growth of 63 per cent in the first quarter and 83 per cent in the first two months of the second quarter of FY 2016, over the same period in the previous fiscal. The new plant in Dharwad will allow us to be closer to our customers in the State,” Firoz Meeran, Managing Director, told BusinessLine . Eastern’s India headquarters is in Bengaluru.

Eastern’s overall earnings for the first quarter this fiscal grew 19 per cent over the same quarter last fiscal, where overall growth was led by 55 per cent growth in its sales outside Kerala.

Meeran attributes the company’s quarter-on-quarter revenue growth success to its unique distribution model of owning vehicles in each State that delivers its product portfolio of 800 SKUs spanning spice powders, masala powders, rice powders, instant mixes, pickles, snacks, ethnic masalas and ready-to cook curry mixes directly to retailers in metros and rural areas.

“We follow a 70 per cent direct distribution model and just 30 per cent through wholesalers,” said Meeran, who is looking to grow overall revenue to ₹800 crore by March 2016.

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