FieldFresh Foods is planning to export its Del Monte brand products to the SAARC countries.
FieldFresh Foods is a 51:49 joint venture between Bharti Enterprises and the Philippine's Del Monte Pacific.
Its new manufacturing facility in Hosur, Tamil Nadu is expected to serve as a hub for exports.
Mr Yogesh Bellani, Business Head, Del Monte Foods, FieldFresh Foods, said, “We have just started a small quantum of exports to Maldives from the port of Chennai. The Hosur facility would serve as the hub for future exports to the neighbouring countries.''
Going forward, the Del Monte brand of beverages and culinary products will be exported to Nepal, Bangladesh and Sri Lanka. Set up with an investment of Rs 127 crore, the Hosur facility has the capacity to make fruit drinks at 300 cans and 200 pet bottles per minute.
“We expect exports to contribute between 5-7 per cent of our topline and would be happy to serve the SAARC countries with our brand of beverages and processed food,'' added Mr Bellani.
While the North and West are its biggest markets today, the Del Monte brand is poised to enhance its visibility in south especially with its beverages in pet bottles.
“Cans sell mostly in the northern markets, while pet bottles are used in the south. This summer we are enhancing our distribution for pet bottle beverages in three southern States,'' added Mr Bellani.
Currently the Del Monte brand of ketchup and packaged food reaches 35 cities across 60,000 outlets. While there is intense competition in the foods category, Del Monte claims it has made a mark with its ketchups.
“We are up against the big boys in ketchup like Maggi and Kissan, and are among the top four ketchup brands in the country today,'' claims Mr Bellani.
More than competition, the company's biggest concern is input cost inflation and the ability to hold on prices. As Mr Bellani says, “From crude oil to packaging materials, there are cost pressures on the supply side and we may just be forced to pass these on to the consumer.''
The Del Monte brand has seen minimal price hikes of 3-4 per cent but this might change in future.
Almost 60 per cent of FieldFresh's over Rs 200-crore turnover comes from retail sales while the balance comprises the B2B segment where it services hotels and institutions.