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As part of its international expansion, iD Fresh Food will open six factories with an investment of ₹12 crore each. The first facility will be established in a year, according to PC Musthafa, CEO and co-founder of iD Fresh Food,
Last year, as part of phase one of its international expansion, iD Fresh entered the US and UK markets with its coffee products, which were later followed by paranthas. Now, as part of the third phase, it will set up factories in both countries.
Musthafa told businessline, “Overall, we plan to set up six factories—three in the US, one in the UK, one in Singapore, and one in Saudi Arabia. These would be similar to our Delhi factory.” Earlier this month, the company expanded to north India with its 15,000 sq ft factory in Haryana. Currently, it operates five factories in Delhi, Dubai, Mumbai, Bengaluru, andHyderabad.
The company says that for running a fresh food business, local manufacturing facilities are essential. He said, “As we expanded our delivery base, we used to airlift from Bombay to Delhi, then shifted to train, only to realise its lack of viability. That’s the reason behind setting up local manufacturing facilities.”
Strong competition in UAE
Despite facing the strongest competition in the UAE, Musthafa claims that the UAE business is doing fairly well. “We compete with around 24 players in the wet batter segment. Over the last three years, the business has grown, and today it accounts for one-third of our overall sales.” The company posted revenues of ₹419 crore in FY22 and is expected to generate ₹600 crore in FY23.
He believes its success in the UAE market is due to the combination of three factors: well-established last-mile storage; a higher acceptance level for packaged food, and consumers’ willingness to pay more for a product.
Product portfolio
iD Fresh has various product portfolios such as wet batter, dairy, parota, coffee, and more. “Both the wet batter and parota segments contribute 30-35 percent to the revenues,” said the CEO. In addition to its portfolio of idly-dosa batter, the dairy portfolio which it established four years ago is also successful. “We generate ₹7 crore in monthly paneer sales, ₹2.5 crore in monthly curd sales, and we expect that ghee (the latest dairy product) will generate ₹100 crore over the next three years,” he added.
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