Modern Food eyes health and wellness segment with brand relaunch

V. Sajeev Kumar Kochi | Updated on January 11, 2018 Published on May 22, 2017

Aseem Soni, CEO & Board Member, Modern Food Enterprises Pvt Ltd

Growth strategy involves increasing bread biz, new categories and reaching new markets

The bread major Modern Food is looking at a 25 per cent growth in revenue by FY-18 by focussing on health and wellness segment following its relaunch. The company is also eyeing a four-fold revenue by FY-21 to ₹1,000 crore from the current ₹300 crore.

“Modern Food's growth strategy will be a combination of increasing the bread business; getting into new categories and opening its reach to new markets,” says Aseem Soni, Chief Executive Officer & Board Member.

“We would be investing 4-5 per cent of our revenue for marketing,” he said, adding that the new brand has been carefully crafted to strengthen its appeal to multiple consumer segments for every meal occasion through a range of products.

“We plan to strengthen our presence in the States where we are already present, especially Kerala, Tamil Nadu, Telengana, Karnataka, West Bengal and Maharashtra and expand the presence in white spaces in the North and West”, he said.

Soni – who was in Kochi for the relaunch of the brand – told reporters that the domestic bread industry is fragmented with multiple players in the unorganised segment and two national players that include Modern Food. The size of the market is estimated between ₹6,000 crore and ₹6,500 crore.

With the backing of the PE investor Everstone Group, he said the 25 per cent revenue growth in the current fiscal will be significantly driven by volume growth of more than 20 per cent in the health and wellness segment. “We have series of plans to enter into non-bread business likes cakes, rusks and so on, and are also open for acquisition of good brands with good manufacturing practice,” he added.

On the Kerala market, he said it is the largest market with a contribution of 35 per cent of the company's total revenue. With a well distributed bread and bakery brand, the business will further increase across the State by 15-20 per cent.

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Published on May 22, 2017
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