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RP-Sanjiv Goenka Group Chairman Sanjiv Goenka is eyeing a ₹10,000-crore turnover from the FMCG business over the next five years.
While snack brand ‘Too Yumm!’ is something he is betting big on, plans are also afoot to enter new categories. Once such is personal care.
The group is already in the process of setting up an R&D facility in Thane, which is likely to be operational by February 2019. It will have a laboratory for snacks, bakery and personal care products.
Goenka did not specify the categories the group will enter, but maintained that growth in the FMCG category will be driven both organically, through new brands, and inorganically, by way of acquisitions.
“We are eyeing a ₹10,000-crore FMCG business over the next five years across three to five different categories. We are in discussions for acquisitions or we could come up with our brand,” he said on the sidelines of the launch of a new snack variant, Karare , under the Too Yumm! brand.
Too Yumm! and Evita (an acquired brand) are owned by Guiltfree Industries, a part of the RP-SG Group. According to Goenka, the company will look to expand the former nationally.
It is also exploring new overseas markets such as Hong Kong, Malaysia, Indonesia and Europe. At present, exports are made to Qatar, Oman, Dubai and Singapore.
Approximately ₹500 crore has already been invested in the snacking segment. Goenka said around ₹247 crore will go towards setting up a new manufacturing facility in Telangana. The group is also eyeing a manufacturing base in West Bengal.
Guiltfree currently has two own units — in Rajkot and Hyderabad — catering to the snacking segment.
“We are clocking sales of around ₹50 crore a month across Too Yumm! and Evita. By July next year, we may have an annualised turnover rate of ₹1,000 crore,” he said.
The company is expected to be EBITDA positive by next fiscal.
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