Companies

Sree Annapoorna Foods spices up for expansion

Our Bureau Chennai | Updated on September 04, 2020 Published on September 04, 2020

Aims to reach one lakh outlets across Tamil Naduin the next three years

Coimbatore-based pure masala processing and packaging company Sree Annapoorna Foods is spicing up for an aggressive expansion plan to reach one lakh outlets across Tamil Naduin the next three years, with a turnover target of ₹200 crore around the same time.

“Our plan is to be present in 50,000 stores with the help of 500 distributors by the end of this year and, in the next three years, we will be on-boarding another 350 distributors to reach around one lakh outlets across Tamil Nadu,” said Vijay Prasad, Executive Director, Annapoorna Foods on Friday while addressing a virtual press conference to announce the company’s expansion plans and launch of new product range.

Annapoorna, which is a pioneer in spice processing, recorded a turnover of ₹40 crore in the previous year, and is projecting to close this year with a turnover of ₹70 croredespite the intermittent distribution and logistic challenges it faced during the pandemic-led lockdown.

“Even during the Covid we have seen a 10 per cent increase in sales. Actually the demand was close to 20 to 25 per cent, but we couldn’t capitalise it because of the supply chain issues,” said Prasad, adding that “home food consumption has increased dramatically during the period which in turn has increased the demand for masalas”.

Noting that the company has adequate production capacity to meet its expansion plans, Prasad said the company will invest ₹5-6 crore year-on-year (Y-o-Y) over the next three years towards brand building. It also plans to double its head count to 800 in next three years with a focus on sales and marketing departments.

Per capita consumption

Prasad, who is a food scientist by education, said the per capita consumption of masala in the State is ₹100 per month, and only 20-22 per cent of the market share is held by the branded players.

“So, we have a huge opportunity to convert the unorganised (home ground masala) market towards our branded products,” he added.

Annapoorna currently has seven product categories, including pure spices, blended spices, ready-to-cook and regional blends, with 53 products and 101 SKUs. It also plans to add three new products every quarter to reach 40 new products in the next three years.

Prasad said currently 5 per cent of Annapoorna’s revenue comes from export to the US. The company plans to focus on the export market from next year after consolidating its presence in Tamil Nadu.

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Published on September 04, 2020
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