Sapins Farm Products expands into retail to regain its mojo

A shift in focus to the retail sector from the corporate sector during these times of Covid-19 has triggered a spike in the business of Kerala-based dairy brand Sapins.

The new strategy helped the 12-year-old brand to retain growth, as well as to improve cash flow and profitability. The brand has now managed to get 85 per cent sales from retail, while the Covid-19-stricken corporate sector accounted for the rest, Gigi Thomas, Managing Director, Sapins Farm Products, said.

Sapins never seriously looked at the retail market, as it enjoyed strong growth in the corporate segment, with supplies to star hotels, premium restaurants, top caterers, bakers and staff accommodations of large employers in the State.

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But weakening business in the corporate sector in these pandemic times prompted the company to expand to retailing with more products, such as ghee, butter, paneer, and khoa, which were hitherto sold only to corporate customers, he said.

The strategy paid dividends, and the company is confident of achieving sales of ₹25 crore against ₹23 crore last year, he added.

Besides, the shift to retail also generated more employment for its sales force. Once its traditional customers, especially the hospitality industry, turn active again, Sapins expects sales to grow rapidly and cross the ₹100-crore mark in three years, he added.

The brand does not depend solely on retail shops; it has launched a Food Carriers app. Teaming up with a handful of other brands, including ready-to-cook chappatis, dosa and idli batter makers, the app launched a breakfast home delivery model to apartments in Kochi during the peak days of Covid-19.

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The company’s major plant is at Kizhakambalam with a capacity to process 50,000 litres of milk daily. The unit has modern production lines with separate capacities for curd (10,000 litres per day), ghee (1,500 litres per day), paneer and butter (2 to 3 tonnes per day) and four varieties of milk.

Sapins also has two chilling plants at Kozhinjampara in Palakkad and Thenkashi with capacities of 20,000 litres per day and 50,000 litres per day respectively, that cater to the pre-processing segment.

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