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Kolkata-headquartered JK Masale, one of the dominant packaged spice brands of eastern India, is looking to consolidate its presence nationally and expand overseas.
In India, the company is eyeing an entry into the Southern markets like Telangana and consolidating in markets like Karnataka and Andhra with regional offerings. A overseas foray will see it enter West Asia and African markets.
According to Vinod Jain, Director, JK Spices & Food Products (which owns the JK Masale brand), the company has seen an over 60 per cent jump in turnover to ₹245 crore in FY18, aided by national branding and marketing. The company will continue with these activities as it targets around 50 per cent growth in sales this fiscal (FY19) to ₹360 crore.
“As a part of our national expansion strategy, JK is also in the process of developing spices targeting South Indian markets. We will expand into new geographies like Telangana and consolidate in other markets like Karnataka,” he said on the sidelines of the launch of its new offerings.
JK Masale currently has a strong presence in Eastern India (Bihar, Bengal and Odisha) with 35 per cent market share. The company is also present in Maharashtra, Rajasthan, Andhra Pradesh and Karnataka.
JK Masale currently has three integrated units – one each in Gujarat, West Bengal and Rajasthan with an annual capacity of 30,000 tonnes. Around ₹7-8 crore will be invested as capex primarily for adding production lines.
Organic offerings
According to Jain, the company will also explore the possibility of having organic offerings targeting the export market.
At present, exports to countries like Japan, Singapore, Hong Kong, Thailand and the US, account for around 5 per cent of its total turnover.
“We are looking at new markets in Asia, Middle East and Africa. We can also explore the possibility of having organic products targeting the export markets,” he said.
Typically, organic packaged spices are priced higher than regular packaged ones and are also said to have high margins.
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