Private Equity fund Everstone Group is aiming to increase the turnover of Modern Food Enterprises Pvt. Ltd., by nearly four-fold to Rs.1,000 crore in the next five years.
After acquiring 100 per cent stake in Modern Food from Hindustan Unilever in April 2016, Everstone is drawing up a strategy to resurrect the company and the brand by entering new geographies and extending the brand to other categories.
“Last year, the company did a turnover of Rs.260 crore and this year it would be between Rs.280 crore and Rs.300 crore,” said said Aseem Soni, Modern Food Chief Executive Officer. “Hereafter, we are looking at both organic and inorganic growth to achieve our mission of Rs.1,000 crore in five years,” he said.
Currently, about 90 per cent of revenue comes from breads and the rest from non-bread items such as cookies, cakes and rusks.
The company is planning to increase its market share from the present 10-12 per cent to 35 per cent.
New portfolioInaugurating the Rs.15 crore Innovation Centre in Chennai last week, Mr. Soni said it would take 6-9 months to get the new portfolio ready and present the consumer with more relevant, contemporary and more value added products.
The company, which has been focusing mainly on white and brown breads, is now planning to address the health and wellness segment with a roll out of multi-grain breads, cakes, rusk and cookies.
Recently, Modern Food rolled out ready-to-cook chapatis in Kerala and plans are on to unveil parathas too. These two items will be rolled out in Tamil Nadu in the next three months.
Asked about capital expenditure, he said that they have enough capacity to make breads.
“Details about new products, construction, capacity addition, marketing and communication spend will be decided in two-three months time,” he said.
