Fulcrum Venture India-backed Southern Health Foods Pvt. Ltd., is planning to raise Rs.100 crore to meet its expansion plans, said a top company official.
Promoted by first-generation entrepreneurs I.S.A.K. Nazar and his younger brother, Southern Health Foods is the maker of 40 ready-to-cook health products and two health drinks under ‘Manna Foods’ brand name.
Talking to The Hindu , Mr. Nazar, Southern Health Foods, Managing Director said: “Currently, we hold 67 per cent and rest by FVI. As we are growing exponentially, we are planning to raise Rs.100 crore to meet our expansion plans. Even after the dilution, we will be holding majority stake of 60 per cent and rest by FVI and India-based foreign investor. The deal will be concluded in six months’ time.”
With limited resources, the 15-year-old Southern Health Food has been posting 60-70 per cent growth year-on-year basis. Last year, it clocked sales revenue of Rs.55 crore and this year it plans to touch Rs.100 crore.
“We are the pioneers in the area of producing ready-to-cook products. We produce healthy foods right from six-month-old child to adults. While our products will remain natural and traditional, we are moving out of conventional mode to scale up our sales by appointing qualified persons on the board, for sales and marketing, introducing more health conscious products and exporting to several countries. To create awareness and capture mass market, we have roped in cricketer Ravichandran Ashwin as our brand ambassador,” he said.
Southern Health Foods has new 15 products in its pipeline. By April end, the company will roll out coconut milk, tamarind concentrate, ginger and garlic pastes and tomato puree under Smart Kitchen brand name. Coconut milk is imported from Sri Lanka.
“While the existing health products will be produced at our Ponneri factory, the new items will be outsourced to private firms in Salem and Krishnagiri. Coconut milk along with dry fruits such as apricot, figs and dates will be imported. Going forward, we expect 30 per cent of revenue will come from new products,” he said.
The company exports its products to Malaysia, U.S. Canada, South Africa, Australia and GCC. About 15 per cent of revenue comes from exports.
