Bagrry’s India, a maker of on-the-go breakfast products, is mulling a new plant and an expansion of its distribution network as it sees rising demand for its oats, muesli and cornflakes with revenue projected to reach ₹120 crore this fiscal, Aditya Bagri, the company’s director said.
“We have about 70,000 retail outlets,” Mr. Bagri said in a phone interview from New Delhi. “It is an omnichannel strategy as we are present in all modern-day platforms such as e-platform; we are on the menus of SpiceJet, IndiGo Airlines, Vistara and also leading hotels such as Taj Hotels.”
“We have added about 20,000 retailers over the last one year. We see ourselves crossing the 100,000 mark very shortly. Over the next 2-3 years, our aspiration will be to touch something like 200,000 outlets.”
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4.2% growth rate
Global industry revenue for on-the-go breakfast products will see compounded annual growth rate of 4.2% from 2016 to 2026, reaching $1,853.2 million by 2026 end, according to a study by Future Market Insights.
The market in Asia-Pacific excluding Japan will account for more than 18% share of the global market. “Our aspiration is to touch ₹400 crore by 2020, which is extremely aggressive,” Mr. Bagri said. “This year, we expect to grow about 40% to ₹120 crore. More products are being added.”
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Bagrry’s exports to countries such as the U.S., Canada, Sri Lanka, Bhutan, Nepal, and the Maldives account for 4% of its overall revenue.“Exports are giving us the tailwind. It is evolving rapidly,” he said.
It is planning to expand its organic food products and deepen presence in the snacking segment. Presently, it has three Bagrry’s On the Go outlets in New Delhi and the company is looking at other cities to “replicate the model and scale up,” Mr. Bari said.
“We are looking at investing in existing facilities to conceptualise something new based on our core products. There may be future investments in a new plant but we are still in the planning stage,” Mr. Bagri said.