RP–SG Group is targeting to achieve ₹10,000-crore turnover by 2023 from the FMCG segment (which is looked after by RP SG Ventures) which it is planning to scale up with newer products in the existing snack food segment. It is also eyeing the personal care products segment.
The group, which has a presence in power and natural resources, carbon black, IT, education, retail, media and entertainment, forayed into FMCG business with packaged foods under the Too Yum brand in April 2017, following it up with the acquisition of a majority stake in the Rajkot-based Apricot Foods Pvt. Ltd. with the e-Vita brand.
Monthly sales of the products under these two brands now average ₹50 crore.
“We are targeting ₹1,000 crore annualised revenues by mid-2019,” said Sanjiv Goenka, chairman, RP-SG Group. Its third manufacturing unit — at Telangana —would be operational by December 2020. It also has a plant in Hyderabad.
Telangana plant
Coming up on 27 acres at an investment of ₹247 crore, the Telangana plant would employ 700 people and have a 40,000-tonne annual capacity.
At a recent investor presentation, the company said that it had created a manufacturing capacity of 13,000 tonnes per annum of extruded snacks, establishing a national brand.
While the business started with baked snacks, it would also enter the non-baked snacks segment, he said. “We have a 2.5% share in the western snack food segment estimated at ₹1,500 crore”, he added.
From November, the FMCG business had also begun exports to Dubai, Singapore, Oman and Qatar, Mr. Goenka said, adding more countries would be included in the list. The company is also setting up a R&D facility in Thane by early 2019. Indications are that this would have a laboratory for snacks and bakery items and also for personal care products.
Asked about the personal care foray, Mr. Goenka declined to comment.
