MTR Foods,the Rs 250-crore food processing major, plans to double revenue to Rs 500 crore and triple profits by 2012-end through investments in infrastructure and R&D.
The company said it is in the process of identifying areas for expansion and will invest in both organic and inorganic growth.
?We will be making investments in additional manufacturing facilities. We have already commissioned a new spices plant for Rs 15 crore. If there is need, we will look at acquisitions to drive growth as well,? said Sanjay Sharma,CEO, MTR Foods.
The company will double its marketing and media spend and increase focus on consumer behaviour studies and R&D to modernise brand image. To improve efficiency in distribution system, the company is also in the process of overhauling its network.
In the north, east and west of the country, it is yet to build a very strong brand consciousness. With its spices, it would remain focused on the southern states of Karnataka and Andhra Pradesh. However, with its instant food mixes, it will ramp up presence across India, the company said.
A fully-owned subsidiary of Norwegian food conglomerate Orkla, MTR Foods said its greatest challenge continued to be cost pressure due to food inflation.
?Handling cost pressures due to unprecedented inflation is going to be our greatest challenge. We have been dealing with it by optimising our man power utiliation, efficiency in procurement and affecting some price changes. Food inflation has impacted our margins,? said Sharma.