TTK Healthcare, which has interests in consumer products, pharmaceuticals, foods, medical devices business, is setting up a manufacturing facility for its food business at Jaipur in Rajasthan to cash in on its ready-to-fry snack pellets. Necessary land has been acquired for the facility and the project will go on stream in the first half of 2014-15 fiscal, said TT Jagannathan, chairman, TTK Healthcare.

Addressing shareholders at the AGM on Thursday, Jagannathan said the company has placed orders with an Italian firm for plant and machinery and expect to invest R40 crore.

The plant location at Jaipur would be strategic from the point of view of material procurement, nearness to customers and would focus on manufacturing innovative and value added products. Encouraged by the recent response by the trade to the product innovations and the overall market potential, the company has decided to put up a new plant at Rajasthan, he said adding the company has also commenced a test marketing initiative by launching retail packs of ready-to-fry snack.

According to Jagannathan, the company which recently forayed into cardiology and diabetology segments under its pharmaceuticals business, has decided to exit the same owing poor response for its products. Even the performance of Ethical Products Division (EPD)/Animal Welfare Division (AWD) has been below expectations and this apart attrition continues to be a major concern for the pharma business, he added.

Considering the current market scenario, declining demand for printed map-based products with the advent of digital technology, the publication business does not appear to be a suitable fit in the company?s overall growth plans. It is, therefore, proposed to run down the operations in a phased manner, he pointed out.

For the year ended March 31, 2013, the food business netted an income of Rs 34 crore on a total turnover of Rs 382 crore as compared to Rs 13.50 crore on a turnover of Rs 353.36 crore in the FY12 fiscal. This division also made a profit during last fiscal as against loss in FY12 fiscal.

He said the company continues to be debt free except for the working capital borrowings of around Rs 22 crore and carries free cash balance of around Rs 70 crore.

On consumer products business, he said the Skore brand of condoms, being nationally distributed by the company, has got encouraging response within months of launch in November last and has been quite impressive both in terms of market share and reach across the country. The immediate plans for the current fiscal would include ensuring accelerated growth for the existing brands through higher promotional spends and launch of new products which are complementary to the existing categories being handled by the company.

Meanwhile, he said, the company has engaged the services of Bain & Company, a well-known international strategy consultants, to chalk out a strategic growth plan for the future. The assignment has just been completed and their final report to the board is awaited.