Emami Agrotech, best-known for its Healthy & Tasty edible oil brand, is stepping up its push into the institutional food services market, setting an ambitious Rs 2,000-crore revenue target from the HoReCa (hotels, restaurants and caterers) segment within the next two to three years, Aditya V Agarwal, director, Emami Group, said in a conversation with FE.
The company has created a dedicated food services vertical and rolled out a new sub-brand called For Chef under the Healthy & Tasty brand designed for professional kitchens and bulk buyers, Agarwal said. The company has also redesigned its route-to-market strategy to cater to the fast-expanding ecosystem of restaurants, airport and mall food courts, quick-service chains, cloud kitchens and institutional caterers, he said.
An overview of Emami Agrotech
Emami Agrotech is an unlisted company, whose turnover is estimated at Rs 20,000 crore. Apart from edible oils, the company has a presence in biodiesel and foods. The latter (foods) contributes around Rs 500 crore to overall turnover, experts said.
Agarwal says that Emami Agrotech also plans to expand its food offerings further, including potential entries into ready-to-cook and ready-to-eat categories, which are witnessing strong demand in both retail and institutional channels.
“In the coming months we will keep adding more categories — whether condiments, ready-to-cook gravies or other processed food products — depending on what best fits our strategy,” Agarwal said.
The company is also open to acquisitions if they offer complementary product portfolios or stronger distribution networks in priority markets, he added.
“We have traditionally been strong in edible oils. Over the past few years we have added spices and staples including atta, maida, suji, besan and soya chunks to our portfolio. Together, these products also form a large part of the basket required by the HoReCa and food services industry, prompting the move to strengthen our presence in this segment,” Agarwal said.
HoReCa initiative to scale up quickly?
The company expects the HoReCa initiative to scale up quickly as institutional consumption remains robust. “While we are targeting around Rs 2,000 crore in the next two to three years, but with the team and strategy in place, it could happen faster as the potential remains significant,” Agarwal said.
Distribution will follow a hybrid model, combining distributors with direct institutional sales.
“We will appoint distributors in key markets, some exclusive and some multi-brand. At the same time, we will have a direct reach team that works with large institutions,” Agarwal said.
The company is also building a technical business development team that includes chefs and product specialists who will conduct demonstrations for restaurant chains and large kitchens, helping them optimise the use of its products.