The health-centric food products company Pansari Group is aiming to close FY24 at approximately Rs 1800 crore in revenue — a 30% growth from FY23. The company closed the last fiscal at Rs 1400 crore. This year, the focus for the company remains on value-added products, Shammi Agarwal, director, Pansari Group, told FE.
“Value-added products today contribute around up to 15% of the overall revenue, which will increase to 20% in the next two years. The commodity business is also increasing, however, in the value segment the margins are good,” he said.
In a move to further ramp up its portfolio of value-added products, it is all set to launch a green and floral tea brand ‘Tvoy’ next month. Having launched ‘chai’ in January, Agarwal said the company is eying Rs 100 crore worth of sales from ‘Tvoy’ in the next two years. Other products in its value-added portfolio include indimix ready-to-cook range, masala and seasonings, among others.
Of its 450 stock keeping units (SKUs), edible oil accounts for around 55% of its business. Other commodities, such as rice, contribute about 20% and wheat, dalia, sugar and maida account for 15%.
With products ranging from edible oils to instant mixes, the group was mainly limited to North India until a few years ago but now is expanding into the West and South of India. In FY25, it expects the West and South to contribute 40% of the business (up from 30% currently), while the remaining comes from the North.
With no plans of entering the East, it has a total of six manufacturing plans and nine warehouses and has recently opened depots in Ahmedabad and Mumbai to increase distribution further.
In addition to the 1,70,000 retail touchpoints and expanding network of 800 distributors, Pansari Group’s quick-commerce sales contribution has increased over the last few years — from 15% at present, it is expected to reach 25% by the end of the next financial year, said Agarwal.
In terms of international presence, it exports to more than 80 countries, which together contributes to over 20% of its business. As of now, the company remains unimpacted by inflation and hasn’t witnessed any decrease in its rural or urban demand.