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Mothers Recipe to enter frozen food space; eyes Rs 500 cr turnover

Pune-based packaged food brand Mothers Recipe, which is eyeing a turnover of Rs 500 crore by 2018-19, is planning to enter the frozen food category within the next two years

Pune-based packaged food brand Mothers Recipe, which is eyeing a turnover of Rs 500 crore by 2018-19, is planning to enter the frozen food category within the next two years. Mothers Recipe recorded a revenue of over Rs 200 crore in 2014-15, while the estimated turnover for 2015-16 is Rs 250 crore. “For financial year 2016-17 also we are expecting a 25 per cent growth. In the next three years we, are looking at Rs 500 crore turnover,” said P Rajan Mathews, vice president – marketing and sales, Desai Brothers – food division (Mothers Recipe).

The brand, as part of its foray into the frozen food category, will set up a dedicated unit in Gujarat. Mathews informed, “Frozen food is something we will see tremendous growth in. Two years down the line, we have plans of setting up a frozen unit for exports and domestic market. We are looking at frozen vegetables and frozen vegetarian snacks. Frozen vegetarian snacks is growing at 21-22 per cent CAGR and that is one of the segments which will grow. The only lacuna is cold chain, which has to be developed.”

The global frozen food market is estimated to reach US$ 306 billion by 2020, according to Allied Market Research. The brand is present in the ready-to-eat food category in the exports market and will enter the domestic market in the third quarter of this fiscal. Mathews said that the company is targeting a market share of 10 per cent in the first two years in the category.

The brand, which has 25 per cent market share in the Rs 450-crore organised pickle industry in India, plans to increase its range. It currently sells 47 varieties of pickles in the domestic market and exports 60 varieties. In the Rs 300-crore cooking paste industry, it has a market share of 20 per cent and will expand its portfolio by adding onion and tomato paste in the last quarter of this fiscal. Ready-to-cook spice market is estimated to be around Rs 400 crore and Mothers Recipes’ market share is 10 per cent. The brand plans to take its total to 30 variants in the category from 24 at present.

The company has two exclusive stores in Pune and also plans to roll out more in other major cities in the future. “We have started in Pune with two stores. We are looking at it as an experience zone. This year we should have three in Pune. We will wait for a year and then roll out in major cities. At least two to three stores in each major city,” he revealed.

Mothers Recipe currently exports to 40 countries, which contribute to 40 per cent of the company’s turnover. With the increasing popularity of Indian cuisine globally, it is tweaking its distribution model and focusing on the large retailers rather than just specialty Indian or Asian stores. “We are looking at moving from Indian diaspora to mainstream. Our distribution model will have to be different and we have to target retailers like Carrefour, Tesco, Walmart. We have started it in Australia where we are at Woolworths and its doing well,” stated Mathews.

(PTI)

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