The company is setting up a new plant with a capacity of 40,000 tonne per annum in Telangana with an investment of `247 crore. The facility is expected to commence operations by third quarter of FY20.
RP-Sanjiv Goenka Group on Thursday said its FMCG business is expected to break-even by the next financial year with the business witnessing a turnover growth of 15-18% on month-on-month basis.
“Monthly turnover from FMCG business is around `50 crore now. On month-on-month basis, turnover growth has been between 15-18%. Hopefully, the business will break-even by next year,” said group chairman Sanjiv Goenka during a press conference here.
The group, which has unveiled its newest snack product range ‘Karare’ under the brand “Too Yumm!”, entered the FMCG space last year. It brought the E-Vita brand under its portfolio by acquiring a controlling stake of 70% in packaged foods company Apricot Foods in 2017. According to Goenka, his group’s FMCG firm Guiltfree Industries is having a 3.5% market share in the country’s western snacks market in a span of 17 months.
“We started exporting our products to Dubai, Singapore, Oman and Qatar. We will look at Europe and markets of Malaysia, Indonesia, Hong Kong and others,” he said.
Guiltfree Industries is now sourcing products from four locations across the country and has two manufacturing plants of its own in Rajkot and Hyderabad. The company is setting up a new plant with a capacity of 40,000 tonne per annum in Telangana with an investment of `247 crore. The facility is expected to commence operations by third quarter of FY20.
The group was pursuing a target to clock `10,000 crore revenue from its FMCG business in the next five years, Goenka said, adding that in coming months there were many products “ready for launch” under different categories.
Notably, after the proposed demerger of CESC, the group’s flagship, its FMCG business will be under RP-SG Ventures, which will also house IT and Quest Mall. According to the group’s restructuring plan, the new entity will also be a listed company. The group is now awaiting capital market regulator Sebi’s response after getting approval from the Kolkata bench of the National Company Law Tribunal (NCLT).