Cremica Foods, a well-known liquid condiment manufacturer that supplies to some leading fast-food chains, like McDonald’s, Pizza Hut, Domino’s, and Subway, is going to invest ascetically to scale up its existing manufacturing capacities with Rs. 50–100 crore in investments over the next four to five years.
According to Akshay Bector, the chairman and managing director of Cremica Foods, their Mega Food Park has helped reduce capital costs. “Since we already have the required infrastructure in place at our food park in Himachal Pradesh, we don’t necessarily need huge investments.”
Bector added that the CAPEX would also be reduced further in the coming years. Currently, Cremica has two manufacturing facilities in Punjab and Himachal Pradesh.
Cremica posted revenues of Rs. 250 crores in FY22 and now expects to reach Rs. 500 crores in turnover by FY24. It is in the line to grow the business organically and expects the revenues to be at Rs. 350 crores in FY23.
It also exports its products to markets such as the US, Middle East, and Southeast Asia; this is a relatively new channel of operations and makes up one percent of the overall revenues.
Furthermore, Cremica plans to launch a new line of products in the pickles, snack foods, or beverages segments by the next fiscal year and expects a five percent growth rate from the new line of business, stated the chairman.
The company claims it holds 10 percent of the Rs. 44,000 crore condiment market and competes with players like Delmonte, Veeba, and Dr. Oatkar.
A few years ago, Cremica announced going public but has now deferred its decision. “We will not be going public for at least a year or two.” “We don’t see traction in the financial market for some time, and for a company to go public at a time when investors may lose money is not ideal,” explained Bector.