Vikram Agarwal, MD, Green Dot Foods
Looking at present scenario how are you planning to expand your area of sales and production points across the country?
Cornitos future strategy will be directed to bring innovative products that are agro based, focusing on healthy snacking and providing value for money to the consumers. This year, brand is working on foraying into the non-corn-based snacks category, most likely the baked format. Brand is expected to touch the Rs 100-crore turnover mark by the end of the year on the back of product and distribution network expansion.
Brand vision is to promote a healthy and active lifestyle among people across geographies. With a Pan India presence, brand is all geared up for the opportunities awaiting them.
There is new technology being introduced every day in the market for increasing automation and food safety. What is the latest edition at your end in your existing units or in upcoming plants?
We are coming with state of the art plant with fully automatic machines done with an aim for capacity expansion and manufacturing of new product lines. We are also doing Modernization of current plant prioritizing the most important upgrades to leverage emerging technologies and open new opportunities.
It has been observed that there are not many national brands in the snacks and namkeen segment in India. What are the reasons behind the slow expansion of the companies?
Important reason for slow growth is that the majority of the population has low-income levels and cannot afford processed foods. The high cost of packaging pushes up the cost of the processed items and thereby makes them out of reach of the common man. Secondly lower spending in urban centres and slowdown in rural growth has further constrained expansion of the companies. Product innovation can help the Food industry regain lost ground and surge ahead by offering value products to the consumers.
Is the slow expansion also because of the local taste preferences? How import is the market research before going for expansion in newer territories?
Market research is crucial before going for expansion in newer territories as each region offers unique tastes & culture. Food companies that cater to community preferences are better placed to grow in India. Regional brands play a key role driving the business with their hands-on knowledge of the local consumers and their needs.
Now food and beverage companies after gaining key insights from Market research are adding ethnic flavours and indigenous ingredients to their packaged snacks and beverages, as consumers seek local tastes and regional palates.
In the lockdown period and thereafter during the unlock process, there was an acute shortage of labour in the food factories. What measures you are applying now to reduce manpower dependency?
We are anticipating rise in demand both in global as well as domestic markets for Cornitos products and for that we are planning process automation as well as skill development of existing workforce to cope up with increasing demands. Cornitos production unit will bring process efficiency at micro level through process automation, ensuring breakdown prevention and increasing production efficiency to reduce manpower dependency.