DFM Foods has realigned its strategy, transitioning from Rs. 5 packs to larger denominations of Rs. 10 and Rs. 20, in response to shifting consumer preferences. CEO Vipul Prakash highlighted that this shift is driven by urban demand, the rise of quick-commerce, and escalating packaging costs. The company has intensified operational efficiencies and expanded its distribution footprint from the north to the east, with plans to extend into territories such as the west and south.
The CEO emphasized that this premiumization strategy enables the company to tap into larger retail formats and quick-commerce channels.
Across the packaged consumer goods sector, companies are increasingly focusing on premiumization to cater to urban demand, quick-commerce, and modern trade channels. Larger pack sizes also contribute to higher profitability amidst rising packaging costs.
Prakash highlighted DFM Foods’ accelerated efforts towards operational efficiency and distribution expansion, indicating recent forays into the East with plans for further expansion into the West and South regions.
Speculation arose following DFM Foods’ delisting from stock exchanges a year ago, suggesting that Advent International, holding over 96% of the company, may be considering an exit. However, Prakash dismissed these speculations, stating that the company’s primary focus is on bolstering its financial performance to attract potential strategic buyers in the future.
Prakash, who brings extensive experience from leadership roles at MakeMyTrip and PepsiCo, underscored the increased focus on innovation and new product development over the past year.
DFM Foods reported revenues exceeding Rs. 500 crore for the financial year ending March 31, 2023, according to business intelligence platform Tofler. Looking ahead, Prakash outlined the company’s plans to continue focusing on innovation and distribution to drive growth in FY25.