June 28, 2021
Keventer Agro plans to establish frozen foods and tetra pack milk businesses nationally in the next two to three years. It has taken this step due to the growing acceptance of frozen foods during the pandemic
The Kolkata-based company is targeting a 10 percent increase in turnover to Rs. 1,100 crore in the current 2021-22 fiscal from Rs. 1,000 crore in the previous fiscal, with much of the revenue expected from frozen foods and tetra pack milk businesses.
The company plans to keep its pouch milk and branded banana businesses at the regional level while expanding frozen foods as well as tetra pack milk businesses nationwide.
Right now, the focus is on pack milk and frozen foods, which the company can establish across India in the next 2-3 years.
Though Keventer did start the frozen foods category four years back was till last year present in the east India, which has only 10 percent of India’s total frozen food market. Till now they were concentrating in the east, now in a significant part of north India now and plan to expand in the south and west soon.
Keventer does not have its own manufacturing plant for frozen foods but has in place the supply chain network having tie-up with 7-8 major suppliers. There won’t be an investment in setting up manufacturing units but will invest in branding and distribution of freezers. In the current year, they plan to invest Rs 15 crore.
On its tetra pack milk business, the company plans to grow the ultra-high temperature treated tetra pack milk business at the national level, for which Rs 100 crore investment was made on a plant two and half years back.
From both these businesses, the company aims to double the revenue from the existing Rs. 50-odd crore by the end of this fiscal. Currently, the size of the frozen foods business in India is about Rs. 7,000 crore. Out of which 70 percent is institutional and the rest 30 percent is retail, the company said and added its key competitors in this segment are Godrej’s Yummy and McCain Foods.