During the pandemic, the demand for dry fruits and nuts shot up there by increasing their sales in India. Encasing this opportunity, Gunjan Jain, MD at VKC Nuts, a traditional player in the Indian dry fruits and nuts industry, grabbed the opportunity to transform the nearly 100-year-old company into a modern omni-channel player. Jain talks about the potential of the category and the company’s plans.
VKC Nuts, which is into the processing, packing, export, and import of nuts and dry fruits, was established in Jammu in 1926. Nutraj, the umbrella brand of VKC Nuts, is the latest retail and consumer brand in the market. The company reported a 25% growth in revenue to Rs 900 crore in the year ending March 31st, 2022 and has set a target of Rs 1,500 crore in the next fiscal year. VKC Nuts currently has seven units in Bengaluru, Delhi-NCR, Mumbai, and Jammu & Kashmir.
Some of the factors driving sales were globalisation and increased awareness of the health benefits of nuts and dry fruits.Especially after COVID-19, consumers associated nuts and dry fruits with good health. Similarly, the growth was also connected with rising income levels.
The per capita consumption of nuts and dry fruits is still very low as compared to the US and other developed markets.
Jain said, “While the industry is still very fragmented, VKC is among the largest players in the market.” If one looks at the numbers, we have around a 4% market share. By estimates, the industry is pegged at Rs. 20,000 crore, and we are nearing Rs. 1,000 crore. We plan to open eight more manufacturing units by 2024, each with a capacity of 10,000 metric tonnes. We also aim to have a total of 25 company-owned stores and 50 franchise stores by the end of 2023.
He also said that the industry’s taxation is very high. Walnuts are available at a 120% tariff and raisins are at a 105% tariff. If something could be done on the tariff front, it would help everyone. There should be more awareness on the part of the authorities, especially as these are healthy food items. It will help expand the category.