MTR Foods rejigs business strategy; separate units set up to cater to varying tastes in South.

Packaged food products company MTR Foods has rejigged the business to focus on local market through separate strategic units.

The company, which closed last fiscal with a turnover of about Rs. 900 crore and growing at a CAGR of 14 per cent, expects its revenue to top Rs. 1,000 crore this fiscal. About 10 per cent of revenue comes from exports that cater to Indian diaspora.

New launches

With consumer taste and requirements varying even within States, the business is now being handled through various units, one focusing on Karnataka, Tamil Nadu and some other parts of South, the second arm focusing on Andhra Pradesh and Telangana and the third one on rest of India.

Introducing two new products, Masala Karam, for everyday cooking, and ready to cook Seviyan Upma, the company said the launch is after extensive consumer research. Sanjay Sharma, CEO, MTR Foods, said “Telangana and Andhra Pradesh together contribute the second highest to our India sales . This year, we have put together a strategy to focus on the two states both in terms of launch of new products as well investments and strategic initiatives.”

With the aim of developing a masala blend that is relevant to the local Telugu cuisine, the company has specially crafted MTR Masala Karam Powder for homemakers in Andhra Pradesh and Telangana. It comprises a special blend of Guntur chillies, garlic, coriander among other spices.

The company plans to invest about Rs. 30 crore in new products, business expansion and marketing plans. These product launches will be supported by a 360-degree marketing plan including new TVCs, in-store activation, outdoor and digital programmes, Sunay Bhasin, CMO, MTR Foods, said.

PTI adds: MTR Foods has set up Rs. 50-crore seed fund to invest in start-ups engaged in food processing and is actively considering investing in a couple of firms, saidSanjay SharmaCEO of MTR Foods. .

“We will be a minority partner in every investment that we want to make. So far, we have done one investment,” Sharma added.

“We keep evaluating many more options (for investment) which come true in this way. We are in the process of investing in a couple of other start-ups,” he further said.

HBL