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Reitzel India to augment global foray, keen on acquisitions
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Saturday, 29 December, 2007, 08 : 00 AM [IST]
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MV Chandrashekar, Bangalore
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company known for its specialisation in pickled vegetables is now embarking on a global pathway to enter Russia and USA. The company will export gherkin pickles.
The company is also looking out for potential acquisitions. The factory which is HACCP, BRC & IFS certified and USFDA compliant is situated in KIADB industrial area in Kunigal in Tumkur and is spread over 11 acres.
The Switzerland-based Reitzel was started in 1909 and set up independent operations in France, Turkey and India (2005).
The company's Hugo Reitzel brand is for the hotel and catering sector. It also specialises in dressing based on mustards and vinegars. It also has a range of ketchup and mayonnaise, salad dressings and fresh sauces (hot & cold).
All products are widely distributed across retail outlets globally and it also undertakes orders for private labels.
Karnataka was opted for its manufacturing plant going by the potential of gherkins that are popular globally. Since 1992-93, gherkins were dispatched in semi processed conditions to its unit in Switzerland. In order to capitalise on the local condition, the MNC decided to set-base in Karnataka where gherkins could be packaged for export directly from here, Vivek Raja Padmanabhan, CEO, Reitzel India told F&B News.
The capacity of the unit is 30,000 tonnes, but they now produce around 15,000 tonnes. By 2010 they will go full steam, said Padmanabhan.
More than 5,000 farmers are associated with Reitzel under the contract farming initiative. Gherkins are cultivated in Tumkur, Hassan, Bidar, Rannebennur, and some parts of Tamil Nadu and Andhra Pradesh.
In order to maintain quality and guarantee the safety of its supplies the company has introduced a rigorous follow-up and verification policy for its raw material - from selection of seeds to production areas to packaging in the factories they ensure good agricultural practices are maintained.
An investment of 20-25 crore was pumped in for the Kunigal facility which is a cent percent export oriented unit having four lines.
In India, Reitzel is ranked third after Global Greens and Inter Garden. However, it holds a leadership status in Switzerland and France.
According to Padmanabhan, there is a huge competition in the gherkins sector but quality is the lone driving factor.
The shelf life of the gherkins in jar is three years, while for can is two years and in bulk is 18 months.
Plans are on to start organically grown gherkins by 2008.
Current revenues of the Indian operations is Rs 23 crore and expect to touch Rs. 40 crore in the FY 2008. By 2010 they hope to be a Rs 100 crore company in the country.
While export is their only focus, the company is also keen on tapping domestic consumption and by 2010.
Besides gherkins, pickled chillies, cherry tomatoes and onions are also offered by the company.
The trends are for value-added products. Packaging is also a major attraction which includes eye-catching polythene packs, plastic pouches, and glass jars.
The company adopts rain water harvesting and plans are on to introduce drip irrigation to boost the production.
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