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MTR invests Rs 50 lakh to enter e-commerce, goes solar to save on power
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Wednesday, 22 April, 2015, 08 : 00 AM [IST]
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Nandita Vijay, Bengaluru
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fiogf49gjkf0d In a major initiative to maximise revenues from its 300 ready-to-eat and ready-to-cook products range, MTR has opted to take the e-commerce route.
In this regard, MTR has teamed up with a third-party developer, Tenovia Solutions, to build the portal and invested around Rs 50 lakh for the project. The company will commence offering the products online by the third quarter of this fiscal.
“The decision to consider e-commerce route was driven by the popularity of the online sales. Currently it markets via Big Basket and Amazon among others. The tie- up with Big Basket generates revenues of Rs 8 to Rs 10 lakh annually. Therefore, we cannot ignore this concept of online sales which is ubiquitous because we are in touch with the consumer directly to dispatch the orders,” stated Sanjay Sharma, chief executive officer, MTR Foods Ltd, while speaking to FnB News.
The company has invested an additional Rs 2.2 crore to set up a 300 KV solar power plant at its production facility at the Bommasandra Industrial Area in the outskirts of Bengaluru. The newly set up solar photo-voltaic plant would help to reduce 307 tonne of CO2 a year and reduce power consumption demand by 22%. The plant will generate power of 0.48 million units and will be utilised for all loads of plant production and utilities.
“This is a major step in the area of environment sustainability. The Solar Photo Voltaic Plant is in addition to the Briquette Boiler and Hot Air Generator that we have launched previously that reduce more than 2,000 tonne of CO2 per year. We would gear up to introduce similar initiatives to save the environment around us,” said Sharma.
Providing details on the e-commerce sales, the MTR chief said that the concept would take around a decade to actually drive the revenues. Modern trade formats required 15 years to take off in India. “To begin with, we view the earnings from online sales to be negligible. The primary intent is to ensure accessibility and availability. It is important for consumers to have an understanding of our range which spans from spices-masalas to breakfast, lunch, dinner offerings to snacks, papads and pickles.
The company has been marketing its range through its dedicated outlets: ‘Namma MTR’ stores which generates sales of around Rs 14 lakh a month. Its products are on the shelves of 1.18 lakh general outlets of which 1.11 stores are in Karnataka.
In 2007, MTR was acquired by Norwegian food giant Orkla in 2007. The company clocked revenue of around Rs 600 crore. Around 35 per cent of the revenues came in from spices-masalas, 30 per cent from breakfast, lunch, dinner and dessert mixes and the remaining came in from snacks, papads, pickles, exports and institutional sales.
The company also sources most of its raw materials from Karnataka which accounted for 50 per cent of its sales revenues.
MTR manufacturing, which has a total annual capacity of 45,000 MT, spans over a built-up area of 24,585 sq m and includes eight manufacturing plants.
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