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Desai Brothers to invest Rs 50 cr in upgrading 4 manufacturing facilities
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Friday, 27 November, 2015, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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Desai Brothers Ltd (DBL), primarily known for its pickle brand Mother's Recipe, has invested an additional Rs 50 crore to optimise its manufacturing potential. With this investment, the company plans to upgrade its four manufacturing facilities in Gujarat, Maharashtra, Karnataka and West Bengal.
On the expansion and increase of capacity in the existing setup, Sanjay Desai, executive director, DBL, said, “At Mother’s Recipe we are always on the lookout for business expansion to cater to the growing demand. Currently we are looking at four manufacturing units to upgrade the production capacity for domestic and international markets. These will be located in the states of Gujarat, West Bengal, Karnataka and Maharashtra - Pune with an investment close to Rs 50 crore over the next two years for setting up and upgrading capacities in these state-of-the-art manufacturing facilities.”
The manufacturing upgrade is being carried out to scale up production capacity with focus on catering to demands from export markets like the Middle-East, Europe and the US, which currently account for 40 % of the total business. Hitherto, the new factories and the existing ones would be upgraded as per requirements of international standards and certifications for manufacturing quality packaged food & beverage products.
“Even in the domestic markets, the expanded capacity will enable us to launch new products and categories and increase the existing outputs to meet the growing demands. Mother's Recipe includes 12 categories of products – pickles, cooking and condiment pastes, curry & gravy pastes, chutneys, blended spices, ready-to-cook spice mixes, ready-to-eat, instant breakfast mixes, papads and ready- to-fry products, curry powders, mango pulp and canned foods in 150 different variants. All the 12 categories will be spread across these four manufacturing locations to enable us to get the locational benefits nearer to the source of the raw materials and the markets,” he added, while speaking about the new launches in the domestic market.
“All these plants are expected to be fully operational from mid-2016. In the West Bengal plant which has been acquired, Elmac Agro Manufacturing is being upgraded in its manufacturing capabilities and capacity. Similarly, the other units, new facilities are being added and upgraded to increase the product range and production capacities,” informed Desai.
He pointed out that all efforts in improving the production facilities would start showing up from the second quarter of 2016. With the recent acquisition of Kolkata-based Elmac, DBL will be eyeing a growth of 30% in the current financial year against a turnover of over Rs 200 crore in 2014-15.
“Apart from the pickle category where we command a robust market share of 25%, the company intends to grow its other verticals like the RTE, RTC and instant mixes with a range of new product launches under each category. We also plan to introduce new categories in the domestic markets such as chutneys, ready-to-eat meals and curries, and add new innovative range of instant mixes, ready-to-cook spice mixes, cooking pastes and ready-to-fry products. Apart from this, the entry of Mother’s Recipe into the food service market will be provided from these new upgraded capacities. All these increased growth in sales and new products will be catered by these additional capacities that we are setting up,” explained Desai.
DBL is also planning to establish its presence on e-commerce platforms for RTC and RTE segments. A pilot trial held in this regard in Bangalore was successful.
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