| With well-known brands like Sundrop, Healthy World, ACT II and Rath as part of its portfolio, AFTL aims to build one of the largest and most profitable food businesses in India. The company has an expansive distribution network and its products are available in over 1.25 lakh outlets across the country. In an interview to Business Standard, AFTL president Utpal SenGupta says that the company has several initiatives going at the moment. Excerpts: |
| Has entry of MNCs into the Indian food processing industry infused any dynamism into the sector? |
| Entry of MNCs into India have brought in varying degrees of dynamism and competitiveness in different industries. The food industry tends to be more grounded in local tastes and traditions. |
| To that extent, impact may be relatively less. However, going forward, as the Indian economy gets more integrated with the world economy and the barriers for import and export of food products come down, I expect the impact to grow. It'll be in the flow of basic commodities on one hand and in high-end value added foods on the other. |
| What is the potential for branded food processing industry in the country? |
| Conventional logic says that with growth in incomes coupled with increasing search for convenience by consumers, the branded food processing industry will grow. Change in the retailing environment as we progressively move to large self-service formats will be another powerful driver. |
| The entry of newer brands and categories of processed foods is indicative of that potential. That being said, development of the processed food industry in India may not follow the same path it has in other countries due to the unique combination of circumstances here. As we have seen, in many industries, telecom for example, India has skipped one or more phases of 'development'. |
| In a similar way, in processed foods, the consumer may leapfrog certain stages. And someone who will be able to correctly predict what tomorrow's consumers will be looking for will benefit from his prescience and insight. I'd say we are in for very exciting times to come and there will be great opportunity to innovate and experiment in the evolving Indian food market. |
| AFTL's aim is to build one of the largest and most profitable food businesses in India. To what extent have you been successful in this regard? |
| We operate in three different segments of the food industry and expect to grow in all of them. In the Branded Edible Oils business, we intend to grow by offering value to consumers through differentiated brands and variants for her different cooking needs. For example, through Sundrop Heart, we are appealing to the consumer who is concerned about heart health, while with Crystal we offer purity and good value to the budget conscious consumer. |
| In the branded foods business we expect to grow, among other items, with ACT II, the number one popcorn brand in the world. It addresses the consumers' snacking needs through various innovative products. |
| In one of our initiatives, we vend hot popcorn in cinema halls and at other places of entertainment. We also sell popcorn in ready-to prepare formats and offer differentiated ready-to-eat snacks under the ACT II umbrella. Finally, through our commodities business, we expect to grow in a select range of value-added agri commodities. One new initiative in this area is to sell ingredients to the growing food service sector in the country. |
| How successful is your atta business? |
| We found out that it would be difficult to create a successful atta business unless we offer something special to the consumer. We have, therefore, for now decided to sell our atta only in select markets till we have such a product. |
| How are your 'Just Fries' vending institutions performing? |
| We sell frozen French fries to several hotels and you are likely to find 'Just Fries' in their restaurants. However, we have decided to focus our vending efforts behind popcorn in various flavours. |
| You will find vending machines for hot ACT II popcorn spread across the country in places like parks, movie theatres, shopping malls, railway stations, airports,exhibitions, etc offering consumers a great popcorn-eating experience. |
| What is your short-term and long-term outlook on the branded edible oils segment? |
| The branded edible oils market is growing at double-digits and our immediate focus would be to increase the franchise of Sundrop and Crystal in this market. As mentioned, we intend to grow in this market by offering value to consumers through differentiated brands and variants for her different cooking needs. What are the latest initiatives of AFTL? |
| We have several initiatives going at the moment. For instance, we are working with Narayana Hruduyalaya to help young children with heart ailments as one of our initiatives with Sundrop Heart on the occasion of the World Heart Day. |
| Expanding Act II vending and ready-to-eat snacks is another such, as is addressing the needs of the food service sector. |
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