The Pollachi plant, spread across 30 acres, will churn out the ready-to-cook products. The company has planned to invest around Rs 10 crore in this new business.
Samyuktha Vanavarayar, director of ABT Industries Ltd, said the company would procure raw materials meant for the segment directly from farmers by leveraging the village-level procurement infrastructure .
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In Phase I, the company plans to launch these products in Tamil Nadu and Kerala and would spread to other parts of the country in a phased manner.
It would use its retail network of over 7000 outlets and 20 exclusive Sakthi stores to drive its sales.
It is planning to expand its product portfolio in food business by adding cheese, ice cream and flavoured milk next year.
The ready-to-cook market is worth around Rs 500 crore and was growing 20 per cent in volume and 25 per cent in value terms. It is expected to grow at an annual growth rate of around 20-25 per cent over the next five years.
According to the company, the new range of instant mixes would help them strengthen its offerings. ABT Industries Ltd entered the dairy business in 1994 and markets milk & milk products under the Sakthi brand.
"Over a period of time, the food and dairy business would be structured in a way that ABT Foods would be the mother brand under which the Sakthi brand of dairy products would work as a sub-brand," said Vanavarayar.