Elmac plans to create brand recall, double turnover

The Kolkata-based Rs 50 crore company, Elmac Foods, aims at doubling its turnover in two years, with new product launches, better packaging, and exports to new destinations.

It is also planning a major brand building exercise to sell convenient products under its own brand name.

"So far we have primarily been the manufacturers for other brands like Baidyanath, Arambagh and Haldiram, but now we plan to boost the Elmac brand and create a brand recall in the niche product category," said Riddhima Thacker, director for product development, Elmac Foods.

The company would foray into the juices segment in another two months and could even launch fizzy drinks. It would also launch products like lime and lemon juices for salads and barbecues, initially only at hotels and restaurants in Kolkata.

The company would launch variants in mustard sauce and the plan is to bring about innovation.

According to Vinod Thacker, managing director, Elmac Foods, the convenient foods category is all about innovation and because of intense competition, it is difficult to develop break-through categories. Elmac, on its part, would launch items like mustard-with-mango and mustard-with-pickle.

"Although the same products will be sold in all markets, focus would be on localisation of tastes. For instance, in England, people like salty chutney with very little chilly, while in India, namkeen or spicy chutney sells more," added Riddhima Thacker.

Elmac Foods, at present, has products like pickles, chutney, pastes and sauces for cooking. The company earned 75 per cent of its turnover from exports to the US, Japan, the UK, Europe and Australia. It is also in the process of finalising a joint venture partner in South Africa for manufacturing and distribution.

"We are planning to set up a factory in South Africa for logistics ease. Elmac would be a 49 per cent partner and would invest Rs 5 crore in setting up a factory with the production capacity of 10,000 kilo a day, to start with," said Vinod Thacker.

In South Africa, Elmac would sell through the 'Pick N Pay' chain stores. Elmac is also looking at another joint venture partner for a bottling plant in Manchester at an investment of Rs 5 crore and would only bottle and label products while the finished goods would be shipped from elsewhere.

At present, the company has three factories in West Bengal, one in Gujarat and one in London and it sells through retail chains across the globe.

For instance, in Australia, it sells through Woolworths, while in the UK, through retail chains like Tesco and Sainsbury, and in the USA through Costplus. In India, Elmac is sold through Food Bazaar and some other stores.