Don’t miss the latest developments in business and finance.

Heritage Foods focusing on exports

As the company is going global, its board has decided to drop India from its nomenclature

Image
Prashanth Chintala Chennai/ Hyderabad
Last Updated : May 07 2013 | 11:03 PM IST
Hyderabad-based Heritage Foods (India) Limited has set its eyes on expanding its business beyond India. It has already started exporting ghee to Singapore, flavoured milk to Dubai, grapes to Netherlands and butter to Nepal.

"We are planning to export spices, particularly turmeric, coriander and chillies, this season," company president, M Sambasiva Rao, told Business Standard.

As the company is going global, its board has decided to drop India from its nomenclature. The Registrar of Companies has also accepted the change. It is now awaiting the final nod from its shareholders at its AGM to be held this month. According to Rao, profit margins are higher in exports when compared with domestic sales. "With better margins, we can also pay a better price to farmers," he said.

More From This Section

Heritage, promoted by the kin of Telugu Desam Party president and former chief minister N Chandrababu Naidu, is engaged in the business of dairy, agricultural products and organised retail.

Rao said the company was still on the look out for a strategic partner or investor in its retail business, which was yet to achieve break-even.

"We have initiated talks in this regard but nothing has happened so far," he said, adding, as of now, there was also no sight of anything happening.

Rao, however, said the company was registering a year-on-year growth rate of 25 per cent and that retail business was heading towards achieving break-even.

In 2011-12, Heritage posted a turnover of Rs 1,393.4 crore and a net profit of Rs 9.33 crore. Its retail division achieved a sales income of Rs 250.28 crore.

The company, which used to have 75 retail stores, currently has 67 stores spread across Chennai, Bangalore and Hyderabad. Eight stores were closed last year as they were unviable.

"Though the number stores have declined, the trading space has not reduced. Our new stores are in larger format and hence has larger trading space," Rao said.

The company has decided to set up a 2-Mw solar power plant near Shamirpet on the city outskirts for captive consumption. The plant is estimated cost around Rs 16 crore.

Also Read

First Published: May 07 2013 | 8:28 PM IST

Next Story