JK Spices to expand capacity

J K Spices, the Rs 50 crore whole and blended spices brand, is investing close to Rs 20 crore in retail foray as well as capacity expansion at its existing manufacturing units.

Money was raised through internal accruals.

Speaking to Business Standard, Vijay Jain, vice-president - marketing and sales of J K Spices, said, "We will invest Rs 15 crore in setting up 40 branded retail outlets within three years. We inaugurated our first outlet in Ahmedabad in February this year for an investment of Rs 60 lakhs. Out next outlet will be in Kankurgachi in Kolkata in April. We will set up more outlets this year in Asansol and Kolkata."

Christened 'J K Lifestore', the stores will span across 3,000 sq ft and would sell about 7,000 grocery items. It is also planning a few hypermarkets in eastern India within three years that would span across 18,000 sq ft.

"In most modern retail outlets these days, 50 per cent of the stock is grocery. Since we already have 38 items in spices and are in the process of adding more food items, we thought our branded retail format will be the best for visibility and increasing sales," explained Jain.

Currently the company sells through retailers like Vishal, Big Bazaar, More, Spencers, and C3. The company will launch 30 more products this year like dals, papads, pickles, oils and ready-to-eat products.

The company plans to foray into the Rs 80 crore ready-to-eat foods segment with products like instant 'rajma', vada', pineaplle slice, and pudding.

It is also investing Rs 5 crore in its Kolkata plant to double production capacity from 4,000 tonnes per annum currently to meet the demand that launch of new products would bring about. The company's Kolkata plant was set up recently with an investment of Rs 1.5 crore.