 "Naidu family firm Heritage Foods eyes Rs 1,000-crore turnover by FY19")
Heritage Foods is exploring multiple options to turn its retail operations profitable in the next two years with the help of a new set of investors and strategic partners, said Dharmendar Matai, its chief operating officer, retail & bakery, in a press release. It expects to cross a turnover of Rs 1,000 crore by FY19.
The company plans to invest up to Rs 20 crore every year to expand its stores across cities like Bengaluru, Chennai and Hyderabad, Mathai said. It has appointed management consultancy firm KPMG to look for strategic partners.
The company is into retail and consumer goods business and is promoted by the family of Andhra Pradesh chief minister N Chandrababu Naidu.
“We would like to add 75,000-1,00,000 sq ft of trading space per year for the next five years. We expect to cross Rs 1,000 crore turnover by FY19,’’he said.
In 2015-16, Heritage Fresh (its retail brand) is expected to close with a turnover of Rs 600 crore compared to Rs 495 crore last year, through its 105 operational stores. The company intends to expand to new cities after consolidating its presence in the Southern markets and turning in retail operations profitable.
“The retail division is expected to be EBIDTA positive from the current financial year. We have robust supply chain and distribution network in three cities where we operate,” Matai said.
Heritage Foods is also considering going online with an e-commerce pilot project in the food and grocery segment in Hyderabad.
“There are substantial investments being made in technology for e-commerce as we are in the process of rolling out a pilot for food and grocery in Hyderabad. We hope revenues from e-commerce to contribute Rs100 crore in the next three years,’’ he added.