Priya Food Products, makers of biscuits, cookies and cakes under the 'Priya' brand name, is investing Rs 10 crore in setting up four new plants in West Bengal. Investment in new plants is aimed at increasing its production capacity to 100 tonnes per day in three years, from 60 tonnes per day right now.
Currently the company has eight plants in West Bengal and sells more than 30 products in biscuits, cookies and cakes.
According to G P Agarwal, chairman of Priya Food Products, "We hope to achieve a turnover of Rs 150 crore in three years from Rs 70 crore right now. We realized that we had to expand capacity to boost sales as demand across biscuits, cookies and cakes have been increasing."
Simultaneously, the company plans to take its distribution network to 2 lakh outlets in three years, up from 1 lakh outlets right now in West Bengal alone.
Direct employment in the company is also expected to touch 1,200 in three years, up from 800 right now.
"The demand for Priya products has especially been growing in West Bengal and we expect this state to contribute close to 50 per cent to our overall turnover. The other states include Orissa, North-East and Chhattisgarh," Agarwal added.
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Agarwal, who also owns G P Foods, the Rs 12 crore company manufacturing potato chips under the brand name 'Pogo', intends to introduce more flavours in chips as well as brand extensions.
"We will experiment with potatoes and flavours in order to innovate. We have five flavours right now. The intention is to make Pogo a Rs 30 crore brand in three years," Agarwal added.
For Pogo potato chips, the company has entered into contract farming with farmers in Bankura in Hooghly.
The company has one cold storage unit in the vicinity where it stores 50,000 bags of potatoes per year and uses them according to demand.
The company also manufactures chips for other companies in West Bengal who then package and sell them under their brand names.
On the other hand, Priya Food Products exports its biscuits, cookies and cakes to USA and Australia currently, and plans to expand that to Bangladesh, Nepal, Sri Lanka and Burma soon.
Exports currently contribute close to Rs 12 crore to Priya's Rs 70 crore turnover.
Priya is also embarking on a new marketing strategy covering 1 lakh outlets in Kolkata, with the objective of increasing brand awareness and reach.
Priya has hired Theme Ventures, a brand management company, for Priya visual merchandising.
The brand management firm from Delhi will introduce specially decorated standees for all Priya products that will be placed outside the 1 lakh outlets.
Theme Ventures will also introduce danglers, shop facia, hanging flex, continuous strips, posters, product hangers and will also create special windows for product display.
"In the present scenario where every company is cutting ad budgets, this cost-effective marketing and merchandising strategy should help Priya increase its sales volume. With specially decorates stands and windows for Priya products in outlets, consumers will be able to spot Priya products easily inside the shops," explained Agarwal.