Venky's set to ramp up processed foods business

After establishing itself as the largest player in the poultry business in Asia, the Pune-based Venkateshwara Hatcheries or Venky's is foraying into the processed foods business.

Uttara Foods and Feeds, a subsidiary of the Rs 1,300-crore VH group, introduced its branded atta nine months ago and then the Glucose Plus biscuits last month.

Venkatesh Rao, managing director, Uttara Foods and Feeds, said the idea is to cash in on the relationship the Venky's brand has with people, and provide them better quality and value for money.

"Glucose biscuits, like atta, are something consumed by people all across the country, whether an MD or an ordinary labourer, which is why we've introduced these products," he said.

The company has set up a 25-tonne plant at Ranjangaon near Pune for the biscuits range, which has been introduced in three flavours "" milk and honey, milk and wheat, and milk and malt. The biscuits, priced a rupee higher than the existing ones, are also supposed to provide an additional 100 calories per 100 grams and, hence, the name 'Glucose Plus'. The biscuits have been introduced in Maharashtra, and the company is looking at taking them to other states soon.

Next in line are elaichi-flavoured glucose biscuits as well as Venky's Nice biscuits, which are essentially sugar-sprinkled, coconut-flavoured biscuits. While these would be out in the market within 10 days, Rao has more up his sleeve.

The Rs 4,500-crore biscuit market in the country is expected to grow exponentially in the coming years. Per capita consumption is currently pegged at 2 kg, at an annual growth rate of 10 per cent, while that in the developed markets is at 16-17 kg.

"We are definitely looking at expanding the foods business, and have tied up with some companies in Italy and Greece to import pasta and olive oil," Rao said.

The company has also set up an office in the Middle East to market both its poultry and processed foods, and is also looking at exporting its products to the United States.

Meanwhile, the company's atta business, he said, is going in line with its plans with sales having already touched 35 tonne a day across cities such as Pune, Mumbai, Kolhapur and Hyderabad, among others.

"Our plan is to reach around 90 tonne in the next six months," Rao said, adding that "and things are on target so far."