Godrej Tyson to expand network in smaller cities, towns

Poultry and frozen vegetarian products maker Godrej Tyson Foods plans to expand distribution network in smaller towns and cities, aiming to cover over 100 cities and cornering 10 per cent market share over the next three year.
Godrej Tyson, a 49:51 JV between Godrej Agrovet Ltd and US based Tyson Foods Inc, would focus on non-metro areas and is investing in creating the last mile infrastructure such as chillers and freezers at those places.
"We are currently present at 68 cities and this financial year we would be closing up with 72 cities. In the next two to three years we would be reaching about 100 cities in our sales network," Godrej Tyson Foods COO Arabind Das told PTI.

The company, which markets fresh chilled chicken under Real Good Chicken (RGC) brand and ready-to-eat foods under Yummiez follows, October to September financial year.
It would invest around Rs 10 crore in creating last mile infrastructure in next 2-3 years by providing chillers and freezers at various places.
"The biggest stumbling block for the industry is last mile connection which is freezer at the distributors end. To remove it we are investing on the front end from last two to three years," he said, adding that the company is focusing on three aspects "safe quality, affordability and availability".

Godrej Tyson's revenue from tier II places is increasing and presently 46-48 per cent traction comes from non-metros It was around 25 per cent three years ago, Das added.

"Sales in tier II and III places are growing over 35 per cent. Our focus in next two to three years would be at these places because life style is changing there," he said.
Apart from chicken, the Godrej Tyson is also getting good response for its frozen vegetarian products as Harayali bytes, Allo tikki, Vada Pav etc. Out of 52 products, its retail SKUs( stock keeping unit) has 16 vegetarian products, Das said.
Presently, India has USD 300 million ready to eat and ready to cook frozen market which is dominated mainly by companies including Venky's, Sumeru, Al Kabeer, McCain etc.

"We are targeting to have at least 10 per cent of that in the next two to three years," he said, adding that company would keep on adding 4-5 products every year.
However, Das declined to share the current revenue base of the company.