Heritage Foods eyes Rs 1,000 cr turnover by FY19

Hyderabad-based Heritage Foods expects to cross Rs 1,000 crore turnover by FY19 and plans to invest Rs 20 crore every year to expand stores across cities such as Bengaluru, Chennai and Hyderabad.
The company has appointed management consultancy firm KPMG to look for strategic partners.
It is looking at investing Rs 20 crore every year to expand its stores across cities such as Bengaluru, Chennai and Hyderabad.
"We would like to add 75,000-100,000 sq ft of trading space per year for the next five years. We expect to cross Rs 1,000 crore turnover by FY19," Heritage Foods COO, Retail and Bakery Dharmendar Matai said in a statement here.

The company is also exploring multiple options to turn retail operations profitable in the next two years with the help of a new set of investors and strategic partners, Matai said after being felicitated as the top 100 influential Leaders in the retail space at the Asia Retail Congress 2016.
In 2015-16, Heritage Fresh is expected to close with a turnover of Rs 600 crore compared with 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 ebitda positive from the current financial year. We have robust supply chain and distribution network in three cities where we operate," he said.

After having succeeded in establishing itself with bakery business in own retail stores and B2B space, including supplies to KFC, Taj Hotels, Novotel, Mariott, Walmart, Pizza Hut, etc, 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 Rs 100 crore in the next three years," he added.