Export-oriented FMCG firm ADF Foods is eyeing Rs 500 crore revenue in the next five years and expects 40% of the sales to come from the Indian market, a top company official said.
"Exports contribute to around 95% of our revenues. But with India emerging as a leading food producer, we want to focus on the domestic market. We are eyeing 40% of revenues coming from the Indian market and the rest 60% from the international market in the next five years," ADF Foods Managing Director Bimal Thakkar told PTI on the sidelines of a Consumer Conference organised by Centrum Capital.
The Mumbai-based food processing company recently re-entered the domestic market with a range of ready-to-eat, ready-to-cook foods and pickles under the brand name Soul.
"We will introduce more products under the brand in the next few years to cater to the Indian cuisine. Apart from this, we also want to introduce international cuisine in ready-to-eat formats under the Soul brand," he said.
The company has earmarked a capex of around Rs 45 crore over the next three years for expanding its presence in India.
"We will be spending around Rs 25 crore on marketing and brand building and increasing our distribution network. We want to be among the top three leaders in 3-4 years. We are also planning to set up one manufacturing facility in the country and eyeing a revenue of Rs 500 crore in the next five years," Thakkar said.
The BSE-listed firm already has two factories, one each in Maharashtra and Gujarat, manufacturing products like pickles, pastes, chutneys, ready-to-eat curries, frozen parathas, frozen snacks and frozen vegetables, among others.
ADF Foods is also developing a contract-farming model, he said, adding, "We have started it in Gujarat for producing mangoes and bhendi (lady's finger). We see a great demand for such kind of produce mostly in the international market. Since the concept is also becoming popular in India, we plan to develop it further here."
Presently, the company has a presence in major countries of North America, Europe, Australia, the Middle East, Africa and Asia and has a strong network of over 175 distributors.
"We will be adding new products and entering new geographies as a part of our international expansion plans. We are also on the lookout for more acquisitions in key markets such as the USA and Australia," Thakkar said.
The company recently acquired Elena's Food Specialties, a US-based company making organic Mexican foods and distributing them across the mainstream market in the USA.
