It is much difficult to keep in check entrepreneurs bubbling with energy and enthusiasm even if they are pushing 60. Sadananda Maiya, considered one of the key figures in building India’s ready-to-eat segment into a strong and fast growing Rs 800 crore market, is at it again. The 63-year-old businessman, son of Parampalli Yajnanarayana Maiya, who founded the iconic MTR Restaurants chain in 1924, parted ways with the family’s restaurant business to launch the MTR Foods in 1994, which was later sold to Norway-based Orkla Group for Rs 300 crore during 2007.
Five years after the no-compete clause came to an end Maiya is understood to be in active parleys with atleast two private equity funds to expand his fledgling business — Maiya’s Beverages and Foods and which sells a range of ready-to-eat foods under the brand ‘Maiyas’. Maiya is literally on a overdrive and has been aggressively populating the market across South India at a rapid pace and is understood that he may be raising around $20 million to start with which may happen within the end of next quarter.
Maiya has kickstarted his comeback foray with an aggressive Rs 60 crore investment to put up an expansive fully-automated factory on a 20-acre land in Bangalore. A part of that Rs 60 crore has been through a short-term debt from a bank. Sadananda Maiya during the expansion of MTR Foods had raised private equity from J P Morgan and Singapore-based Aquarius during 2000.
“We may require resources as we are expanding the business at a fast pace,” Maiya told Business Standard, declining to spell out the sum he may be raising and also offered not to comment on the private equity option. According to the business plan, Sadananda Maiya will first roll out a range of spices and then instant mixes to the market followed by ready-to-eat foods and frozen foods subsequently. Maiya’s Beverages and Foods has already rolled out 80 SKUs (stock keeping units) and will touch the 300-SKU mark within a year and has been carefully handpicking machinery and customising them to suit the Indian product range.
MTR Foods, the company which he had helped become a market leader in the country, has a significant marketshare in this segment with close to 50 per cent while other players like ITC Foods, GRB Group and Haldiram’s are working on shoring up their shares in a segment which is growing at 15 per cent per annum.
One of the crucial differences Sadananda Maiya is planning to bring to the market is the freshness of the products - especially the spices. Of the 20 acres of land Maiya’s have in Bangalore for the production unit, nearly half will be used for captive cultivation of vegetables and essential ingredients for its range of products. “Sometimes in an off-season, the ingredients are not up to the mark, and so, we are taking this route. In addition, to ensure constant supply of ingredients, we have gone in for captive farming as well,” he added.
Maiya’s Beverages and Foods, in addition to the ready mix, spices and ready-to-eat segments, is keen on betting big on the frozen foods segment, which according to Sadananda Maiya, is expected to grow exponentially in the years ahead.
“When we started MTR Foods earlier, the cold chain logistics network in the country was poor and it is now an established business. That network will further strengthen as modern retail is taking off,” said Maiya. In addition to such networks in India, there is a major demand in global locations for our products, where the cold chain network is sturdy.
“We are already getting inquiries from Australia, Japan, the US as well as from London,” he added.
According to him, the market is now much more mature than the early years. But there are not enough “focussed and specialised players” in this segment, and therefore, it opens up opportunities for new entrants.
