Modern Foods to foray into new categories, newer markets

Modern Foods Ltd, acquired by Singapore-based Everstone Group last year, is aiming to "quadruple its revenue by 2021" by foraying into new categories and newer markets, a top official said here today.

After relaunching the brand with new logo and marketing exercise, Modern Foods' chief executive officer and Board Member, Aseem Soni said the company was looking at revenues of Rs 1,000 crore by 2021.

"We are looking at a 25 per cent increase in revenue by FY17-18. We would like to quadruple it (the revenue by 2021). That is the target we have set ourselves", he told reporters here.
 

For the financial year 2016-17, the company had registered revenue of Rs 270 crore, he said.

On the diversification plan, Everstone Capital Asia, managing director Rajev Shukla said, "we would venture into new categories and newer markets either by ourselves or through collaborations".

"We are looking at entering the packaged foods market. You will see the brand extend into new categories", he said in response to a query declining to elaborate.

The company which is a strong player in the Southern and Eastern markets would look at strengthening presence in the North and West.

Asked about the manufacturing facilities, Soni said the company had factories in Tamil Nadu, Kerala, Telangana, Karnataka, Mumbai and Kolkata.

Each factory can produce about 60,000 to 1.50 lakh bread loaves per day, he said.

"We are looking at 60-65 per cent revenue from bread (business) and remaining from new categories", he said.

On the expansion plans, the company was looking to have over one lakh outlets from the current 80,000, he said.

Later, talking to PTI about the reason for the rebranding exercise, Shukla said it was a combination of many things.

"The brand Modern has not evolved over the last 15-20 years. It has to be refreshed. If you are not relevant and contemporary then you are not a preferred brand. Though we are establshed, we still have many things to do. There are new markets we have to go to," he said.

"We are quite strong in the South and East, not so much in the North and West where we operate through franchises. These are markets where we would look to strengthen our presence", he said.