In a bid to make further inroads in the domestic ready-to-eat (RTE) frozen and processed food market, Nadiad-based ADF Foods Limited is set to expand the manufacturing capacity at its Gujarat plant.
At an investment of over Rs 20 crore, the company, which majorly exports 'SOUL' brand of RTE, frozen food and pickles, among others, is setting up a greenfield plant adjacent to its existing one in Nadiad.
"It has been sometime since we were focusing majorly on exports. However, the RTE, frozen as well as processed food market in India is looking up and we intend to capture considerable market share in near future. Hence, we are expanding the manufacturing capacity at our Nadiad facility by adding a greenfield plant," said Bimal Thakkar, managing director, ADF Foods Limited, which manufactures around 400 food and processed food products including RTE, frozen, individually quick frozen (IQF) food, pickles, chutneys and sauces.
Currently, of the over Rs 130 crore turnover, the domestic market is less than 10 per cent while the rest is exports. Post expansion, the company is expecting to increase the share to over 40 per cent in next couple of years, according to Thakkar.
The company is investing around Rs 20 crore for the green field plant that will be spread over an area of 40,000 sq ft. The plant will mainly manufacture frozen foods, apart from other products. The existing plant is spread across an area of 200,000 sq ft.
"Apart from expanding manufacturing capacity, we are also launching India specific products to enhance our domestic market share. For instance, a new category called wet masala is being launched under the SOUL brand, apart from sauces, pickles and chutneys," Thakkar added.
ADF Foods is also spending around Rs 10 crore for media and marketing initiatives including a television commercial campaign for its products. In all, in the next three years, the company intends to invest around Rs 40 crore.
Over 200 distributors are currently spread across various markets such as Maharashtra, Gujarat, Madhya Pradesh, Delhi, Kolkata and Bangalore. According to Thakkar, the company is adding more number of distributors day-by-day in newer states.
Meanwhile, from the current more than Rs 130 crore turnover, ADF Foods is eyeing a consolidated turnover of Rs 240 crore for 2013-14, Thakkar stated.