Garden Namkeens, the snacks division of fast-moving consumer goods conglomerate CavinKare, is looking at setting up a manufacturing facility in north India. Garden Namkeens, established in 1982, was acquired by Cavinkare in August 2009.
Announcing the launch of of Garden Namkeens' eight-acre facility at Bhiwandi in Maharashtra, TD Mohan, joint managing director, CavinKare, said that the company had invested Rs 80 crore in the Maharashtra facility, a majority of which had into automation.
The investment was for technology upgradation and to increase the capacity to 1,800 tonne as demand increases. The machinery used is imported from the US and Australia. The factory is designed to be environment-friendly using green sources of energy like agricultural waste.
“Since the last 22 years, the brand has been catering to the Maharashtra market to a largest extend. Now, we are planning to take it to south and west in Phase-I, followed by New Delhi before going pan-India by the end of the current financial year. Post which, we will look at a green-field facility in north,” Mohan said.
At present, the product is available in 1.8 million outlets. Around 550,000 outlets will be added by the end of this year, he said, adding that the company was planning to set up a 2,000-tonne facility, which would attract an investment of around Rs 90 crore.
Currently, the domestic market for branded namkeens is estimated to be around Rs 3,000 crore. This includes both national and regional brands. Garden Namkeens clocked revenues of Rs 65 crore last year and is planning to increase it to Rs 250 crore in the next two years, he said.