Dr Oetker buys Noida-based start-up Kuppies to grow ready-to-eat business

The acquirer aims to generate Rs 300 cr in annual sales from RTE segment in next 5-7 years; Currently, it rakes in Rs 400 crore a year from food ingredients and ready-to-cook mixes

German packaged food major Dr Oetker has acquired Noida-based start-up Kuppies to expand its presence in the ready-to-eat (RTE) segment in India. The Indian units of the multinational, which gets most of its revenue from food ingredients like mayonnaise, will be using Kuppies' manufacturing unit, its innovation centre and the brand to grow its presence in RTE cakes and desserts in the local market.

According to Oliver Mirza, managing director and CEO, Dr Oetker India, the firm has set a target of generating Rs 300 crore in annual sales from the new segment within the next 5-7 years. The firm currenty rakes in some Rs 400 crore a year from its food ingredients and ready-to-cook mixes.

Incidentally, the firm gets about 75 per cent of its sales from 'Funfoods', a brand it had locally acquired in 2008.

With the acquisition, Dr Oetker will be one of the latest MNCs to enter the packaged cakes market in India in recent times. Over the past three years, a host of FMCG majors like Mondelez, ITC, General Mills, among others, have entered the Rs 2,500 crore branded RTE cake market in India.