Poultry and frozen vegetarian products maker Godrej Tyson Foods plans to expand distribution network in smaller towns and cities, aiming to cover over 100 cities and cornering 10 per cent market share over the next three years.
The company is increasing their presence in the tier II and tier III cities and presently 46-48 per cent traction comes from non-metros It was around 25 per cent three years ago, said Arabind Das, COO, Godrej Tyson Foods Ltd.
"Sales in tier II and III places are growing over 35 per cent. Our focus in next two to three years would be at these places because life style is changing there," he said.
The company on Tuesday launched its new ready-to-eat food products Mumbai Vada and New chicken nuggets under the Yummiez brand. Godrej Tyson which is a joint venture between Godrej Agrovet Ltd. And US-based Tysoon Foods Inc, markets markets fresh chilled chicken under Real Good Chicken (RGC) brand and ready-to-eat foods under Yummiez.
Saying that the company's strength lies in making popular street foods across the country more affordable and healthy, Das said, "The launch of street food packets at an affordable price will elp us penetrate the market beyond metros and mini-metros." According to the company, a 300 gm packet (6 pcs) of Mumbai vada pav costs Rs 75, which as at a competitive price level with the vada pav that is sold in street."
Das said that with food inflation going down, protein consumption is increasing.
Also with a changing lifestyle where people love to eat out there is a huge scope for the frozen food market. He added that the recent launch of chicken nuggets wich is priced at RS 160 for 500 g is priced Rs 90 lower than its competitor. According to industry estimates, the $22.23 billion processed food market is growing at a rate of 14 percent every year.
According to Das though the government has been able to build a network of cold storage across the country, a major impediment for the frozen food industry remains in the last mile connection which freezer at the distributor's end. "We plan to invest Rs 8-10 crore in the last mile facility in the next three years," said Das. He added that the capacity of the plants across the country will also be expanded to killing line capacity of 10,000 birds per year.