MTR Foods to invest Rs 150 cr in 2 yrs

Instant food manufacturer MTR Foods has lined up investment of about Rs 150 crore over the next two-year period, as part of its target of generating Rs 1,000 crore revenue by 2015, a top company official said on Thursday.

“We continue to make investments. We will be making investments of Rs 100-150 crore in the next two years. We are a profitable company. The funds will be raised through internal accruals,” MTR Foods, chief executive officer, Sanjay Sharma told reporters here.

The company reported revenue of Rs 350 crore during the financial year 2011-12 and aims to garner Rs 450 crore in this financial year, he said.

 

Unveiling the new ‘MTR Sambar Masala Podi’, ‘Rasam Podi’ and ‘Kulambu Podi’ exclusively for the Tamil Nadu market, he said the company hoped to achieve a “double digit share” in the masala market in Tamil Nadu valued at Rs 712 crore.

Apart from MTR Foods, ‘Aachi Masala’ and ‘Sakthi Masala' are the competitors in Tamil Nadu. Noting that the southern region (comprising Andhra Pradesh, Tamil Nadu and Karnataka) contribute 70 per cent of sales for the firm, he said the investments would be utilised to improve the basic infrastructure at their integrated manufacturing facility in Bangalore.

At presently, the company is present in spices and masalas, ready mixes and in snacks. “We expect these categories to contribute 85 per cent towards the group total revenues of reaching Rs 1,000 crore by 2015. These three categories contribute 70 per cent,” he later said.

The Bangalore-based company had recently acquired Pune-based Rasoi Magic to enter into the ‘meal mixes’ market.

On exports, which contribute seven per cent to the group’s total revenues, Sharma said 50 per cent of exports comes from the US followed by Canada, Japan and West Asia.