MTR's makeover

The packaged foods firm is stepping up presence in customised instant mixes.

It was one of the early movers to bite into the instant foods segment in the late seventies. Four decades later, the company, which started as Mavalli Tiffin Room (MTR) – a neighbourhood eatery in Bangalore – has become a leading packaged foods company with over 300 products offering just about every meal solution.

The real turning point came three years ago when MTR was acquired by Norway’s Orkla group, which made its intent clear from day one – establish MTR it as a pan-India brand.

The first goal has since been achieved and MTR is now working on its next target: it wants to make instant mixes the face of the brand and even launch instant mixes for Indian desserts.

 

Sanjay Sharma, CEO of MTR Foods, says, “Instant mixes have given us volume growth in North and West India. We have already ramped up our production and will now grow our presence in department stores and neighbourhood grocery shops.”

MTR is also set to bring back Badam Halwa mixes that can be used in different forms by users. “We had a product called Badam Feast that never took off due to lack of awareness. But seeing the sales of Gulab Jamun mixes over the last three months, we realised that the Indian sweet instant mixes segment remains relatively unexplored,” says Sharma.

With Orkla investing around Rs 100 crore, the company re-launched the MTR brand after redesigning its packaging. Alongside, it invested Rs 15 crore for capacity expansion of its spice plant from 5,000 tonnes to 14,000 tonnes.

Extensive consumer research and studies conducted by MTR revealed that while the average Indian buyer did not want readymade items, he looked for mixes that can be customised. “That’s one reason why ready-to-eat meals have never been successful in India.

While they are exported in large numbers, on a day to day basis, Indians prefer packaged foods that can be adapted to personal preferences,” says Sharma.

“We saw that there is a growing preference for North Indian dishes like paneer in Chennai, where it is treated as a special dish. So we have started stocking our supplies as per customer preferences and the feedback from store owners on what item was moving fast,” says Sharma.

MTR has also been testing various frozen food items like idlis, parathas and even poha that can be delivered to consumers in ready-to-eat format.

“The problem is that frozen foods need an ecosystem that would ensure it is kept fresh. This includes refrigerated delivery vehicles and proper storage facility at the stores.”

While Sharma refuses to give more details, he does say that frozen ready-to-eat meals may be launched next year.

For now, MTR is serious about growing its leadership in spices in Karnataka and Andhra Pradesh where it has a strong brand recall, Sharma reasons, “Spices contribute close to 35 per cent to our revenues followed by instant mixes. But spices are a fairly segmented market due to culinary preferences in each state. So, we will look to strengthen our hold in Karnataka and AP.”

The brand is also eyeing wet pastes and ready curry masala mixes.