MTR to revamp business for faster revenue growth, aims to grow sales by 12%

Picture courtesy:
After going through a slow phase of growth in the past three years after demonetisation and implementation of GST, food products company MTR Foods is revamping its business and processes as it looks at a sales growth of more than 12 per cent 
this year. 

The Bengaluru-based company, which is presently owned by Norwegian conglomerate Orkla, is hopeful of achieving a turnover of around Rs 9 billion in 2018 as compared to Rs 8 billion it reported last year. 

Apart from introducing a higher level of digitisation in operations, costs optimisation measures and strengthening of sales and distribution network, MTR Foods is also planning to launch new products across the spices and ready to eat ranges in the coming year.

“As we are closing to reach Rs 10 billion revenue mark and aspire to increase it further, we need to do a lot of reengineering to cash in the future growth,” said Sanjay Sharma, chief executive officer of MTR Foods. “As part of this reorganisation, we have cut a lot of flab to be cost efficient. So, we are in the middle of this strategic plan, which will help us to sharpen our focus areas.”

He also said that, as far adoption of technology is concerned, the company was behind the curve, and is currently working on various areas to push digitisation. “We have put up a huge digitisation programme. We are digitising our front-end sales and operations,” he said. The company has also digitised its warehouse operations recently.

MTR Foods, which was acquired by Orkla for $100 million in 2007 from its erstwhile promoter Sadananda Maiya, has a strong presence in southern states like Karnataka, Andhra Pradesh and Tamil Nadu, with its spices and ready to eat product ranges. In the spices category, the company has a range of products including sambhar powder, curry powder, rasam powder, garam masala among others. 

In the ready to eat and breakfast category, its products such as sambar rice, vegetable pulao, palak paneer, poha, upma and oats are quite popular in the southern markets. Spices currently account for around 38 per cent of the company’s total revenues while ready mix category contributes about 30 per cent. Among the rest, vermicelli and ready to eat products account for 15 per cent and 7 per cent respectively. 

MTR Foods has created a Rs 500 million seed fund to invest in early stage start-ups, and has already invested in an early stage startup FirmRoots which owns children-packaged food brand Timios.

“We are evaluating five-six proposals in the food products space as of now. But, something concrete is yet to emerge,” Sharma added.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel