Homegrown breakfast cereal brand Bagrry's is looking to expand its manufacturing capacity by setting up a plant in the South with an investment of Rs 100 crore.
Bagrry's India Ltd Director Aditya Bagri said, "The South, including Bengaluru, Chennai, Hyderabad as well as Mumbai in the West are booming markets for us. We are planning a facility by the next fiscal."
The breakfast cereal business is a 20-year old vertical under the 50-year old group, which has been a bulk supplier of oats, wheat bran and other cereal products to leading brands, including Nestle, KFC, ITC and Britannia, among others.
Further, the Rs 120 crore company is set to enter a new dimension in the industry by entering the quick service restaurant (QSR) space, for which it has earmarked an investment of Rs 3-4 crore this fiscal. It has started piloting its kiosks in Delhi and plans to enter Bengaluru soon.
"The 'eating out' culture in Bengaluru is encouraging and so is the 'healthy eating' culture. We are eager to introduce our healthy snacking outlets in the city," said Bagri.
Healthy growth
On expanding the brand's footprint, he said, "As of now, we are looking to achieve brand visibility. As the second most popular brand in the category, we claim a share of about 18% in the country's Rs 1,000-1,200 crore (MRP value) breakfast cereals market." The brand is available at 70,000 points-of-sale in the country, with a further presence in Nepal, Bhutan and Maldives, among others.
Apart from B2C sales, the company is aggressive about its B2C sales, which contribute equally to revenues. Some of its clients are Jet Airways, Taj Hotels and IRCTC. "We plan to do specialised institutional sales going forward, as, with awareness of consumer preferences, the segment is picking up," said Bagri.
The company looks to close FY18 with Rs 120 crore in revenues and expects a growth of 40% in the current financial year.
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