Cornitos bets big on nachos, plans to double revenue in two years
New Delhi: GreenDot Health Foods Ltd, which owns premium snack brand Cornitos, is planning to double its revenue to Rs100 crore in the next two years, riding on the popularity of its flagship product Nacho Crisps (tortilla).
To achieve that, the company is eyeing smaller towns and cities for growth and further expansion. “The next phase of growth will come from tier II and tier III cities across the country. Big demand is coming from these areas,” said Vikram Agarwal, founder and director at GreenDot Health Foods Ltd, adding that these areas will account for 50% of the company’s overall revenue by the end of 2017 from the current 20%.
The company clocked Rs40 crore in revenue in 2015-16 and is hoping to close 2016-17 at Rs50 crore. Apart from Nacho Crisps, GreenDot Health Foods sells premium roasted nuts and recently entered the ready-to-eat segment with the launch of taco shells and refried beans. Both categories contribute 5% to the overall revenue, while Nacho Crisps remain the money spinner for the company.
“We are seeing a good growth in nachos but ready-to-eat segment remains a challenge. Mexican cuisine is not that famous in India. We are constantly organizing demonstrations across the country to popularise the cuisine and the products,” said Agarwal.
Currently, GreenDot Health Foods sells nachos in 10 flavours and is planning to add two more in 2017, through 30,000 outlets.
Going forward, the company is planning to add 10,000 new retailers to its distribution network and has also started offering a smaller 30 gram pack of nachos for Rs20 in small towns.
“We are selling smaller packs instead of the regular Rs35 (per 60 grams) ones in tier III towns which are being well received by the consumers,” said Agarwal.
GreenDot also sells products through e-tailers like Grofers, Amazon and BigBasket, and exports nachos to 12 countries including China, the US and Singapore, which contribute 20% to the company’s revenue.
Established in 2009, GreenDot Health Foods was set up in Faridabad as a start-up to “introduce Indians to a new Mexican snack and change the snacking habits across the country”.
Between 2004 and 2013, the Indian snacks industry expanded nearly six times to Rs47,000 crore in 2013 from Rs8,000 crore in 2004, according to market research firm Nielsen India. “Increasing disposable incomes, a need for convenience from fast-paced lifestyles and a cultural tradition of snacking between meals have fuelled explosive growth in this sector,” said a 2014 report by Nielsen.