RP Sanjiv Goenka group wants snacks business to bring Rs1,000 crore revenue
Kolkata: The RP-Sanjiv Goenka group is looking to scale up its fledgling consumables business to generate Rs1,000 crore in revenue within the next 18 months—three times the current revenue. The group sells affordable snacks under two brands Too Yumm! and E-Vita, which are generating about Rs30 crore in sales per month.
The group is selling its snacks through 150,000 outlets, said Sanjiv Goenka, group chairman. It will continue to invest to build these brands and to expand product offerings. So, in the near-term, the business will continue to make losses, but according to Goenka’s estimates, it should not exceed Rs100 crore a year.
In July last year, Goenka bought a 70% stake in Gujarat-based Apricot Foods Pvt. Ltd for Rs440 crore, bringing under his group the E-Vita brand.
At the time of the acquisition, Goenka had said that the company’s annual revenue was around Rs200 crore. It sold snacks priced at Rs5 a packet.
The consumable business was started from the group’s flagship firm CESC Ltd, a power utility, currently undergoing restructuring. It is to be carved up into separate firms, and eventually the consumables business will be part of CESC Ventures Ltd.
The group is looking to set up factories to add to the Apricot Foods’ production facilities in Rajkot and Hyderabad. One such could come up in Telangana, according to Goenka.
It also uses several third-party production facilities on contract.