Innovative Foods is all set to open a new and their second plant in Chittoor Food Park by the end of this year. The organisation is based in Cochin and markets frozen food like fries and chicken nuggets under the name Sumeru. The new plant will have the capacity of 300 tons according to a senior company executive.
“We will be opening our second plant at mega foodpark in Chittoor by December that will manufacture all range of our frozen products. This is to drive our growth and double our turnover this fiscal,” Saurabh Kumar, vice-president, sales and marketing, Innovative Foods told Economic Times.
The company is funded by Peepul Capital and has the target of doubling their revenue by making Rs.100 crore this fiscal year as compared to Rs.50 crore that they made last year. They had entered tier-II cities and brought new partners for their business to business (B2B) segment.
“We are feeling the pinch as we are taking a hit on our margins given we haven’t increased the prices with an increase in taxes. We believe this is a short-term setback and will be beneficial for the industry as a whole,” added Kumar on the difficulties that the Goods and Services Tax has imposed on them. The taxes have gone up 6-7% giving the industry a setback.
The prediction made by TechSci Research however sounds like a positive indicator for the industry as it is expected to grow at the CAGR of 15% between 2016 and 2021. This, the Research Institute predicts due to the growing number of retail chains, more refrigeration found in small shops and tremendous growth of fast food chains. In fact, the industry size is being estimated at about Rs.800 crore.