Most of us who’ve grown up – or have a distinct memory of – the 90s, would have eaten the then popular Modern Bread (yes, the same brand that had a separate “sweet bread” and “fruity bread”). Unfortunately, the bread was taken away from the Delhi market, paving the way for brands such as Harvest Gold and Britannia. But we’ve got some great news for the Capital; Modern Food is planning a comeback within the nest one year!
Are we serious? Yes!
In a statement about their comeback, a top company executive said that Modern Food Enterprises would re-enter the market either on its own or through a possible acquisition.
“We are not present in Delhi, Punjab, Haryana. In the next 12 months, we should be entering (these markets). The opportunity can exist in an acquisition, a joint venture or we may decide to do it ourselves,” firm’s Chief Executive Officer Aseem Soni was quoted by PTI as saying.
“Delhi is one of the largest markets and we are not there. Once upon a time Modern used to be the number one brand in Delhi. We are looking at the central and northern parts of India where we are not present the way we should be,” he added.
According to a PTI report: Global private equity player Everstone acquired Modern Food from FMCG major Hindustan Unilever in 2015, and had exited several markets, including Delhi.
Image: Business Standard
What can we expect?
Speaking on the product portfolio that will be offered to the Delhi-based consumer, Soni told PTI, “Cakes and rusks are definitely the category we will enter. I don’t think we want to play in the biscuit and cookies segment as of now.
“Modern, we feel, somewhere has the right to play in the bakery category. Longer shelf-life products like cakes, muffins, cream-filled things, for that we are setting up a new vertical within the organisation. By the end of this year, we will have a very exciting portfolio,” he added.
Over the last fiscal year, Modern reported a turnover of INR 270 crore, of which non-bread folio clocks in about 7% – 7.5% of the total turnover and is currently available only in the Southern market. The company if further targeting a 25% growth in the current financial year and a revenue of IVR 1,000 crore by 2021.
Feature Image: Educational Tours | Crazy Holidays
Source: India Retailing