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“Plans afoot to go public at valuation of Rs 3,500 cr”
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Monday, 17 March, 2025, 08 : 00 AM [IST]
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 Indian food processing sector holds immense potential and is on a growth trajectory, addressing infrastructural, regulatory, and financial challenges, which are crucial to sustain and accelerate this progress, said Akshay Bector, chairman and managing director, Cremica Foods, in an email interview with Nandita Vijayasimha. Excerpts:
How has your brand fared so far in the market?
Cremica Food Industries has established itself as a significant player in the Indian food processing sector, particularly, in the premium quality liquid condiments space. The company has experienced substantial growth, with revenues growing at a healthy 15% plus this year. This growth trajectory underscores its expanding market presence and its successful penetration into both retail and food service segments.
Which are your fastest growing products? Specifically how are the Opera Crisps and the condiments and sauces faring?
Our diverse product portfolio includes tomato ketchup, mayonnaise, sandwich spreads, Indian chutneys, specialty sauces, hot sauces, salad dressings, syrups, jams, and Opera Crisps. The company is recognised as a brand leader in the mayonnaise and tomato ketchup segments.
Additionally, the brand has ventured into the snacks category with Opera Crisps, which are India's first cottage-style potato crisps. While specific growth metrics for individual products aren't publicly disclosed, the company's continuous innovation and expansion into new categories suggest a positive market reception for these products.
What are the expansions envisaged by the company?
Our brand is actively pursuing growth through both organic and inorganic means. The company plans to enter new categories such as snacks, pickles, and beverages. To support this expansion, it is considering setting up an additional facility near Delhi, which will include a liquid condiment capacity of 60,000 tons per annum and a frozen food capacity of 12,000 tons per annum. Furthermore, the company is contemplating an Initial Public Offering (IPO) in the next 12 months to partly fund the growth plans.
Provide details about the manufacturing plants.
The company operates multiple manufacturing units across India, strategically located to optimise production and distribution. The primary facilities are situated in the northern region of the country, including a state-of-the-art tomato processing plant in Una, Himachal Pradesh, which is part of the Cremica Food Park. This facility is equipped with advanced technology, including a multi-crop pulping line with bulk aseptic packaging and frozen storage capabilities. The company acquired a sauce manufacturing plant in the last year and has additional capacity to increase production of bottle products for retail and also the largest line for the manufacture of blister packs. Additionally the company is executing another project for the manufacture of liquid condiment and sauces for additional capacity of 18,000 tons per annum taking the additional capacity being set up or acquired in Una to 30,000 tons per annum. The companies existing plant in Punjab was revamped this year to add almost 35% to it existing output.
The company has expanded its infrastructure with the establishment of a Mega Food Park in Una, Himachal Pradesh. This facility includes advanced central processing units with a capacity of over 30 tonnes per hour and an aseptic pulping line. What are the updates from this facility?
The Cremica Food Park in Una, Himachal Pradesh, was inaugurated in February 2019. Developed under the Union Government's Mega Food Park Scheme, the park spans 55 acres and represents an investment of Rs 150 crore. It features advanced central processing units with a capacity of over 30 tonnes per hour and an aseptic pulping line with India's first flash steriliser. The facility is designed to process a significant volume of tomatoes and other fruits, providing a boost to the local economy and benefiting farmers in the region. The park provides ready infrastructure for our future growth.
Which are the fastest growing markets and which countries do you export?
While specific details about the company's fastest-growing markets and export destinations are not publicly available, it has a significant presence in both domestic and international markets. The company supplies its products to leading quick-service restaurant (QSR) chains in India and also exports to various countries, meeting global demand with its quality products.
The company is a leading high quality manufacturer of liquid condiments their products are highly acceptable in the Indian market and the company is growing rapidly as the Indian market is looking for high quality products. The company concentrates its market in India and has started exporting to USA, Canada, the UK, West Africa and South East Asia.
The segment of condiments, sauces and snacks has considerable competition. What are the strengths of the company that set it apart?
Our strengths in the condiments, sauces, and snacks segments include our commitment to quality, innovation, and strong relationships with leading QSR (quick service restaurant) chains. The company's ability to develop unique recipes and health-oriented ingredients has helped it stand out in a competitive market. Its state-of-the-art manufacturing facilities and focus on research and development further contribute to its competitive edge.
How easy is fund access to boost the company’s growth? How is the company looking at the Union Government’s Production Linked Incentive Scheme for food processing?
The company has been a boot-strapped operation with a balance sheet much smaller than most of its competitors and has been funding its growth largely with internal accruals. Its current infrastructure and planned investments will address requirements of the next year or two. The company plans additional investments in the next financial year to meet its growth requirements and plans are afoot to go public at an expected valuation of Rs 3,000 to 3,500 crore. We do not plan to take this Production Linked Incentive Scheme at the moment.
Specific to this Union Budget what have been the striking features for the food processing industry?
The Union Budget often includes measures to support the food processing industry, such as fiscal incentives, infrastructure development, and support for technology adoption. While specific details from the latest budget are not provided, such measures can create a conducive environment for companies like us to expand their operations.
Your company operates several manufacturing units across India, strategically located to optimise production and distribution. Their primary facilities are situated in the northern region of the country:
The company operates several manufacturing units across India, strategically located to optimise production and distribution. Their primary facilities are situated in the northern region of the country, including: Cfil Noida, Uttar Pradesh. The Cfil Phillaur, Punjab, is located in Jalandhar district - ketchup, mayonaisse and retort plants. Cremica Food Park in Una, Himachal Pradesh, is equipped with state-of-the-art pulping lines and advanced cold storage facilities. It also houses the new jam and sauce production lines of Cremica Foods, along with Una Miracle Foods, our subsidiary, enhancing our capacity to deliver high-quality products.
How do you view the current scene for food processing in India?
India's food processing sector is a significant contributor to the nation's economy, accounting for about 10% of its agricultural output. The industry has witnessed robust growth, with an average annual rate of 7.3% from 2015 to 2022. Despite this progress, the sector processes less than 10% of total food production, indicating substantial potential for expansion.
What are the visible trends?
Several key trends are shaping India's food processing industry. These include the rising demand for processed foods. Here urbanisation and changing consumer preferences have led to increased consumption of ready-to-eat and convenience foods. In health and wellness focus,: There's a growing demand for nutritious, organic, and health-oriented food products. With technological advancements, we are seeing the adoption of modern processing technologies to enhance efficiency and product quality. In the area of investment and M&A (merger and acquisition) activities, the sector is witnessing increased mergers and acquisitions, with companies aiming for strategic consolidation and market expansion.
What are the challenges seen in this sector?
The Indian food processing industry faces several challenges. It faces infrastructure deficiencies with inadequate cold storage and supply chain facilities leading to significant post-harvest losses. There are regulatory hurdles. Complex regulatory frameworks can impede swift business operations. Further, there are quality and standardisation issues. Ensuring consistent product quality and adhering to international standards remain challenges. Financial constraints is another issue. High capital investment requirements pose challenges for small and medium enterprises.
Going forward do you see growth consolidation of the food and beverage processing industry with disinvestment or mergers and acquisitions?
The Indian food and beverage processing industry is experiencing a wave of consolidation through mergers and acquisitions (M&A). Factors such as economic growth, regulatory reforms, and market opportunities are driving this trend. Companies are leveraging M&A for strategic consolidation, market expansion, and to gain access to new technologies. The government's supportive policies and initiatives have further facilitated smoother transactions in this space.
While the Indian food processing sector holds immense potential and is on a growth trajectory, addressing infrastructural, regulatory, and financial challenges will be crucial to sustain and accelerate this progress.
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