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“We plan to invest Rs. 100 crore for Una food park”: Bector
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Monday, 24 November, 2014, 08 : 00 AM [IST]
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fiogf49gjkf0d  The product range of Cremica Food Industries Ltd comprises confectionery, tomato ketchup, sauces, bread spreads, mayonnaise, spreads, syrups, toppings, salad dressings, Indian snacks, etc. The company is one of the leading players in both the food retail and food service industries.
Last year, Cremica launched India’s first vegetarian mayonnaise and Opera kettle crisps, India’s first cottage-style potato crisps. And recently, it introduced sandwich mayo in a host of Indian flavours.
In an e-mail interaction with Harcha Bhaskar, Akshay Bector, Cremica’s chairman and managing director, spoke about the company’s expansion plans. Excerpts:
What are the various products/variants offered by Cremica?
We offer the taste that India loves. It is reflected in our extensive product range, which includes sandwich mayos, chutneys, sauces, salad dressings and dessert toppings.
We offer Opera kettle crisps in four variants, namely Salt and Pepper, Italian Herbs, Cheese Jalapeno and Piri Piri.
Tell us about Cremica’s mayonnaise variants, and the rate at which the business is growing? To which countries does the company export its products?
We were the first to launch vegetarian mayonnaise in India, and our latest range, with Indian flavours, has been very well received by the market.
It comprises the following:
- Veg Mayo;
- Original Sandwich Mayo;
- Tandoori Sandwich Mayo;
- Chipotle;
- Mint Sandwich Mayo;
- Tangy Pickle Sandwich Mayo;
- Cheese Sandwich Mayo, and
- Korma Sandwich Mayo
The retail side of the business has been growing at the rate of 40-45 per cent annually. Some of our major exports have been to Fiji and Hong Kong.
Where are the tomatoes for the ketchup procured from? What are the various standards maintained, and how is it different from our competitors?
The tomato paste content in Cremica is 34.5 per cent. According to the Indian specification for tomato ketchup, it should be prepared from sound and ripe tomatoes with more than 25 per cent by weight of soluble solids.
Cremica launched India’s first vegetarian mayonnaise, and cottage style potato crisps. What is the next product to be launched by the company?
Cremica has been at the forefront of the business across all categories of business.
The recent launch of Opera kettle chips has been highly successful, and is already available in premium outlets in most metropolitan cities in the country within the first year.
The product is likely to penetrate at a rapid pace, and addresses the needs of highly-differentiated customers.
Salad dressings were launched recently, and are creating a big stir in the market.
We would continue this process in the coming years.
What research and innovations are currently taking place in the company?
Cremica’s expansion programme is in the pipeline. We would be setting up a factory in Mumbai and a Rs 100-crore integrated food park in Una, Himachal Pradesh.
We are in talks with various companies for joint ventures, and hope to get the benefit of our distribution system and enter new categories in the future.
What challenges is the company facing with regard to the availability of quality raw material, regulations, certification, technology, etc?
We hope that the current government would look at energising the large scale set-up of food processing units.
An area that needs focus is the availability of perishable foods, which is critical to avoid food inflation and help sustain growth.
What is the size of the condiment industry in India? Brief us on the trends prevalent in the condiment industry in India?
The condiment market in India is estimated to be worth about Rs 1,000 crore today.
Goldman Sachs invested in our business in 2006. The sales of the business was worth Rs 20 crore at that time, and since then, we have grown twelvefold.
We are finding that the changing lifestyles and rising incomes are leading to a big increase in the consumption of condiments.
The growth of the food service sector is helping in familiarising customers with new types of products, and helping innovative companies like us to introduce new products in the market.
In keeping with this, only 30 per cent of our offerings are going to large food service companies.
Cremica has become a widely-distributed brand, and is now a serious player in the retail market.?
How does the joint venture between McDonald’s and Cremica work? What are the various products included in the business, and which outlets of McDonald’s are involved?
Cremica does not have a joint venture with McDonald’s.
However, we have been approved suppliers to the brand since it was launched in India.
Our major supplies to the brand include a variety of condiments.
What are the new joint-ventures and expansion plans in the pipeline for the company?
We run one of the largest condiment lines in India, with a capacity of approximately 10 tonnes an hour.
Another plant with a similar capacity is going to be set up in Mumbai this year at a cost of approximately Rs 50 crore.
We are also in the process of backward integration in tomato paste processing and other industrial infrastructure.
Given the reach of the business in the market, we expect rapid expansion into the other categories of business and joint ventures in unrepresented areas.
What is the current turnover of the company for the business-to-business (B2B) and business-to-consumer (B2C) segments? How much growth is expected?
In 2013-14, the consolidated turnover of the company was about Rs 200 crore.
Who are the clients to whom you cater?
We supply products to all major fast food chains, including McDonald’s, Domino’s and Dunkin Donuts.
We are also supplying to international coffee chains, including Starbucks, Café Coffee Day and Barista.
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