Connect with us

Hi, what are you looking for?

Finance

Looking at 18-20% growth for Prataap Snacks in next 3 years: CEO

The sweet snack category and deeper distribution in new geog..

The sweet snack category and deeper distribution in new geographies should lead to a growth of 18-20% in next 3 years, says Amit Kumat, MD & CEO, Prataap Snacks, talking to ET Now.

Edited excerpts:
This quarter, your revenue growth has come in very strong. What has been aiding the volume uptick and the margins?

After two quarters of poor growth because of GST, we have bounced back in the last quarter with close to 26% uptick. The margins are in line as we guided the market during the public issue.

How are your plans of consolidating presence in west and northern India panning out?

We have increased our presence in southern India. The number of distributors have increased by almost 500 in the current year and we are planning to expand further in north and west. In south India, we have grown nearly 50% last year. So, we are targeting more growth from southern India and some in UP and Punjab markets.

Are the issues relating to raw materials behind you now? You had talked about supply chain disruptions and price escalation too?

Supply is not an issue at all but if you see in the last quarter, the government had increased the duty on edible oil from 10% to 55% and that has resulted in increase in price by Rs 20. The potato crop is not that good and so prices have again increased though supply is not an issue at all.

Both potato and oil prices are high but we are trying to mitigate those effects by doing some changes in pack sizes and also reducing the channel margin. But some pressure on raw material pricing would remain in this quarter and next quarter.

…. market share then?

There would some pressure on that too this quarter and next because of increase in potato prices and oil duty. Higher crude prices are also resulting in higher packaging material pricing.

You have been able to grow strongly at a 25% plus rate over the last few years. Will this trend continue going forward as well and if so, what is it that is going to drive this kind of growth path for you?

We are looking at 18-20% growth for the next three to four years and that will mainly come from geographical expansion, new product introduction and something good in sweet snack category.

In the sweet snack category, we launched Yum Pie though we had some issue because of summer and chocolate was melting. That is behind us now and we are trying to develop a few more products in the sweet snack category. The sweet snack category and deeper distribution in new geographies should give a growth of 18-20% for the next two to three years.

Original Article

[contf]
[contfnew]

ET Markets

[contfnewc]
[contfnewc]

Finance

In an interview with ET Now, Dabur India Director Mohit Burm..

Science

The 147th Open championship will be at Carnoustie Golf Club in Scotland. Jan Kruger/R&A Golfers ..

Tech

Enlarge Oliver Morris/Getty Images) In response to an Ars re..

Tech

Enlarge/ You wouldn't really want to use Nvidia's ..