The Hindu Business Line : Mohan Meakin to expand food business

Growth targets
The company is targeting 60-70 per cent growth in its foods division over the next five years and hopes to break-even by next year
Turnover is also expected to grow by Rs 10-15 crore in five years from the current Rs 25-30 crore

New Delhi , July 8

Liquor company Mohan Meakin Ltd is reworking its strategy for its foods business. The company is in the process of expanding its foods basket, which largely consists of juices and breakfast cereal.

"Apart from introducing more juice variants under the Gold Coin brand, we are also targeting the children-specific and the functional foods segment based on vitamins and are working on launching more food products in the coming few months," Mr Vinay Mohan, Executive Director, said.

For starters, the company has entered the Tetrapak segment for Gold Coin and has launched six new flavours under the brand. These include Gold Coin fruit juices (orange and mixed), nectars (litchi and guava and pineapple) and mango drinks.

It has roped in the German food company, Dohler, to develop more juice flavours to tap the potential in the fruit and juice market.

`Immense potential'

Mohan Meakin is also working on developing a concept drink, Mr Mohan said. "We would focus on fortified multi-vitamins drinks for children and also see immense potential in the sports drink segment and would launch an isotonic drink in the near future," he said. The company is also looking to enter the premium juices category, he added.

Further, the company is targeting a 60-70 per cent growth in its foods division over the next five years and is targeting to break even by next year. "In five years, we expect a nearly Rs 10-15 crore growth in our turnover from the current Rs 25-30 crore," Mr Mohan said. The food division currently contributes close to Rs 30 crore in revenues.

The company is also considering a foray into other processed foods such as jams and squashes in a year's time. In the breakfast cereals category, it has launched three new variants of cornflakes— chocos, strawberry and mango.

Although the company currently does not have a packaging plant of its own, it is studying the possibility of investing in a plant when it achieves higher volumes. "We should be setting up a Tetrapak machine in the next year and a half and expect to invest around Rs 8 crore," Mr Mohan said.