New Delhi: Fast-moving consumer goods (FMCG) firm Pansari Group expects a 40 per cent year-on-year(YoY) revenue growth this fiscal as it has ventured into new geographical areas and new product lines, said Shammi Agarwal, director of the company in an interview with ETRetail.
The company has also seen growth in profits due to more stock-keeping units (SKUs) and its increasing presence in various cities across India.
During FY21 and FY22, its total revenue was Rs 1,011 crore from which exports contributed 11 percent to the overall sales. In FY20, the group’s combined turnover stood at Rs 891 crore, according to the company.
Now, it aims to achieve an export turnover of about Rs 350 crore this year as it focuses on diversifying geographically to build a network for its hotels, restaurants, and catering (HoReCa) products.
It has manufacturing units in Kolkata, Delhi, and Rajasthan.
Speaking on current consumer demand and the company’s business, Agarwal said, “As consumers are focusing more on quality, we have seen a shift from loose packets to branded packets in tier 2 and 3 regions.”
He said that presently its online business contributes 20 per cent to its overall revenue, which was previously 10-12 per cent in pre-Covid times.
Sharing thoughts on market share in the organized space, Agarwal said the company is already working towards increasing it. Currently, it is getting more SKUs so that the supply chain is managed and customers get products without any scarcity. It is also working to get more visibility through display arrangements at sales pockets and negotiating for better market share with retailers and distributors.
Further, the company said it focuses on volume growth rather than value growth as commodity value fluctuates often, so it is difficult to determine growth with it. In addition to that, the firm is not focusing on commodity products but on value-added processed products including syrups, gravy, ready-to-eat, ready-to-cook, and millet-based products.
The FMCG firm places its products in Lots Wholesale, Metro Cash and Carry, Foodhall, Rajmandir, and recently started catering to customers at D-Mart, and Reliance. It also sells through Blinkit, Zepto, Amazon, Big Basket, and several local kirana shops.
Pansari Group currently exports to more than 61 countries including Australia, New Zealand, Canada, USA, Hong Kong, Singapore, South Africa, Seychelles, Kenya, Tanzania, and more. On its exports business Agarwal said, “Though export markets are always volatile and the scenario keeps changing due to dollar rates and government policies, we are still hopeful and look positively to 2023.”
The company also hopes to reach 80 countries during the next 12 months. Aside from consolidating its position in current markets, it wants to keep its focus mainly on penetration in European and South American countries.