MTR to revamp business for faster revenue growth
After going through a slow phase of growth in the past three years after demonetisation and implementation of GST, food products company MTR Foods is revamping its business and processes as it looks at a sales growth of more than 12 per cent this year.
The Bengaluru-based company, which is presently owned by Norwegian conglomerate Orkla, is hopeful of achieving a turnover of around ~9 billion in 2018 as compared to ~8 billion it reported last year.
Apart from introducing a higher level of digitisation in operations, costs optimisation measures and strengthening of sales and distribution network, MTR Foods is also planning to launch new products across the spices and ready to eat ranges in the coming year.
“As we are closing to reach ~10 billion revenue mark and aspire to increase it further, we need to do a lot of reengineering to cash in the future growth,” said Sanjay Sharma, chief executive officer of MTR Foods. “As part of this reorganisation, we have cut a lot of flab to be cost efficient. So, we are in the middle of this strategic plan, which will help us to sharpen our focus areas.”
He also said that, as far adoption of technology is concerned, the company was behind the curve, and is currently working on various areas to push digitisation. “We have put up a huge digitisation programme. We are digitising our front-end sales and operations,” he said. The company has also digitised its warehouse operations recently.
MTR Foods, which was acquired by Orkla for $100 million in 2007 from its erstwhile promoter Sadananda Maiya, has a strong presence in southern states like Karnataka, Andhra Pradesh and Tamil Nadu, with its spices and ready to eat product ranges. In the spices category, the company has a range of products including sambhar powder, curry powder, rasam powder, garam masala among others.