Soulfull to use Tata network to widen reach

Millet-based breakfast cereal and snacking brand, Soulfull, post its acquisition by Tata Consumer Products (TCPL), plans to expand distribution network by more than three to five times in the near future, Prashant Parameswaran, managing director (MD) and chief executive officer (CEO), Tata Consumer Soulfull Private Ltd, said.

Currently, Soulfull has a reach in around 12,000-15,000 outlets spread across 12 cities, most of which are metros and urban areas.

“Post acquisition by TCPL, we aim to tap into the parent company’s vast distribution network, spread across India. From TCPL’S side, Soulfull fits into its existing portfolio as a healthy millet-based snacking brand,” Parameswaran told Business Standard. TCPL, a few weeks ago, acquired Kottaram Agro Foods, the owner of Soulfull brand, for an enterprise value of around ~155 crore. Started in 2013 by Parameswaran, Soulfull has managed to place itself as a niche brand with a strong focus on reinventing millets in a modern format. Soulfull is looking to expand the current basket of snacks and breakfast cereals made from millets into other offerings in the health and wellness portfolio.

The health and wellness portfolio is estimated to be a ~20,000-crore market of which various segments such as breakfast cereals and snacking are growing at around 15 per cent per annum.

“We have a product called ‘Smoothix’, which is a millet-based health drink, presently sold only through the online medium. But we are soon looking to sell this through the offline format as well,” Parameswaran said.

He said TCPL saw in Soulfull a brand which has a good product, good innovation, big in technology, ability to get into a scalable business and traction of a brand.

Soulfull did a turnover of around ~30 crore in FY20, which is expected to grow manifold, post acquisition by the Tatas.

Parameswaram said that in the last few years, more than 50 per cent of millet consumption has been moving into the alternative space and not just staples, such breads (or rotis).

He said procurement from farmers of ragi, jowar and bajra isn’t a problem as data shows that production has risen sharply in the last 17 years.

Parmeswaran said he was heavily inspired by the growth and popularity of Peruvian ‘Quinoa’ during his stint in Safeway Supermarket in the US.

He now feels that the Centre’s push to declare the year 2023 as the ‘International Year of Millets’ will do the same for Indian millets and it will lead to a quantum jump.

“I got curious about ‘Quinoa’, when I was on the other side. And, when I started researching and studying about it, I found it to be very similar to Indian millets. Then, when I left my job and came to India, I started this venture initially with some seed capital from friends. Then a series ‘A’ funding came later,” Parmeswaran said.

He feels that millets could get a big boost if the Centre includes it in the public distribution system (PDS).