By Ritwik Sinha
New Delhi: Kolkata-headquartered Anmol Industries is aiming to double its revenue in the next five years and eyeing expansion in new markets across the country, a top company official said.
“Our management team is working on drafting a vision paper for future growth which will be ready in three months. It would help in formulating our medium-term strategy with a particular focus on making penetration in western and southern markets and also help in boosting exports to the Middle East,” Gobind Ram Choudhary, Managing Director, Anmol Industries, told Indoasiancommodities.com in an interview.
According to a research report, India is the second-largest biscuit consuming market in the world, growing at over 11 percent annually. The market that is slated to shoot up to over $7 billion by the end of 2022 fiscal is dominated by players such as Britannia, Parle, Champion, Kwality, Nestle, ITC, Anmol, and others.
Anmol has built its strengths in the eastern and northern markets with over 30 variants of biscuits, cakes and cookies rolled out through 2,500 distributors in its network.
However, for further high-trajectory growth it will need to make penetration in the western and southern markets.
“We fully realize this, and it will be our main focus. In the near run, we have planned to cater to the Gujarat market from our manufacturing unit in Greater Noida. At a later stage, we may even plan to set up a manufacturing unit probably in Maharashtra or somewhere in the south if we notice a surge in demand for our products in these zones,” Choudhary said.
The company now has seven manufacturing units to serve its two stronghold markets – Dankuni, Chanditala, Bhubaneswar, Hajipur, Greater Noida, Ghaziabad and Sambalpur.
The company, which has completed 25 years, also seems to be under pressure to step up its top-line which has been stagnant for the last couple of years. According to Choudhary, this is linked to disruptions in the market after the implementation of the goods and services tax, as majority of the distributors had faced problems.
The flat growth trajectory of recent years also seems to have hurt the company’s plan to go public. Market regulator SEBI had given its nod for the IPO last year, but according to Choudhary, the company has no plans of rushing into it immediately.
“We will wait for a more opportune moment when we have picked up the growth cycle again on critical parameters. The proposition has to be interesting for future investors,” he said.