Vadodara-based Saraf Foods Ltd today informed that the company has invested Rs 15 crore to increase the freeze-drying capacity by 50 per cent from 7.5 tonnes per day to 11 tonnes per day input at its facility in Vaghodia GIDC near Vadodara.
The company eyes rapid growth in demand for freeze-dried products with increasing trend of ready-to-eat foods in urban centres.
With an annual turnover of Rs 24 crore, Saraf Foods exports about 60 per cent of its output to the markets like US and Europe.
The company plans to increase its turnover by 10 times by 2018. It is also exploring forward and backward integration in both domestic as well as international markets to achieve this target. “Also, we are also looking forward to explore other M&A opportunities to fuel our growth,” said Suresh Saraf, Managing Director, Saraf Foods.
“We will require additional space to expand our capacity to meet the growing demand from the ready-to-eat food makers. We are scouting for land in the vicinity of our existing facility,” he said.
A Mauritius-based PE Fund DSG Consumer Partners had acquired 29 per cent stake in the company by investing about Rs 10 crore, pegging the company’s market valuation at around Rs 35 crore.
The company has increased its production capacity by four times in the past five years. The latest expansion was done this year with an investment of about Rs 15 crore.
Company’s freeze-dried products include sweet corn, green peas, onion, banana and green peppercorn.