iD Fresh Food will be making a fresh start in the US this year by relaunching its operations, and as part of this plan, the company will introduce two popular food products, i.e., parotta and chapati. This decision follows an unsuccessful attempt by the company last year, according to a top company executive.
In April 2022, the company made a foray into the US with its highly popular product, parotta. Unfortunately, due to several distribution challenges, the endeavour did not yield the desired success, the CEO and co-founder, PC Musthafa, told businessline.
The company also expanded its presence into several other international markets, including Saudi Arabia, the UK, and, on a small scale in Singapore. Presently, international operations contribute approximately one-third of its total turnover.
6 new factories
Moreover, as reported by businessline in a previous interview, iD Fresh also plans to establish six international factories.
Along with the market expansion, iD has a pipeline of products to be launched this year. Elaborating , the CEO said, “The new product development initiatives will be aimed at solving consumer problems and will be free from any chemicals or preservatives. The products being planned include ready-to-cook batters, Indian bread, fresh breakfast food items, frozen food, and a health portfolio comprising both food and beverages.” It is working on nine sets of products and intends to launch a couple of them in the next few quarters.
Batter, parotta
iD Fresh operates multiple portfolios encompassing wet batter, dairy, parotta, coffee, and other offerings. In terms of market share, the wet batter and parotta segments hold a significant portion, estimated to be around 70–75 per cent, the CEO noted.
Additionally, in regards to the revenue contribution, the wet batter segment contributes approximately 38–39 per cent of the revenues, while the parotta segment accounts for 30 per cent, and the dairy segment contributes around 15 per cent of the overall revenues for the company.
The company claims to have recorded consistent growth, achieving an annual turnover of ₹524 crore in FY23, and is expecting to close FY24 at around ₹700 crore. Going forward, the spokesperson stated, “Regarding profitability this year, we anticipate a growth of approximately 40 per cent and a close-to-double-digit EBITDA.”
Although there are currently no immediate plans to secure additional funds, the company has successfully raised approximately ₹300 crore to date.