Global food giant McCormick & Company Inc has said that it plans to grow and expand the Kohinoor basmati brand and is eyeing revenue of $85 million from India in its first year of operations this fiscal.

“India is a top priority market and is in line with our emerging market growth strategy. We foresee India to be a significant business in 10 years and are committed to invest in this fast growing market,” said Mr Alan Wilson, McCormick’s Chairman, President and CEO.

The $3.3-billion food and flavour giant is eyeing 12 per cent of its revenues from the emerging markets including India and China by 2015 from the present 9 per cent. Currently, the US accounts for 60 per cent of McCormick’s sales, followed by France.

As part of its emerging market growth strategy, McCormick recently formed 85:15 joint venture with Kohinoor Foods Ltd, a manufacturer and marketer of basmati rice. McCormick has invested Rs 520 crore in the joint venture that will market the Kohinoor basmati brand in India.

The company is also evaluating the Indian market to introduce some food products from its global portfolio. “We have identified a few product platforms such as cooking ingredients (sauces and pastes) and convenience foods (ready-to- cook and ready-to-eat),” said Mr Satish Rao, Managing Director, Kohinoor Speciality Food Pvt Ltd, the India joint venture.

McCormick also plans to grow its packaged food business in India, acquired from Kohinoor Foods. “The Indian packaged food industry is estimated to be $10 billion and is growing along with families’ disposable income, making an attractive proposition,” Mr Wilson said.

The company has so far invested about $150 million in India, from where it also sources various spices such as pepper, turmeric and ginger among others for its global operations. McCormick has a 26 per cent stake in Kerala based Eastern Condiments Pvt Ltd.

Related Topics