Despite the tough business environment due to the pandemic, Kolkata-based JK Masale is expecting around 25-30 per cent growth in turnover during the current fiscal on the back of an expanding footprint and launch of new products.
The company had registered 10-15 per cent growth in turnover at around ₹300 crore in FY-21.
According to Vijay Jain, Chief Marketing Director, JK Masale, plans are afoot to roll out a slew of products focused on boosting immunity. The company, which has a strong foothold in the eastern and north-eastern region is also looking to strengthen its presence in the southern markets.
“The year 2020 started on a tough note, though the demand for spices and other products were strong, supply was hit due to the lockdown on the back of Covid-19 induced pandemic. However, by May-June last year we had a good turnaround in business and we could cover up our losses and grow by nearly 10-15 per cent last fiscal. In FY-22 we hope to grow by around 25-30 per cent,” Jain told
Expanding capacity
The spices market in India, which is estimated to be close to ₹25,000-30,000 crore, is largely dominated by unorganised players controlling nearly 78-80 per cent of the total market. However, there is a strong growth potential for the organised market due to the increasing consumer awareness about hygiene and food safety, he said.
Driven by the steadily increasing demand, the company had doubled its production.
J K Masale has five manufacturing units, two each in Gujarat and West Bengal and one in Rajasthan with a current manufacturing capacity of 28,000 tonnes.
The company, which had added close to 10-12 new products last fiscal, is looking to roll out another 10-12 during the current financial year.
The company, which has established its presence in the southern markets of Hyderabad and Chennai, would look to further strengthening its presence in these markets before venturing into newer geographies.
Also read: JK Masale eyes South, to expand overseas
The spices and seasonings manufacturer had recently launched e-commerce venture, JK Cart to cater to customers across the country. It has witnessed a significant growth in sales on e-commerce channel with the segment generating approximately two per cent of the company’s total revenue. It expects the share of online to increase to around 10 per cent in the next two-to-three years.