E-commerce is changing the way people buy and sell things.
The 91-year-old processed food products firm MTR has realised the importance of having an online presence.
In a few days from now, employees of MTR will be taking part in a pilot to test its e-commerce processes.
“We are testing it internally. We have tied up with a third party logistics provider to take care of deliveries,” Sanjay Sharma, Chief Executive Officer, MTR Foods, told BusinessLine .
Sharma, a professional CEO, had taken over the mantle from Sadananda Maiya in 2009, two years after Norwegian firm Orkla acquired the family-run business for about $100 million.
Interestingly, the market is abuzz with the news of MTR scion Sadananda Maiya starting his own e-commerce venture in the ready-to-eat segment.
He sold the firm in 2007 to provide an exit route to the investors and led the firm for two years till Sharma took over the reins.
Sharma, who is here to attend a conference on ready-to-eat foods, said MTR had roped in a food historian to study the food habits of people in the South.
Focus on South “We are going to meet the demands of sub-cultures in these States. The typical Indian snacks they are selling are basically North Indian snacks. But we have a rich variety of snacks in the South that we are going to tap,” he said.
Three categories After change of hands in 2007, the firm had a stock-taking of the product portfolio and aligned them in three broad categories — masalas (which contributed to 35 per cent of sales), ready mixes (32 per cent) and vermicelli (14 per cent).
It identified snacks and ready-to-eat segments as the two new growth areas.
The turnover of the firm went up to ₹600 crore in 2014 against ₹180 crore in 2007. “We are expecting to grow about 18 per cent in 2015,” Sharma said.