Friday, June 14, 2024

Cremica Foods eyes INR 500 crore funding, plans expansion and new product launches

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Cremica Foods Ltd,  a brand known for its assortment of condiments like mayonnaise and ketchup, intends to secure INR 500 crore in funding, a move that would propel its valuation to INR 2,000 crore. Akshay Bector, the Chairman and Managing Director of Cremica Foods Ltd, disclosed that the company intends to dilute 20-30 percent of its equity to achieve this objective.

The infusion of capital will lead to several strategic initiatives. Firstly, Cremica plans to bolster its operational efficiencies and reinforce its working capital reserves. Additionally, the brand aims to diversify its product portfolio by venturing into new categories such as frozen items, specialty beverages, and pickles.

Despite encountering regulatory hurdles that prevented fundraising efforts in the previous fiscal year, Cremica remains undeterred in its pursuit. The brand plans to adopt a hybrid retail and HoReCa (Hotel/Restaurant/Café) strategy across all its business verticals. Beginning with the HoReCa sector for new product launches, the company intends to gradually transition towards retail distribution for its entire novel range.

At present, Cremica operates a manufacturing unit within Una’s Cremica Foodpark dedicated to sauces production. The brand recently expanded its manufacturing capabilities by acquiring an additional unit, where it plans to install a new production line, further enhancing its sauce manufacturing capacity.

In tandem with its manufacturing expansion, Cremica aims to broaden its distribution network substantially. The goal is to escalate from 400 distributors and 20,000 retail touchpoints to 700 distributors and 40,000 retail touchpoints, effectively doubling its earlier reach.

With an annual revenue of Rs 320 crore for FY 22-23, Cremica is poised for significant growth with the infusion of fresh capital. The potential funding will catalyze the brand’s expansion endeavors, propelling it toward operational efficiency and a substantial uptick in valuation.

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