This swing back to profitability comes despite challenging market conditions,  highlighting the effectiveness of the brand’s focus on value-added products and operational efficiency. Its value-added portfolio grew by 15% year-on-year, with its curd products maintaining a 35% CAGR. The company has been sustainably positive for three years  since its break-even in 2021.

Rashima Misra, Cofounder and ED, Milk Mantra, said, ‘‘Our journey from a Rs 6.56 crore EBITDA loss to a positive 6% margin, coupled with our industry-leading 28% contribution margin, reflects the strength of our business model. This milestone enables us to further invest in innovation and expansion of our ‘Milky Moo’ brand, while continuing to support our network of 80,000 farmers.’’

The company’s B2C approach continues to drive its success, with 95% of revenue generated through its own general trade distribution channel. Its D2C initiative, ‘Daily Moo’, has gained significant traction, contributing 5% of total revenue and serving approximately 4,000 daily orders in Bhubaneswar alone.

The recent USD 10 million funding from USDFC has further fueled the company’s expansion plans. It is on the verge of completing a new fermented products manufacturing plant that  set to bolster the regional expansion of the Milky Moo brand.

Looking ahead, Milk Mantra plans to scale up its D2C model, expand into key markets, and introduce innovative niche products over the next two fiscal years. The company remains committed to growing its farmer network, reinforcing its dedication to ethical milk sourcing and rural economic development.

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These additions mark a significant milestone in The Health Factory’s mission to promote healthier dietary choices. Maida, a refined form of wheat flour often found in processed foods, has long been criticized for its adverse health effects. By providing maida-free alternatives, The Health Factory aims to help consumers achieve their wellness goals while enjoying their favorite foods guilt-free.

Commenting on the occasion, Vinay Maheshwari, CEO, said, “At The Health Factory, we have been aggressively expanding our manifesto, portfolio, and operations this fiscal based on our research market and the demand of zero maida products and other baked goods. Based on this, we decided to expand the Zero Maida Range to match the changing demand of new-age consumers. With our new range of healthy products, we will be catering to the needs of every age group.”

He added that the company expects 2x revenue growth after the introduction of the new SKUs. “Th new products are expected to contribute up to 15% of the overall revenue. We are aggressively marketing these products.”

In addition to being maida-free, The Health Factory’s new products are free of artificial additives, preservatives, and trans fats, making them an ideal choice for individuals seeking clean label options. By harnessing the power of natural ingredients and innovative food technologies, The Health Factory continues to redefine the landscape of healthy, guilt-free eating.

The Health Factory’s new Zero Maida products are now available on Blinkit, Swiggy Instamart, Zepto in Mumbai, Pune, Delhi NCR, Bangalore, Chennai and Hyderabad across general and modern trade stores.

The post The Health Factory Expands its ‘Zero Maida Range’ product portfolio appeared first on Business of Food.

The estimated acquisition cost, covering the manufacturing facility and the brand, is up to Rs. 28 crore, aligned with the net assets gained through this transaction. The funding for this deal will be a combination of internal accruals and debt, pending approval by the Board.

Commenting on the acquisition, Shreeram Bagla, Managing Director, Annapurna Swadisht Ltd, said, “We believe this acquisition presents an opportunity that aligns well with our Company’s overall strategy of strengthening our presence as a formidable player in the packaged food industry in semi-urban and rural markets of India. We aim to leverage our existing distribution network in Tier III, Tier IV, and Tier V towns in eastern and northeastern markets to increase sales of Arati brand mustard oil by offering consumer packs priced at Rs.10 and Rs.20, which have robust and growing demand in these markets. We expect the acquisition to boost our revenues and improve our profitability going forward.”

ASL currently manufactures snacks and beverages, offering around 75 SKUs across 10 broad categories. Its products are available at over 6 lakh retail touch points primarily in Tier III and Tier IV markets of Bihar, Jharkhand, West Bengal, Assam, Odisha, and Uttar Pradesh. Annapurna Swadisht had revenues of Rs.131cr for 6 month period that ended on September 30, 2023.

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