Buy / Sell Bectors Food share
Mrs Bectors Food Specialities — the makers of the Cremica brand of cookies and English Oven bakery products— aims to be a pan-India player in the next two years while staying focused on its core north Indian market.
“We have started our journey with volumes coming out of Mumbai, Pune and Bangalore. So we shall be putting up our facility in Madhya Pradesh (MP) to see that the coverage of those markets is done from our Indore facility,” Anoop Bector, Managing Director at Mrs Bectors Food Specialities told CNBC-TV18.
The company’s focus is going to be on north India but West and South India are also important markets, Bector added.
Mrs Bectors Food posted mixed quarter one FY23 earnings. The company clocked in strong revenue growth of over 30 percent but the margin has declined due to higher expenses. However, the company has managed to keep its gross margin steady at 44 percent in spite of steep inflation and expects to further improve the figure going forward.
The company's strength is the premiumisation of its biscuits or its bakery products. The company’s overall business grew by 33 percent in quarter one of FY23 — biscuit business grew by 24 percent and bakery business grew by more than 50 percent.
“All businesses have done exceptionally well on the top line,” he said.
In terms of raw material price softening, he said, “There is a softening of raw material prices, the vegetable palm oil prices have come down and so we are also looking at the reduction in packaging costs. Overall we feel there is going to be softening of prices and we shall be benefiting from that and it will help us increase our EBIT margins between 13 percent and 14 percent.”
“We will continue to work towards growing better than the competition,” he said.
Currently, the company is at 400 plus distributors in the north Indian market and it plans to double its direct distribution with its retailers.
“Currently we have 160,000 retail outlets direct reach, we plan to double them in two years to reach 320,000,” he said.
The stock was up 6.77 percent in the last five days and 12.43 in the past month.
For the full interview, watch the accompanying video