Friday, February 10, 2012: 04:10:32 PM


Agro Tech’s `100 Crore Expansion Plans

Agro Tech Foods—the producer of Sundrop oil, Act II popcorn and other food items— has officially announced its plans to invest `100 crore in expansion over the next 2–3 years. This decision comes two months after ConAgra, the American packaged food firm, announced its decision to increase its stake in the company to over 50 percent. ConAgra’s increased equity indicates its confidence in the company.

Agro Tech’s initiatives include the diversification of its product offerings in an effort to enhance its India portfolio. Currently, core edible oil constitutes 60 percent of the firm’s business, but the company is attempting to extend its brand coverage to other products. The company plans to launch oil sprays in cans, ready-to-eat meals and peanut butter across the country, thus expanding its Sundrop brand. The construction of a peanut butter plant in Gujarat is underway as well. It may also launch a premium brand from its American parent’s portfolio to enter segments such as chocolate desserts and puddings. Agro Tech currently operates three lakh stores, which indicates a tripling of its business in the last four years. It is targeting a million points of sale by 2013.

The future prospects of the company appear to be quite lucrative as it endeavoursto enhance its capacity by introducing a third brand in the ‘indulgence’ space to complete its India portfolio, but no time frame has been given yet.

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