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As part of its international expansion, iD Fresh Food will open six factories with an investment of Rs 120 crore each. PC Musthafa, CEO and co-founder of iD Fresh Food, said the first factory will be built within a year,
Last year, as part of the first phase of its international expansion, iD Fresh entered the US and UK markets with its coffee products, followed by paranthas. Now, as part of the third phase, it will set up factories in both countries.
Mustafa told business line, “Overall, we plan to build six factories – three in the US, one in the UK, one in Singapore and one in Saudi Arabia. These will be similar to our Delhi factories.” Earlier this month, the company 15,000 sq. ft. factory in Haryana, expanding into North India.Currently, it operates in Delhi, Dubai, Mumbai, Bangalore and Hyderabad.
To run a fresh food business, local manufacturing facilities are critical, the company said. “As we expanded our delivery base, we used to fly from Mumbai to Delhi and then switch to training, and it turned out to be unfeasible. That’s why we built a local manufacturing facility,” he said.
Fierce competition in the UAE
Despite facing some of the fiercest competition in the UAE, Musthafa claims that the UAE business is doing quite well. “We compete with around 24 players in the wet batter segment. The business has grown over the past three years and today it accounts for a third of our total sales.” The company posted revenue of Rs 419 crore in FY22 , is expected to generate Rs 600 crore in FY23.
He attributes its success in the UAE market to a combination of three factors: well-established last-mile storage; greater acceptance of packaged food and consumers willing to pay more for the product.
product description
iD Fresh has a diverse portfolio of products such as wet batter, dairy, parota, coffee and more. “Both the wet batter and parrota segments contribute 30-35% to revenue,” the CEO said. In addition to its idly-dosa batter portfolio, its dairy portfolio, established four years ago, has also been successful. He added: “With our cheese sales of Rs 7 crore per month and curd sales of Rs 250 crore per month, we expect ghee (the latest dairy product) to generate Rs 100 crore in the next three years. ”
Posted on October 20, 2022
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