Development in the sales of dry fruits and nuts have proven a affirm correlation to the pandemic, similar to sales of other better-for-you or real-for-you merchandise available in the market. Gunjan Jain, MD at VKC Nuts, a old participant in the Indian dry fruits and nuts commercial, grabbed the chance to remodel the nearly 100-yr-venerable company loyal into a up to the moment omni-channel participant. Jain talks in regards to the aptitude of the class and company’s plans. Excerpts:
Can you give us a background of VKC nuts?
The company, which is into processing, packing, export and import of nuts and dry fruits, become as soon as established in Jammu in 1926. Nutraj, the umbrella label of VKC Nuts, is principally the most up to the moment retail and person label available in the market. The company reported a 25% boost in income to Rs 900 crore in the yr ending 31 March 2022 and has purpose a purpose of Rs 1,500 crore in the subsequent fiscal yr. VKC Nuts currently has seven devices in Bengaluru, Delhi-NCR, Mumbai, and Jammu & Kashmir.
What’s driving the ask for these merchandise, after a swap from old kirana retail outlets to traditional retail retail outlets and e-commerce platforms?
Globalization and awareness of effectively being advantages of nuts and dry fruits in overall is just a few factors driving sales. Particularly after COVID-19, consumers affiliate nuts and dry fruits with real effectively being.
Equally, the boost will most in all probability be connected with rising earnings levels. Having talked about that, India is aloof on the tip of the iceberg. The per capita consumption of nuts and dry fruits is aloof very low as in comparison with the US and other developed markets.
What would be your device going forward?
Whereas the commercial is aloof very fragmented, we notify to be the supreme participant available in the market. If one looks at numbers, we have now around 4% market fragment. By estimates, the commercial is pegged at Rs 20,000 crore and we’re nearing around Rs 1,000 crore. We belief to originate eight extra manufacturing devices by 2024, each with a capability of 10,000 metric tonnes. We also purpose to have a total of 25 company-owned retail outlets and 50 franchise retail outlets by the discontinue of 2023.
Construct you’ve got any solutions on the coverage entrance?
The taxation in the commercial is extremely excessive. Walnuts are on hand at a 120% tariff and raisins are at a 105% tariff. If something might per chance per chance additionally additionally be performed on the tariff entrance, it would abet everybody. There ought to be extra awareness on half of the authorities, especially as these are wholesome meals objects. This can abet enlarge the class.