Faridabad-based GreenDot Health Foods, known for its flagship brand Cornitos, said that it will more than double its manufacturing from 1,500 metric tonnes to 3,500 metric tonnes due to rise in demand.
"We will better our distribution network in tier 2 and tier 3 cities and will also improve our export market which is now 20 per cent," said Vikram Agarwal, Director, GreenDot Health Foods.
Agarwal said Greendot Health Foods has a vision to bring in agro-based healthy snack manufacturing process lines into the country, adding value to its flagship brand Cornitos.
The FMCG player has recently entered the ready-to-eat segment with the launch of taco shells. The company calls it the "do-it-yourself" range as it has expanded its presence in snacks from nacho crisps to pop n crunch and now the ready-to-eat segment.
With taco shells, it is again targeting the younger consumer base that is fond of international recipes with Indian flavours. Similar to Yum! Brands' Taco Bell, the tacos launched by the snack manufacturing firm have fillers to be eaten as a "smart meal" at home or in offices.
"We are going to target the HoReCa (hotel, restaurant, cafe) industry initially where the demand for this product is very high to create different recipes," said Agarwal.
The company is investing Rs 35 crore to increase its production capacity. Healthy snacking is still at a nascent stage in India, with big brands such as ITC and Pepsi commanding a large share of the Rs 15,000 crore snacking market.
GreenDot Health Foods said its below-the-line advertising efforts have paid off. "For the past two years we have been working hard to increase brand awareness and have received a good response," Agarwal said.
The company clocked revenue of Rs 34 crore in 2014-15, 40 per cent more than that in the previous year. It is targeting revenue of Rs 10 crore from the new range.
Established in 2009 under GreenDot Health Foods Ltd banner, it is a Part of 130 Crore GC Group which Manufactures Capacitors & Electric Grade MPP Films. It has 70 per cent revenue from retail and institutional trade in India and rest from exports to various countries across the globe.
Keeping in mind the health aspect and tempting palate, Cornitos nachos make for a healthy snack that are baked and cooked with healthier Corn oil keeping in mind the health factor.
The company says the snack is 100 per cent corn and gluten-free, and has zero cholesterol or trans fats. It contains up to 40 per cent less oil than regular potato chips. The sale of Cornitos Nachos is growing as demand for "in-between-meals" snack is growing. This Nachos producer has the most modern Manufacturing facility spread across two acres located in Roorkee, Uttarakhand.
Though Tortilla chips are a product of the western markets, the company has launched 10 flavors which suits the Indian palate very well - Tangy Masala, Sea Salt, Sizzling Jalapeno and others.
Cornitos is one of the few companies to export to the US. They are also currently exporting the product to Nepal, Singapore, Nigeria and Ghana Sri Lanka, Thailand and Korea, China, Australia, UAE, New Zealand, Malaysia. The brand which has a pan-Indian presence and available across major FMCG stores (Spencer's, EasyDay, Carrefour, More, Hypercity, Big Bazaar, Nilgiris, Le Marche) has also forged partnership with all leading domestic airlines.
Currently the nacho provider is available in 250 tier I and II cities through a network of over 25000 Plus retailers. The brand operates in Tier I and II cities and is following a rapid expansion plan in Tier III cities and towns.
The company expects revenue from Tier II and III cities to be 25-30 per cent. The brand is growing at 40 per cent annually and has 80 per cent market share in Nacho Chips Category in India.
With an initial investment of a little over Rs 20 crore the brand has already broken even in 2013 and aims to reach the 100 crore target in the next 3 years. Recently, it launched economical package of Rs 15. The target stores are Kirana stores, Mom & Pop stores, B & C category. This pack is intended for mass penetration.
