Direct in the gross sales of dry fruits and nuts agree with shown a straight away correlation to the pandemic, corresponding to gross sales of other better-for-you or pretty-for-you merchandise available in the market. Gunjan Jain, MD at VKC Nuts, a used participant in the Indian dry fruits and nuts industry, grabbed the chance to transform the almost 100-yr-frail firm accurate into a novel omni-channel participant. Jain talks about the possibility of the category and firm’s plans. Excerpts:
Are you able to give us a background of
The firm, which is into processing, packing, export and import of nuts and dry fruits, used to be established in Jammu in 1926. Nutraj, the umbrella place of VKC Nuts, is the latest retail and individual place available in the market. The firm reported a 25% development in revenue to Rs 900 crore in the yr ending 31 March 2022 and has web page online a target of Rs 1,500 crore in the following fiscal yr. VKC Nuts currently has seven devices in Bengaluru, Delhi-NCR, Mumbai, and Jammu & Kashmir.
What is driving the demand for these merchandise, after a switch from used kirana shops to neatly-liked retail outlets and e-commerce platforms?
Globalization and consciousness of properly being advantages of nuts and dry fruits can even be a pair of factors driving gross sales. Specifically after COVID-19, patrons affiliate nuts and dry fruits with pretty properly being.
Equally, the expansion is additionally linked with rising earnings ranges. Having acknowledged that, India is restful at the tip of the iceberg. The per capita consumption of nuts and dry fruits is restful very low as when put next with the US and other developed markets.
What could perchance be your technique going ahead?
Whereas the industry is restful very fragmented, we affirm to be the final note participant available in the market. If one appears at numbers, we now agree with around 4% market fragment. By estimates, the industry is pegged at Rs 20,000 crore and we are nearing around Rs 1,000 crore. We belief to commence eight more manufacturing devices by 2024, every with a capability of 10,000 metric tonnes. We additionally goal to agree with an whole of 25 firm-owned shops and 50 franchise shops by the cease of 2023.
Originate you agree with any ideas on the coverage front?
The taxation in the industry is terribly excessive. Walnuts are on hand at a 120% tariff and raisins are at a 105% tariff. If one thing can even be executed on the tariff front, it could perchance perchance motivate every person. There ought to be more consciousness on phase of the authorities, seriously as these are wholesome meals objects. This could perchance likely likely additionally fair motivate amplify the category.