Greendot Health Foods, which owns the popular nachos brand ‘Cornitos’, has plans to set up a new manufacturing facility in financial year 2019-20 as the company expects significant pick-up for its products. Besides, the company expects to touch the Rs 100-crore turnover mark by the end of the year on the back of product and distribution network expansion.
The new plant is likely to be set up in the central part of the country as the Greendot, which at present has one plant in Uttrakhand’s Roorkee, wants to save on logistic costs.
“Right now, we are evaluating options for the location of the new plant. Once the elections are over, we will check on the incentives the Central government and state governments would be giving and then make a final decision on where to make the investment,” said Vikram Agarwal, managing director, Greendot Health Foods.
Apart from a new plant, Greendot would also be expanding its manufacturing capacity from 300 tonnes of nachos every month to 500 tonnes in the Roorkee plant.
Having registered a CAGR of 20-25 per cent since its inception a decade ago, the family-owned company would expand its offerings in the nachos and non-nachos categories to take its turnover from Rs 60 crore in FY19 to Rs 100 crore by end of FY20.
“Our plans to foray into tier-II and tier-III cities, to enter non-corn-based snacks category and launch a new range of snacks and more flavours of flagship nachos before Diwali this year will help us achieve the Rs 100 turnover-mark. I also feel the headwinds the industry faced in the form of demonetisation and GST (Goods and Services Tax) is over now. I am very optimistic about the future,” Agarwal added.
Besides Nacho Crisps, the company sells salsa and cheese dips, roasted nuts such as cashews, peanuts, almonds, salted pumpkin seeds, and other products. However, 90 per cent of the company’s business comes from nachos.
While Cornitos has set up an ambitious target to corner a significant share of the nearly Rs 200 crore per annum domestic nachos crisp market, it would have to compete against deep-pocketed multinational companies, who have much wider reach in the country.
Agarwal feels that their expertise and commitment to offer healthy snacks gives them an edge over other players in the market.
“From the corn we use to the oil we fry in, there is no compromise on the quality part. We are not like other firms who are selling because they have to sell,” Agarwal explained.
On the export market side, Agarwal hopes to tap more European and Asian markets this year. At present, Cornitos is exported to 25 global markets.