MTR Foods was acquired by Norwegian company Orkla for about Rs 350 crore in early 2007. Adopting a two-pronged strategy, MTR Foods aims to strengthen its distribution in North and West. At the same time, the company will also double its total marketing spend to build the brand equity in these regions. The company spends about 14 per cent of its turnover, which is currently between Rs 250-300 crore, on marketing.
Though MTR Foods is market leader in spices and masala category in South, other brands such MDH and Everest outsell it in North. Therefore, to start with, instant mixes would be the face of the brand in North and West. Under instant mixes the brand aims to promote breakfast range by leveraging its popular Idli, Dosa and other South Indian food instant mixes.
Sanjay Sharma, CEO of MTR Foods said, “By 2015, North and West should account for 40 per cent of our targeted turnover. We aim to double our turnover and become a Rs 500 crore brand by 2012, while trebling our profits as well.” The company’s current EBDITA margin is about 11 per cent and it has a debt of around Rs 30 crore. It aims to become debt free by 2012.
Read more on
http://www.mydigitalfc.com/news/mtr-foods-looks-expand-beyond-south-386
