Widening its ethnic offerings, Mother's Recipe, the brand of pickles acquired by Desai Brothers from ADF (American Dry Fruits) is planning to expand its range. McKinsey is advising it on the strategy to grow faster in the FMCG business.
From just being a pickles brand, the company intends getting into a range of ethnic foods comprising papads, cooking pastes, namkeens, spices and ready-to-eat products.
Raj Pinjani, Chief Operating Officer, Foods Division, Desai Brothers Ltd, said: "All these products are under the scanner and we have McKinsey advising us on the strategy to go forward in the business.''
According to the company, the ethnic food business in the country is estimated to be more than Rs 4,500 crore and is growing at 15 per cent every year.
Having already invested Rs 20 crore in the Mother's Recipe brand, Desai Brothers is open to making further strategic investments in areas such as manufacturing and distribution. Besides, its also is on the lookout for acquiring more ethnic brands in future.
Since acquiring the Mother's Recipe brand for Rs 6 crore in 2002, the company has been in the process of rejuvenating the brand. Currently, it has segmented the offerings with regional speciality pickles.
Adds Mr Pinjani: "While the MNCs can dominate the category of Western foods, we believe it is local companies that can do well in ethnic foods as they understand the nuances of the business.''
The company has also beefed up its distribution network and currently has 2,000 distributors reaching out to 2.5 lakh retail outlets across the country.
It has also appointed Enterprise Nexus to unleash a campaign for the Mother's recipe brand with the baseline, `Discover the taste of tradition'. According to Mr Anil Sanjivan, Executive Director, Enterprise Nexus, "The commercial for the brand focuses on appetite appeal."
Mother's Recipe is also enhancing its presence in markets overseas. The brand, already available in West Asia, will now see a presence in the US, the UK, Australia and Canada. The company will also supply chutneys, cooking pastes and ready-to-eat foods under the Mother's Recipe label.
Stepping up its international presence even further, Mother's Recipe has also been chosen as the official pickles brand and is to be served on all Air India flights.
The Rs 60-crore Mother's Recipe brand has yet to register profits but intends breaking even by next year.