Modern Food Enterprises, which had been acquired by Everstone Capital, would gradually enter the non-bread categories like cakes, rusks, cookies, biscuits and buns. “We are planning to introduce non-bread items like cakes, rusks, cookies, biscuits and buns. This will be done under the Modern brand,” said Aseem Soni, CEO and board member of Modern Food.
He said that the present turnover of the company from the bread business is INR 270 crore which is targeted to touch INR 1000 crore by 2021. Soni said that Modern was the market leader in the organised bread segment, adding that the company was looking at a revenue growth of 25 per cent in the current fiscal.
Targeting one-third of the total revenue from the non-bread categories in the next five years, Soni said that to meet the 2021 projected turnover, the company would have to increase bread sales manifold for which Modern was looking at acquisitions of some existing brands. Modern had already started selling chapatis and parathas in the South Indian markets of Kerala, Bengaluru and Tamil Nadu. Everstone had acquired Modern from Hindustan Unilever in April 2016.
Managing director of Everstone Capital Roshini Bakshi said that Modern was now poised to grow as the building blocks had been put in place. She said that Everstone would exit Modern through an IPO, adding that typical investment horizon was five to 10 years.