Capital Foods targets Rs 500 cr revenue this fiscal

FMCG firm Capital Foods, owner of Ching's Secret brand of instant noodles and masalas, is targeting a topline of Rs 500 crore this financial year and expects 40 percent increase next fiscal.

"This year we will close at Rs 500 crore and next year we are looking at a turnover of Rs 700 crore. We are growing at a CAGR of 40 percent," Capital Foods Managing Director Ajay Gupta told PTI here.

Capital Foods sells Ching's Secret brand of instant noodles, masalas, sauces and Smith & Jones range of ketchup and ginger garlic paste.

Masalas contribute around half of the company's revenues.

"The soup and noodles is peripheral to us. Masalas contribute around Rs 250 crore out of the Rs 500 crore. Masala as a category is going to become Rs 1,000 crore for us in the next three years," he said.

Capital Foods is present in 11 states, with Maharashtra and Gujarat accounting for 45 per cent of its sales.

It plans to enter tier III and IV cities in the next two years.

The firm also plans to add two new facilities to its existing seven at an investment of Rs 75 crore.

"We are doing a plant at Panipat and one more at Vapi, to manufacture sauces, which will be commissioned in the middle of this year. The cost of the plants would be roughly Rs 75 crore," he said.

Capital Foods also exports frozen parathas and naan, Gujarati frozen vegetables and frozen fruits, under the brand Swad, to cater to the Indian diaspora.

Gupta said exports contribute Rs 70 crore to the overall revenues.

It has earmarked Rs 75 crore for advertising for 2017-18.

"This fiscal year we spent Rs 70 crore on advertising and next year we plan to spend Rs 75 crore," he said.

The company is also looking at inorganic growth and is scouting for acquisitions in the same product categories, Gupta said.