Indian food company MTR Foods is planning to invest Rs 2bn ($30m) in the next four to five years to increase its production capacity from 45,000 mt to 72,000 mt at its facility in Bengaluru, the capital city of the country’s southern state Karnataka.
The investment is part of its initiative to achieve a turnover of Rs20bn ($300m) by 2020 from the current Rs 7bn ($105m).
MTR CEO Sanjay Sharma was quoted by Livemint as saying: "If we need to continue to grow at this robust pace, we will need additional capacity and additional investments, we are putting together a plan to invest about Rs 2bn ($30m) in the next 4-5 years to increase our capacity."
Currently, MTR manufactures 140 food products and sells them in over 200,000 outlets in India and 30 stores across the world.
Last week, the company launched its own online platform for customers in Bengaluru, by investing Rs 5m to set up the portal.
MTR founder Sadananda Maiya, who owned 40% stake in the company, sold his entire share to Orkla for Rs 3.5bn ($52.5m). Later, he launched Maiyas Beverages and Foods, where he is currently serving as its managing director.
After acquiring a majority stake in MTR Foods, Orkla Foods has been making many changes in the company's systems and processes.
Orkla Foods executive vice president and CEO Atle Vidar was quoted by The New Indian Express as saying: "We have been able to increase productivity by some 30%. At the same time we have brought down costs by 10%."
Orkla is also planning to introduce a few of its brands in the Indian market. In North India, the firm noticed a 28% rise in its market share, while registering 18% growth in the south.
