Schedule a Call Back
ADF Foods targets revenue doubling every 3 yrs, eyes domestic growth
Industry News- Jan 18,24
The company aims to capitalize on the increasing demand for pre-cooked food items in both international and domestic markets.
ADF Foods, a ready-to-eat food manufacturer, has set an ambitious goal of doubling its revenue every three years, currently standing at approximately Rs 450 crore. The company aims to capitalize on the increasing demand for pre-cooked food items in both international and domestic markets.
Presently, 98% of the Mumbai-based company's revenue comes from overseas sales. However, it is intensifying its focus on the domestic market through the newly-launched brand Soul, featuring pickles and cooking pastes. The company plans to grow Soul to Rs 100 crore in the next three years, according to Bimal Thakkar, the chairman and managing director.
To support its growth strategy, ADF Foods will invest Rs 100 crore over the next two years to expand manufacturing capacity, and it is also exploring acquisitions for inorganic expansion. Thakkar highlighted the company's debt-free status and cash reserves exceeding Rs 150 crore. Currently operating in Gujarat and Maharashtra, ADF Foods has identified a location in Surat for a new 1 lakh square feet greenfield plant, with an estimated cost of Rs 60 crore. Additionally, it plans to invest Rs 30-40 crore in expanding existing capacity.
Thakkar expressed the company's openness to inorganic expansion, emphasizing their value-oriented approach in evaluating potential takeovers that complement their existing business.
ADF Foods operates manufacturing facilities in Gujarat and Maharashtra, with warehouses in Atlanta and New Jersey in the US. Thakkar mentioned the company's commitment to doubling revenue every three years, attributing this growth to flagship brand Ashoka's 35% compounded annual growth rate. Other brands like Truly Indian and Soul are also gaining traction.
Ashoka, with a current valuation of over Rs 200 crore, serves the Indian diaspora overseas. Truly Indian, catering to non-Indians, has reached Rs 15 crore, while Soul, targeting the Indian market, has achieved Rs 3-4 crore in business. Thakkar sees significant opportunities for Truly Indian and projects Soul to become a Rs 100 crore brand in the next three years.
ADF Foods offers a diverse product portfolio, including frozen snacks and shelf-stable products under various brands such as Camel, Aeroplane, and Nate's (offering plant-based meat and vegan food options). The company has successfully entered global markets and plans further expansion.
North America, including Canada, constitutes ADF Foods' largest market, followed by Europe, Gulf Cooperation Council, and Asia Pacific. In the first six months of the current fiscal year, the company reported a 40% year-on-year increase in consolidated net profit at Rs 29.7 crore, with revenue reaching Rs 237 crore. The Ebitda margin rose to 18.4% in 1HFY24, compared to 13.3% in the same period last fiscal year.
Promoters hold a 36.29% stake in ADF Foods, with Infinity Holdings being the largest public shareholder (13.06% stake). Authum Investment and Infrastructure (12.05%) and Sixth Sense Ventures, founded by Nikhil Vora (6.4%), are also notable stakeholders in the company.
Source: Mint
Related Stories
Auto & Auto Components
Electrogenic acquires TREMEC Electric GT, establishes US base
British EV technology firm Electrogenic has acquired TREMEC Electric GT, establishing a permanent US base in Huntington Beach, California, to support its North American expansion.
Read moreMachine Tools & Accessories
Aurionpro wins nearly Rs 1 billion AI-ready data centre order
Aurionpro Solutions has secured an order worth nearly Rs 1 billion to build and project-manage digital infrastructure for an AI-ready data centre in Navi Mumbai.
Read moreRailways
India–Japan Partnership: Catalysing the Next Phase of Railway Innovation
Gaurav Lath and Nitin Jain, Founders, of Concord Control Systems discuss how India-Japan high-speed rail collaboration, advanced technologies and AI can transform India's railway ecosystem for the f..
Read moreRelated Products
Food Grader Machine
Food, Dairy and Beverage Machinery
Sree Valsa
Engineering Company offers a wide range of mild steel food grader
machine.
Food Grade Hydrochloric Acid
Food, Dairy and Beverage Machinery
Aditya Birla Chemicals manufacturers food grade hydrochloric acid.
Softy Ice Cream Machine
Food, Dairy and Beverage Machinery
Sheth
International offers a wide range of softy ice cream machines.
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
