The Group expects 20% of its revenue to come from value-added products, a segment which it is focusing on aggressively this fiscal‘
Mumbai: Delhi-based FMCG player Pansari Group is expecting a 50% increase in revenues in financial year (FY) 2025 over FY2024, Shammi Agarwal, Director of Pansari Group told IndiaRetailing. It is also expecting 70% year-on-year (y-o-y) volume growth, he added.
The company recently announced posting an increase of 20% in revenue in financial year (FY) 2023-2024, with a volume surge of 39%, without revealing actual figures.
As per media reports, the group had closed FY2023 at Rs 1,400 crore. It was expecting a 30% increase in FY2024, which comes to around Rs 1,820 crore. However, it has closed FY2024 at 20%, which comes to Rs1,680 crore.
A 50% increase in revenue means the group is targeting a revenue of Rs 2520 crores in FY2025, as per quick back-of-the-envelope calculations.
The company currently boasts 450 stock-keeping units (SKUs) and has a strong presence in north India, which accounts for 70% of its business with West and South collectively contributing 30%.
The over-60-year-old family-owned Group’s main focus is FMCG food products, which it sells under five brands: Pansari, Oreal, Shasha, Indimix, and Pansari Epicure.
The company’s Panasari brand portfolio, includes edible oils, speciality flours and cereals, rice and spices. Under Oreal, it sells a range of cooking oils. Shasha is its spices brand while Indimix is its ready-to-cook range. The Pansari Epicure is its range of enhancers, sprinklers and seasoning.
“In FY 2025, the focus will be on more penetration region-wise and both commodity and value-added products, especially the ready-to-cook range,” Agarwal said.
Specifically, in the next two years, the brand will focus on its recently launched tea brand TVOY with a target of at least Rs 100 crore in sales and a 70% year-on-year volume growth.
The company’s value-added products, which include its ready-to-cook range under the brand name Pansari Indimix, currently contribute 12% to 15% of overall sales. This is expected to increase by 20% within the next two years.
The company currently operates six manufacturing plants and nine warehouses. It has recently established depots in Ahmedabad and Mumbai to enhance distribution in Western India, to better service the market.
The brand is present across 1.7 lakh retail touchpoints and has a network of 800 distributors, which the brand is expanding aggressively to penetrate deeper into South and West.
Agarwal expects the regional contribution to increase over the next two years with aggressive expansion underway in West and South India. He expects these regions to contribute 40% to its business. In FY2025, the group will focus on increasing its presence in Maharashtra and Gujrat, Agarwal said.
“There is no intention of expanding into the East,” Agarwal said.
Pansari also has a thriving export business, which involves selling its products in over 80 countries, collectively contributing to more than 20% of its total business.
Q-commerce currently contributes 15% to its revenue, which it expects to increase by 22% in FY2025, Agarwal said.
