Per capita intake of nuts and dry fruits in India is still extremely low: Gunjan Jain
Development in the sales of dry fruits and nuts have actually shown a direct correlation to the pandemic, comparable to sales of other better-for-you or good-for-you products in the market. Gunjan Jain, MD at VKC Nuts, a traditional player in the Indian dry fruits and nuts market, got the opportunity to transform the almost 100-year-old business into a modern omni-channel player. Jain speaks about the potential of the category and company’s plans. Excerpts:
Can you give us a background of
VKC nuts?The business, which enjoys processing, packing, export and import of nuts and dry fruits, was established in Jammu in 1926. Nutraj, the umbrella brand name of VKC Nuts, is the newest retail and customer brand in the market. The business reported a 25% growth in profits to Rs 900 crore in the year ending 31 March 2022 and has actually set a target of Rs 1,500 crore in the next. VKC Nuts currently has seven units in Bengaluru, Delhi-NCR, Mumbai, and Jammu & & Kashmir.
What is driving the demand for these items, after a switch from standard kirana stores to contemporary retail outlets and e-commerce platforms?Globalization and awareness of
health benefits of nuts and dry fruits might be a number of aspects driving sales. Particularly after COVID-19, consumers associate nuts and dry fruits with great health. Likewise, the growth is also gotten in touch with increasing earnings levels. Having stated that, India is still at the suggestion of the iceberg. The per capita usage of nuts and dry fruits is still extremely low as compared to the United States and other industrialized markets. What would be your strategy going forward?While the market is still extremely fragmented, we claim to be the biggest player in the market. If
one takes a look at numbers, we have around 4%market share. By price quotes, the market is pegged at Rs 20,000 crore and we are nearing around Rs 1,000 crore. We plan to open eight more manufacturing units by 2024, each with a capability of 10,000 metric tonnes. We likewise intend to have a total of 25 company-owned stores and 50 franchise shops by the end of 2023. Do you have any tips on the policy front?The taxation in the market is extremely high. Walnuts are available at a 120%tariff and raisins are at a 105%
tariff. If something can be done on the tariff front,
it would help everyone. There should be more awareness on part of the authorities, particularly as these are healthy food products. It will assist broaden the classification. Released at Sat, 07 May 2022 15:22:55 +0000