Heritage eyes 1,000 cr from retail business

Heritage eyes 1,000 cr from retail business
Highlights

City-based Heritage Foods Ltd is targeting Rs 1,000 crore turnover from its retail business by FY19. The company which is also into dairy and several other businesses clocked Rs 495 crore turnover in retail last fiscal through its 105 operational Heritage Fresh stores and plans to reach Rs 600 crore mark this fiscal. It has also drawn plans to invest Rs 20 crore.

Hyderabad: City-based Heritage Foods Ltd is targeting Rs 1,000 crore turnover from its retail business by FY19. The company which is also into dairy and several other businesses clocked Rs 495 crore turnover in retail last fiscal through its 105 operational Heritage Fresh stores and plans to reach Rs 600 crore mark this fiscal. It has also drawn plans to invest Rs 20 crore every year to expand stores across cities such as Bengaluru, Chennai and Hyderabad.

"We would like to add 75,000-100,000 sq ft of trading space per year for the next five years. We expect to cross Rs 1,000 crore turnover by FY19," Dharmendar Matai, COO (Retail and Bakery), Heritage Foods, said.

The company is also exploring multiple options to turn retail operations profitable in the next two years with the help of a new set of investors and strategic partners, Matai said. The company intends to expand to new cities after consolidating its presence in the southern markets and turning in retail operations profitable.

"The retail division is expected to be EBITDA positive from the current financial year. We have robust supply chain and distribution network in three cities where we operate," he said.

After having succeeded in establishing itself with bakery business in own retail stores and B2B space, including supplies to KFC, Taj Hotels, Novotel, Mariott, Walmart, Pizza Hut, etc, Heritage Foods is also considering going online with an e-commerce pilot project in the food and grocery segment in Hyderabad.

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