MTR Foods, known for instant food mixes, is all set to develop its own online store. Until now, it used to sell its products on online platforms of BigBasket and Amazon.
According to the CEO, Sanjay Sharma the tie up with BigBasket yields monthly orders worth Rs. 8-10 lakh.
Sharma stated, an investment of around Rs 50 lakh is being made in the initiative. The store is expected to be functional by the third quarter of this year.
As per Sharma, the decision was driven by the wide portfolio of MTR’s products. “We have around 300 products and at least a third of them are available in most retail stores. We feel it is time to unlock their potential.” Adding further, he confirmed, “the company aims to generate 10% of its revenue from sales online”.
The company’s ‘Namma MTR’ stores will be used as stocking locations from which the online orders will be processed. Sharma said. The online service will be first tested in Bengaluru. Later, it would be expanded to other metros and tier II cities reports TOI.
MTR’s products are available in nearly 180,000 stores across India, said Sharma. But 110,000 of those stores are in Karnataka, showing that the brand is still very dependent on the state.
MTR Foods was acquired by Norwegian conglomerate- Orkla in early 2007 for $80 million (Rs 350 crore then). Sharma said that new initiatives by the company, such as increasing the brand’s visibility, helped to more than treble the company’s turnover — from Rs 160 crore at the time of acquisition in 2006-07, to nearly Rs 600 crore in 2014-15. Orkla has, over the years, invested nearly Rs 150 crore in MTR for its expansion.