Prataap Snacks Eyes 22% Revenue Growth In FY19
The chips maker plans to focus on Uttar Pradesh, Punjab and southern states next to strengthen its pan-India presence.
Prataap Snacks Ltd. plans to clock 20-22 percent growth in revenue in the current year, aided by cross-selling through their recent stake acquisition in Avadh Snacks and a positive macro environment.
“We are trying to launch a few Yellow Diamond products through channels of Avadh Snacks in Gujarat,” its Managing Director and Chief Executive Officer Amit Kumat told BloombergQuint, adding that the company is also expanding its sweet snacks capacity by adding one new production line each for cookies and cupcakes.
“The government’s cut in edible oil import duty and a cool-off in crude oil prices will improve margin,” he said. The import duty on crude palm oil, originating from Malaysia, Indonesia and other members of Association of South East Asian Nations was cut to 40 percent from 44 percent.
Ambit Capital, in a research report, said that Prataap Snacks will achieve an operating margin of 10 percent by 2022-23. The Indore-based snack maker, it said, will gain market share as consumers shift from unorganised players who currently occupy around 60 percent of the packaged snacks category in the country..
Prataap Snacks had acquired 80 percent in Gujarat-based Avadh Snacks for Rs 148 crore in August last year. The acquisition was to offset Prataap Snack’s weak presence in Gujarat, Kumat said, adding that the company plans to focus on Uttar Pradesh, Punjab and southern states next to strengthen its pan-India presence.