MTR Foods to invest $30m to boost production capacity in India

India-based MTR Foods is planning to invest Rs2bn ($30m) in the next four to five years to increase the production capacity at its Bengaluru facility to 72,000t.

This investment aims to achieve a turnover of Rs20bn ($300m) by 2020.

MTR Foods currently has a 42,000t production capability and a turnover of Rs7bn ($105m).

MTR CEO Sanjay Sharma was quoted by Livemint as saying: "If we need to continue to grow at this robust pace, we will need additional capacity and additional investments."

The firm manufactures 140 food products, which are sold in more than 200,000 outlets across the country, as well as 30 stores in overseas markets.

MTR founder Sadananda Maiya divested his 40% stake to Orkla for Rs3.5bn ($52.5m), following which he established Maiyas Beverages and Foods.

After acquiring the majority stake in MTR Foods, Orkla Foods has undertaken several changes in the company’s processes.

Orkla Foods executive vice-president and CEO Atle Vidar was quoted by The New Indian Express as saying: "We have been able to increase productivity by some 30%. At the same time, we have brought down costs by 10%."

Earlier this month, the firm launched its online platform for customers in Bengaluru with an investment of Rs5m.