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Indian eatery firm embraces WTO norms in global push
BANGALORE (August 10 2002) : MTR Foods Ltd, once an old-world eatery in India's technology capital, said on Friday it was two steps closer to winning new export markets for its instant foods and snacks.
MTR, whose 78-year-old Bangalore eatery attracts die-hard regulars and tourists in throngs, placed a 28-percent stake with investment banker J.P. Morgan this year as it strives to achieve its dream of becoming the "McDonald's of Indian food".
Company officials told a news conference that the firm, growing at around 50 percent a year in sales since 1999, had received an ISO 9002 certification, as well as the British Standards Institution's stringent HACCP stamp.
"We will be driving exports much more aggressively," Chief Executive Officer Jayaraman Suresh said.
MTR's chairman Sadananda Maiya, who combined an engineering degree with his family-honed skills in cooking to build an instant foods kingdom, plucked Suresh this year from Hindustan Lever Ltd, where he was head of beverage sales.
Suresh told Reuters exports, which totalled eight percent of its 870 million rupees ($17.9 million) sales in the year to March 2002, were expected to get a healthy boost from the next January-March quarter on the strength of the ISO and HACCP certifications.
The certifications conform to the World Trade Organisation's recommendations on food products.
A company statement said India's joining the WTO's sanitary and phytosanitary agreement requires the adoption of standards, which would ease export procedures.
SALES JUMP: Domestic sales have been steadily rising for MTR Foods, in which Singapore-based Magnus group also has a 14 percent stake.
Suresh said sales were expected to touch 1.25 billion rupees in the current financial year, having grown from 430 million rupees in 1999/2000.
"We want to make this a 5.0 billion rupee company over a period of three years," he said.
J.P. Morgan's $4.0 million investment will be used to help MTR pare debt, for expansion and to boost marketing, which has largely relied in the past on its reputation built over the years.
MTR's roots as a company lie in India's Emergency rule imposed in 1975, under which eateries were subject to price controls.
On the view that price controls would compromise on quality, MTR, short for Mavalli Tiffin Rooms, closed its eatery during the 19-month Emergency rule and started making instant food mixes to keep its workers employed.
The business has since grown to a range that includes snacks, pickles, ice creams and ready-to-eat vegetables.
Its rivals in a largely fragmented market vary according to segments but include Hindustan Lever and Nestle.
Company officials said MTR had an eight percent share in the relevant Indian food segment, and planned to fan out across the nation in a growth plan.
MTR plans to reach retail outlets in 814 Indian towns this year, up from the current 503.
Frozen versions of Indian dishes like "dosas" (rice pancake) are expected to open a whole new market.
Maiya's vision is to open restaurant franchises around his frozen Indian foods, which could lead to a standardised global Indian fast food chain.
Business Recorder
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Pakissan.com;
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