New Delhi: WayCool Foods and Products, a prominent player in the Indian food and agri-tech industry, has spun off three of its leading brands – Kitchenji, Madhuram, and Freshey’s – into a wholly-owned subsidiary called WayCool BrandsNext Private Ltd. The move is aimed at driving growth and revenue for the brands, and the company is set to launch new products, including millet-based food items and various rice varieties. WayCool Foods expects to double the revenue generated by these brands, from Rs 400 crore last year to Rs 800 crore this year.
Karthik Jayaraman, Managing Director of WayCool Foods, emphasized that hiving off these brands is not intended to lead to an initial public offering (IPO). Instead, the focus is on achieving growth by dedicating specific resources and manpower to the brands. The company plans to expand its reach by targeting all the south Indian towns with a population of about 30,000 people.
WayCool BrandsNext’s CEO, BP Ravindran, explained that the company will soon launch a health mix powder with higher millet content, as well as a range of millet-based food products. The COVID-19 pandemic has increased demand for healthier food options, and WayCool Foods plans to tap into this trend by introducing various rice varieties like red/brown and value-added dairy products.
The demand for white-labeled products has also been on the rise, according to Jayaraman, who added that WayCool Foods is serving the needs of companies that deliver groceries to homes. The company sources its food products directly from farmers or farmer producer organizations and supplies them to retail outlets and bulk buyers in the southern markets and Maharashtra.
WayCool Foods recently signed a Memorandum of Understanding (MoU) with the Central Warehousing Corporation (CWC) to improve the distribution of its agri-input portfolio. The partnership aims to enhance supply chain efficiency and reduce wastage. WayCool Foods will use six state-of-the-art facilities located in South India, along with additional facilities to be set up in key locations. CWC will provide dedicated warehousing and incidental services, including pest control, handling and transportation, inventory management, and others.
In conclusion, WayCool Foods and Products’ decision to hive off its leading brands into a wholly-owned subsidiary is aimed at driving growth and revenue for these brands by dedicating specific resources and manpower. The company plans to launch new products, including millet-based food items and various rice varieties, to tap into the growing demand for healthier food options post-COVID. WayCool Foods also aims to improve the distribution of its agri-input portfolio by partnering with the Central Warehousing Corporation (CWC).
