DFM Foods, known for its popular salty snacks brands Crax and Natkhat, has expanded its product range beyond INR 5 packs for the first time. Vipul Prakash, the chief executive of DFM Foods, mentioned that the company is now emphasizing larger pack sizes priced at INR 10 and INR 20 to align with changing consumer preferences.
He said, “This shift towards premiumization is leading us to explore opportunities in larger retail outlets and fast delivery channels.”
Companies in the packaged consumer goods sector are progressively focusing on premiumizing their product portfolios to meet the growing demand in urban areas, driven by both quick-commerce and modern trade channels. Additionally, larger pack sizes are proving to be more profitable due to the rising costs associated with packaging.
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Prakash stated that DFM has ramped up its emphasis on operational efficiencies and broadened the reach of its snacking brands, extending beyond the North into recent ventures in the East. Plans are underway to extend this expansion to other territories such as the West and South.
A year ago, DFM Foods withdrew from the stock exchanges, sparking speculation that Advent International, the private equity firm with a stake of over 96% in the snack maker, might be considering an exit from the company.
Regarding the speculation of a possible divestment by Advent, Prakash emphasized that his sole focus is on growing the company’s top and bottom lines. He stated, “We are developing a business that will be highly appealing to strategic buyers, perhaps within the next two to three years.”
Prakash, who previously held leadership roles at MakeMyTrip and PepsiCo, emphasized that the past year has seen increased focus on innovation and the introduction of new products.
According to business intelligence platform Tofler, DFM Foods reported revenues of over INR 500 crore for the financial year ending March 31, 2023.
Prakash emphasized that in FY25, DFM will prioritize innovation and distribution to bolster both its top and bottom lines.
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