AB Foods to step up Indian expansion
Associated British Foods, the FTSE 100 foods manufacturer, was among the best performers of the day on Tuesday, a day after announcing plans to give its Indian operations a boost.
Associated British Foods, the FTSE 100 foods manufacturer, was among the best performers of the day on Tuesday, a day after announcing plans to give its Indian operations a boost.
The company - famous for its well-known bread brands such as Allinson, Kingsmill and Sunblest - was trading 2.4% higher, at 1,096p, by 14:46PM.
The firm gave details yesterday about its "Big India Project" to double headcount and capacity at AB Mauri India, the Indian arm of its bakers' yeast-manufacturing unit.
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Speaking to the Financial Chronicle, AB Mauri India's executive director Binu Varghese said: "The plan is to turn the Indian operations into a $100m company over the next five years. To reach there, we will double our yeast capacity from 2,000 tonnes per month to over 4,000 tonnes per month.
"We will also double our headcount, which at present is 600 and will improve our R&D facilities. The bakery capacity will, however, remain the same at 2,500 tonne per month."
"The parent company has mandated us to get as much as 8% of our revenue from new businesses. We have recently come up with non-dairy toppings for muffins, brownies etc and we are now working on fruit fillings, paratha improvers, ingredients for diabetic products and eggless food items," he said.
AB Foods, which also owns Primark as well other food businesses, announced on 8 November than full-year revenues rose 9% to £11.1bn, above estimates of £10.96bn. Underlying pre-profits were up 1% to £835m and basic earnings per share down 1% to 68.7p in the year to the middle of September.
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