### **Overview** Foods & Inns Limited (F&I) is a leading Indian agro-processing company with over 50 years of experience in food manufacturing, processing, and export. The company has evolved from a single fruit canning unit into a diversified, vertically integrated food processor operating across **five core verticals**: 1. **Fruits & Vegetable Pulping** 2. **Frozen Foods** 3. **Spray Dried Powders** 4. **Spices & Masala** 5. **Tetra Recart RTE/RTC (Ready-to-Eat/Ready-to-Cook)** With a strong global footprint across more than **50 countries**, F&I serves Fortune 500 clients such as **Coca-Cola, PepsiCo, Unilever, Symrise, and Dohler**, while also expanding its **own branded B2C offerings** for retail consumers. --- ### **Key Recent Developments (Nov 2025)** #### **1. Brand Launch: 'Madhu' for Domestic & Export Markets** - In November 2025, F&I officially launched its **'Madhu' brand** for domestic and international markets. - Products are available in **canned and Tetra Recart packaging**, focusing on convenience, shelf-stable nutrition, and sustainability. - Primarily launched in retail and online channels, the brand is positioned for both **household and HORECA use**. - Initial traction includes export shipments to **Finland, Russia, and Germany**. #### **2. Focus on Tomato Pulp – High-Potential Growth Segment** - Identified **tomato pulp** as a major underpenetrated opportunity, with current global market size at **₹36,000 Cr (4.62 Mn MT)**. - F&I holds **~0.2% global share** (₹48 Cr FY25 sales) but sees **strong market traction** and plans to **double its processing capacity**. - New processing plant in **Gonde, Nashik** commissioned and running at full capacity since December 2024. #### **3. Expanded Frozen Food Capabilities** - F&I produces a wide range of **premium IQF (Individually Quick Frozen) fruits, vegetables, flatbreads, and snacks** using contract-grown, pesticide-compliant ingredients. - Shelf life of ~24 months, making them ideal substitutes for fresh produce in **HORECA and retail**. - Launched **'GreenTop'** as its own domestic frozen food brand with growing traction in modern trade. - Commissioned a **new advanced cold room at the Nashik plant** to enhance frozen food logistics and storage. #### **4. Pectin Production – Vertical Integration & Circular Economy** - Established a **pectin manufacturing facility in Chittoor, Andhra Pradesh**, leveraging mango pulping waste (skins and kernels). - Lab-tested pectin has been approved by major **MNCs and Indian companies**, validating commercial readiness. - India imports **95% of its pectin needs** (~2,500 MT/year), creating a significant **import substitution opportunity**. - Joint venture **Beyond Mango Private Limited** set up to commercialize pectin, oils, and butters from fruit waste. #### **5. Strategic Expansion in Spray Dried Powders** - Core B2B business converting liquid fruit/vegetable extracts into powders with **~24-month shelf life** and room-temperature storage. - Current capacity: **1,100 MTPA**; operating at full utilization due to rising global demand. - Europe’s energy crisis is redirecting procurement to Asian suppliers, benefiting F&I. - Producing specialty powders like **honey powder, cheese powder, and natural colors** for bakery, confectionery, and nutraceutical sectors. - Plans to expand capacity further to meet growing demand. #### **6. Kusum Spices – Branding & Market Expansion** - Acquired **Kusum Spices in FY19**, leveraging its 50+ year legacy to enter India’s branded spices market. - Owns **FNI Spices Private Limited** (formerly Kusum Spices) and markets **'Kusum Masala'**, with over **70 SKUs** in ground, blended, and whole spices. - Exports to **12 countries**, including the US, UK, UAE, and Oman. - Revenue from spices segment: **~₹21 Cr (FY25)** with potential to scale to **₹1,000 Cr over 10–15 years**. --- ### **Financial & Operational Highlights (2025)** | **Segment** | **Revenue (FY25)** | **Global Share** | |------------|--------------------|------------------| | **Fruits & Vegetable Pulping** | ₹815 Cr | Mango: 15% | | - Mango Pulp | ₹735 Cr | (₹5,250 Cr market) | | - Tomato Pulp | ₹48 Cr | (0.2% of ₹36,000 Cr market) | | - Guava Pulp | ₹25 Cr | (1% of ~₹2,250 Cr market) | | **Frozen Foods** | ₹68 Cr | Growing at ~35% YoY | | **Spray Dried Powders** | ₹21 Cr | Capacity: 1,100 MTPA | | **Spices & Masala** | ₹21 Cr | Kusum Masala revenue | | **Tetra Recart RTE/RTC** | ₹1 Cr | Early growth phase | - **Total Revenue (Est)**: ~₹925 Crore in FY25 - **Projected Revenue by FY27**: ₹1,700–₹1,800 Crores (subject to raw material price trends, with cost pass-through model) --- ### **Geographic Reach & Market Expansion** #### **Exports** - **50+ countries**, including the US, UK, Europe, Japan, Middle East, Canada, Australia, and Russia. - Key growth engines: - **Tetra Recart exports**: Finland, Russia, Germany, Canada - **Spray-dried powders**: Benefiting from Europe’s shift to Asia - **Banana puree**: Exploring supply to Russia due to geopolitical trade shifts #### **Domestic Market** - Distribution via **general trade, modern retail, foodservice (HORECA), and online platforms**. - Focused brands in India: - **Madhu** (pulp & canned fruits/vegetables) - **GreenTop** (frozen foods, RTE/RTC) - **Kusum** (spices) - Market expansion in **Western and Northern India** for Kusum; GreenTop launched in **Gulf region**. --- ### **Sustainability & ESG Leadership** F&I is a **preferred supplier** for multinational clients due to its proactive ESG compliance: - Reports via **CDP (Climate Disclosure Project)** and **BRSR (Business Responsibility and Sustainability Report)** - **Circular economy initiatives**: - Converting 50% of mango waste into value-added products (pectin, oils, briquettes) - Piloting **biomass fuel from fruit waste** and **methane recovery** from effluent - **Solar power installation** targeted across all units in 3 years - Focus on **sustainable packaging**: Tetra Recart is **25% more efficient** than metal/glass and emits **lower CO₂** - **Direct farmer sourcing programs** with contract farming and pesticide-compliant certifications --- ### **Strategic Capabilities & Differentiation** | **Strength** | **Description** | |-------------|-----------------| | **Vertical Integration** | Strong farmer relationships, multi-generational partnerships | | **Technology Leadership** | One of only **10 global licensees** for **Tetra Recart**; uses **IQF, PLC, and spray drying** | | **Customer Moat** | Long-term contracts with Coca-Cola, PepsiCo, and other FMCG giants | | **Diversified Portfolio** | Reduced reliance on mango; expanding into tomato, guava, powders, spices, and RTE | | **Government Support** | ₹25.08 Cr received under **PLI Scheme**; eligible for up to ₹148 Cr in performance-linked incentives (FY23–FY28) | --- ### **Challenges** - **Seasonality & Working Capital Pressure**: High due to seasonal harvests (mango, guava, tomato). - **Raw Material Volatility**: Prices of Totapuri mango doubled in FY25 due to supply crunch. - **Brand Adoption Lag**: Large brand clients require **6–24 months of shelf-life testing** before commercial orders. - **Competition**: Increasing interest from players like Reliance, Tata, and Adani in food processing. ---