With the restructuring of the brand being the center of any news related to CavinKare, Mr. Venkatesh Vijayaraghavan, the CEO of FMCG products, talked about the expected growth and plans for the company.
The company is currently planning for Rs. 5000 crore turnovers. This would be a result of expanding the sectors and markets they’re already in and joining markets that have scalable products. They’d also scale up in countries they already have units in like Bangladesh, Sri Lanka, and Nepal.
The company also wants to export to over 40 countries, gaining shares in other markets. CavinKare intends to be driven by technology and analytics and aggressively grow, especially in the animal hospital and bakery sectors. All of this is to ensure they gain strength before an initial public offering (IPO).
With regard to e-commerce, the company predicts that 25% of the revenue will be coming from e-commerce by 2030. The move into eCommerce would be aggressive. It would follow two business models – product-led model and retail segment. The company grows at the rate of 100% every year and e-commerce would be the way for the company to sell directly to consumers. This change brings with it new products that are exclusively e-commerce based and scaling in markets they already exist in.
The company has also recognized significant cost increases in three sectors – fuel, containers, and raw materials. Export container costs, especially to the USA and Australia have seen a 200% increase and on the other hand, import costs have seen a 5% to 7% raise and mostly came from China. Since almost 45% of the turnover comes from the sachet business where the prices are fairly fixed, the costs aren’t passed onto the customers. But the company also wants to go onto value engineering to hold onto some of the costs.
The company will focus aggressively on three sectors – the value-for-money segment, the small value segment, and the e-commerce segment. The focus will always remain on affordability to clients and premium and mass premium products.
CavinKare 2.0 has understood the business models of newer companies that have stood the test of the pandemic and reworked those models to future-proof CavinKare. This means building the strength of their existing products and markets while taking on the qualities of newer companies. This change is expected to bring around a growth rate of 2 to 3-fold.