Allana Consumer Products eyes Rs 500-600 crore investment, targets Rs 4,000 crore revenue

Allana Consumer Products (ACPL) is lining up Rs 500-600 crore of capital investment over the next 2-3 years as newly appointed MD Manish Bandlish charts an aggressive expansion across pet food, bakery, coffee, and fruits and vegetables, while pushing the business towards consumer-facing brands.

ACPL, which currently generates around Rs 2,300 crore in revenue, is targeting Rs 4,000 crore over the next 2-3 years through a combination of organic expansion and acquisitions.

“The agenda for me is to drive all the categories we have in India. Depending on the business model and the business case, I envisage anywhere between Rs 500-600 crore of overall capital investment in the country over the next 2-3 years,” Bandlish told ETRetail.

The investment plan includes a proposed Rs 300-400 crore greenfield project for value-added coffee, alongside Rs 50-100 crore investment in bakery. ACPL is also evaluating acquisitions in fruits and vegetables.

“We are number two in exports of green coffee from India, but we want to move into value-added products. Freeze-dried coffee is one area we are exploring, and that will require a greenfield investment of Rs 300-400 crore,” Bandlish said.

The company currently operates three coffee plants in South India, while its bakery facility near Mumbai has 20,000-tonne capacity and is operating at 60-70 per cent utilisation.

“We have enough space in the bakery facility and will most likely expand there with new categories. Chocolate is another category that we could add to the division,” he said.

Pet food is emerging as another major growth engine. The business currently contributes around Rs 180 crore, with ACPL targeting Rs 250-300 crore in 2-3 years.

“We have one of the largest pet food manufacturing plants in India near Hyderabad. We launched our domestic brands Bowlers and Purrfeto over the last 1.5-2 years, and now we want to take these brands forward with larger, more aspirational product lines,” Bandlish said.

ACPL is also stepping up its consumer play in frozen foods. Its Home Fresh brand is being revived in India, with a launch planned by mid-September across frozen food categories including vegetables and other convenience products.

“Frozen is another category booming in India. The younger generation is very conducive to processed and convenience foods,” Bandlish said.

The company is also developing synergies across its businesses, including pet food, bakery and coffee, through shared R&D and product development.

“We are bringing the R&D teams together to develop products that can take learnings from one division into another. We are already working on products such as cakes, gelato and yogurts,” he said.

Currently, around one-third of ACPL's revenue comes from India and two-thirds from exports. The company wants to increase the domestic contribution to 40 per cent over the next 2-3 years before new capacity potentially pushes exports higher again.

“We are very strong in sourcing and manufacturing. The next step is becoming more consumer-centric and developing brands that deliver value directly to consumers,” Bandlish said.

Alongside Home Fresh, ACPL plans to launch value-added coffee products, high-protein ranges, new pet food products and bakery categories in India over the next 3-6 months, creating a broader consumer-facing portfolio.