Freshtrop Fruits Ltd

Interview of Ms Dipti Motiani on Indian Retailer

Key excerpts

  • Since the last few months of our launch, we have grown 100 per cent m-o-m and going forward we would like to explore more categories.

  • While we are presently available in only 3 cities, by the end of the year we will be available in Bengaluru, Hyderabad and Delhi.

  • We will be focusing on increasing our footprint through five channels- modern trade, all the stores that can provide us 2-4 degree cold chain facility, ecommerce marketplace, restaurants and cafes, schools and corporate firms and finally on our own website through subscription model.

  • What are your immediate targets?
    We want to be present in all major cities and by the start of next year we plan to be present in at least two or three cities more. Also, we would like to explore more categories in cold extracts apart from fruits and vegetables juices and we will work on that. We want to be a Rs 100 crore company in the next five years.
    (I guess she is talking abt the juices business targeting 100 cr turnover since Freshtrop is already a 100cr + at the company level)

My take,

  • Recent wearing of rupee vis a vis Euro should further help margins in next year

  • In FY 19, Company will enjoy a tax rate of 25% since it’s turnover is less than 250 cr.

  • Based on info received, they seem to have reduced converter business with domestic FMCGs.( not sure abt this info) Should be positive as this business was loss making.

  • If Juices business even reaches half of the managements target in 5 years, it will be a superb achievement. India’s juices market is estimated to be ~ 3000 cr and growing in mid teens. Paper Boat’s revenue for FY18 was 118 cr but net losses were 44cr, signifying the kind of costs involved im setting up a juices brand. As per some news articles, paper boat is valued at 1000cr +. That is the long term opportunity available in this business.

  • One key concern is that management still seems to be family dominated, and perhaps lacking experience in B2C marketing, one of the most crucial part of the juices journey.