Alchemist Food plans to expand manufacturing capacity

Date: 13/10/2011

Alchemist Food ProcessingAlchemist Foods Ltd – a fully owned subsidiary of the Alchemist Group – plans to scale up its manufacturing capacity by way of both brownfield and greenfield expansion to meet the growing demand for processed and packaged chicken in the country.

The company currently has an integrated poultry and manufacturing unit in Barmajra in Chandigarh. The plant has a capacity of processing 24,000 birds a day and the plan was to scale it up to 50,000 birds a day over the next eight months, said Mr A.K. Srikanth, Chief Operating Officer, Alchemist Foods.

The per capita consumption of chicken in the country – which stands at 2.5 kg per person per year – was set to grow to 5 kg per person per year by 2015. “Even if we consider a 10 per cent growth rate then we will have to add capacity to meet the demand,” he said while speaking on the sidelines of a press meet to announce the company's first retail outlet in Kolkata under its flagship brand Republic of China (ROC).

Alchemist Foods was also on the lookout for a suitable location for its greenfield expansion. “Having a plant in the eastern region will make sense as we want to beef up our presence in the region,” he said. He, however, refused to divulge further details about the size of the manufacturing facility and the investment it would entail.

The company – which currently has 50 stores in the northern region – plans to expand into the eastern region by setting up exclusive ROC outlets. “We plan to have 50 stores in West Bengal (25 in Kolkata alone) by 2012,” he said. The company also plans to set up stores in cities such as Shillong, Aizwal, Imphal, Dimapur and Agartala.

(This article was published in the Business Line of The Hindu print edition dated October 14, 2011)