iD Fresh Food, a company specializing in ready-to-cook packaged meals, is set to invest ₹100 crore over the next two years with the aim of doubling its manufacturing capacity. This expansion will include the establishment of new facilities in Chennai, Andhra Pradesh, Kolkata, and Saudi Arabia, as shared by PC Musthafa, the global CEO of iD Fresh Food, during a recent interview with ETRetail.
At present, the brand operates manufacturing sites in major cities such as Bangalore, Mumbai, Hyderabad, Delhi, and Dubai, encompassing a total area exceeding 80,000 square feet. As part of its growth strategy, iD Fresh Food plans to expand its Hyderabad facility to 45,000 square feet.
The new manufacturing units will vary in size, with Andhra Pradesh and Kolkata facilities each covering 15,000 square feet, the Chennai unit spanning 25,000 square feet, and the Saudi facility measuring 4,000 square feet. Currently present in seven distinct product categories, iD Fresh Food aims to diversify its offerings by entering additional fresh categories and those with longer shelf lives.
The company currently offers 10 stock-keeping units (SKUs) and plans to launch 15 new SKUs by the end of the fiscal year. Following the successful introduction of its chutney category in Bengaluru, the company will now extend this product line to other cities. Additionally, iD Fresh Food is venturing into a new category focused on spices and is developing a new format for tender coconuts.
The brand has plans to release three varieties of spices, which will include two blended spice options and one pure spice, in the first week of October. The initial phase will focus on clean-label spices, while the second phase will see the introduction of wet spices. To support the spices category, iD Fresh Food plans to allocate a significant portion—60%—of its sales revenue to marketing and distribution during the first year.
Typically, the company invests around 14% of its sales on marketing; however, for this new venture, the estimated expenditure will be approximately ₹25 crore over two years, with the goal of achieving ₹50 crore in revenue from spices alone. By the end of this fiscal year, iD Fresh aims to distribute its spices to around 50,000 retail outlets, with plans to double that number within two and a half years.
The brand currently sells through 60,000 outlets and is targeting an increase to 75,000 outlets by the end of this fiscal year. E-commerce and quick commerce channels currently contribute 35% of iD Fresh’s revenue, while the remaining 65% comes from traditional grocery (GT) and modern trade (MT) channels. Looking ahead, expanding its presence in these traditional and modern trade sectors is a key focus for the company, as noted by Rajat Diwaker, CEO of iD Fresh Food.
Additionally, 8% of the company’s revenue is generated from B2B channels, with 26% from international markets. iD Fresh Food is currently active in nine countries outside of India, including the UAE, Saudi Arabia, Oman, Qatar, the US, Ireland, the UK, Bahrain, and Singapore. The company is also preparing to launch operations in Kuwait and introduce fresh products in the US, Singapore, and Saudi Arabia by the end of the current fiscal year.
Having achieved profitability last year, iD Fresh is optimistic about recording double-digit profit margins this year. The company reported revenue of ₹554 crore in the previous fiscal year and is targeting ₹700 crore for the current year. Despite falling short of last year’s goals due to a primary focus on profitability, the brand is looking to the future with ambitious plans. By 2027, iD Fresh aims to reach the milestone of ₹1,000 crore in revenue and is considering announcing an initial public offering (IPO).
iD Fresh Food specializes in ready-to-cook packaged meals, offering a diverse range of fresh products, including chutneys, spices, and more. With manufacturing facilities in India and abroad, the company focuses on quality and innovation. Committed to expanding its presence, iD Fresh aims to provide convenient, delicious options while maintaining a strong emphasis on profitability and sustainability.
