Yellow Diamond potato chips maker Prataap Snacks is looking to increase its market share from the current 4-5 percent to 10 percent in the next five years as it expects a growth of 15-20 percent during the period, the firm’s Managing Director Amit Kumat said on Friday, November 18.

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The Madhya Pradesh-based fast-moving consumer goods (FMCG) company wants its namkeen segment to contribute to a major share of growth and account for 25 percent of its sales, while its current share is 12-13 percent, he said.

“We are in a very strong market…we have recently gone into North India and we hope that major growth should come from UP, Punjab, and Delhi,” he told CNBC-TV18.

According to Prataap Snacks’ MD, demand is back above the pre-COVID levels, even as it was muted in October, and therefore quarterly revenue run rate can hit Rs 500 crore in the next 2-3 quarters.

Kumat noted that costs have come down considerably and that’s why the firm is aiming for double-digit earnings before interest, taxes, depreciation, and amortization (EBITDA) margin for the next two to three quarters.

“The margin side is more dependent on commodity pricing, and that has definitely cooled off. With all the changes we have done in the general margin and the manufacturing process, we should be able to get to double double-digit EBITDA margin with more than 15 percent growth,” he said. He added that palm oil has come down by more than 30 percent and packaging prices by more than 15 percent.

Prataap Snacks is putting up a facility in Jammu with an investment of more than Rs 100 crore, he said, adding that firm that the firm has committed Rs 105 crore to PLI scheme investment, and nearly 60 percent has already been done. The Jammu plant is expected to lead the firm to an additional capacity of Rs 350 crore on a yearly basis, he said.

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(Edited by : Shoma Bhattacharjee)