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Updated on: Monday, August 30, 2021, 10:31 PM IST

CavinKare announces business restructuring; eyes revenue of Rs 5,000 cr

PTI
The Chennai-based CavinKare has presence in segments such as dairy, salons and hospitals for animals/ Representational image | Photo credit: cavinkare.com

The Chennai-based CavinKare has presence in segments such as dairy, salons and hospitals for animals/ Representational image | Photo credit: cavinkare.com

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Fast moving consumer goods (FMCG) company CavinKare Ltd on Monday announced restructuring of its business under its 2.0 initiative to garner a revenue of Rs 5,000 crore in the next three years, according to a top official of the firm.

The Chennai-based company has presence in segments such as dairy, salons and hospitals for animals. "We'd like to bring in a new structure, a high growth-oriented structure which defines CavinKare 2.0. It has to bring in innovation, e-commerce by combining the synergies across multiple divisons," chairman of the firm C K Ranganathan told reporters here.

To a query on whether the company was looking at an initial public offering (IPO) through the restructuring, he said, "We're waiting for a clean run. We're not doing it (restructuring of business) for the IPO. We need to aggressively grow to the size (of Rs 5,000 crore revenue) if we are going to (capital) the market." Asked on investment plan, Ranganathan said it would be around Rs 800-Rs 900 crore. "It will be in factories, distribution network, expansion, digital infrastructure. In salons, we will be investing close to Rs 100 crore", he said.

"Investment in dairy business will be around Rs 400 crore. We'll expand our hospitals. Third facility (of SANCHU hospitals) will be rolled out (soon) and we're planning to open 100 hospitals in the next three years. This will call for investments," he said.

While the targeted revenue was Rs 5,000 crore in the next three years, he said the company made Rs 1,700 crore last year. He said the thrust would be on e-commerce and innovation.

Director of the company Venkatesh Vijayaraghavan would also be the chief executive officer of the FMCG vertical and Amudhavalli Ranganathan is appointed as director and CEO (new initiatives) and Manuranjith Ranganathan would be director-CEO (retail).

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Published on: Monday, August 30, 2021, 10:31 PM IST
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