Australian F&B company to enter India

Australia’s Flavor and Life Food and Beverages (FAL), maker of the Coco Joy, Juiced Up and Aqua Hero beverages, has announced it would set up its first Indian factory within three years, which will serve several countries.

“We’ll start with Coco Joy coconut water and the entire Coco Joy range will be introduced in India over next four to six months. Eventually, we’ll bring our entire portfolio of brands,” said Tim Xenos, chief executive.

FAL is likely to spend $9–10 million in India to set up its distribution and retail presence, said Xenos. “The manufacturing facility will require more than $5 million,” he said.

The company hopes to have an initial production capacity of 12,000–15,000 units per hour and may double it over a period of time. It will require about five acres for a production unit.

“India will be the hub for manufacturing. Besides meeting the captive demand, we would export to the US, Australia, neighbouring countries like Bangladesh and Sri Lanka, and nations that have free trade agreements with India,” Xenos said.

At present, FAL has three manufacturing units across Malaysia and Saudi Arabia. The maker of low-calorie, low-sugar and fat-free food and beverages sells in Australia, New Zealand, Malaysia, the US and China. FAL Food and Beverages is a part of FAL Holdings, which has a presence in 17 countries across West Asia, Australia, the US, Europe and China.

“India is the most important market for us. Though we are entering India today, we see revenue from India reaching $100 million in a few years,” said Xenos.

The firm will operate through a fully owned subsidiary and set up its own distribution network. FAL Food and Beverages hopes to close the next fiscal year with $100 million sales, from $35 million at present.

Source: Livemint.