Gurgaon-based Dan Turk Farms & Services Pvt Ltd, which supplies turkey meat products to hotels in India, is going slow on its B2C plans for the domestic market and has instead decided to focus on the overseas market.
The firm will be selling its processed meat products under its Dancing Turkey banner to stores in the US and South East Asia.
“We have tied up with 45 supermarkets in US which are owned by the Indian diaspora. These are mainly 10,000 sq ft stores adjacent to petrol pumps. We will be having a kiosk in each and every store,” said Sameer Mathur, managing director and CEO of Dan Turk Farms & Services. Most of these stores also have dine-in facilities, which the company says will help sell its ready-to-eat products.
The company has also tied up with two mid-sized distributors in Taiwan and South Korea to distribute its products. It has been also trying to get a foothold in the Gulf region. ‘We are still entertaining queries from UAE, Oman and Kuwait but haven’t found a suitable channel partner for these countries,” Mathur said.
The Agricultural and Processed Food Products Export Development Authority (APEDA) puts India’s meat exports in 2014-15 at more than Rs 30,000 crore. Mathur estimates that turkey meat exports would be worth nearly Rs 2000 crore.
Dan Turk Farms & Services was earlier planning to set up around 10 outlets in Delhi-NCR, Mumbai, Chandigarh and Bangalore. However, it has now decided to go slow on its plans due to the high real estate cost in the metros.
“In January we are coming up with five outlets in Delhi-NCR. The rest five are likely to come up in Kolkata later,” said Mathur. He declined to say anything on its plans for Mumbai, Chandigarh and Bangalore.
Dan Turk Farms & Services, which was founded in 2013, supplies meat products to hotel chains such as Oberoi, Taj and Hyatt.
However, 50% of the stores will be company-owned in contrast to the franchise route considered earlier. The store size has been reduced to 100-150 sq ft from the earlier 300-400 sq ft against the original investment plan of Rs 15-20 lakh per outlet. “We are starting our home delivery service from next week and have tied up with two leading on-demand delivery service companies to cater to our end-users,” he said.
The company claims that sales have gone up from Rs 4-5 lakh per month to Rs 6-7 lakh per month. It had clocked Rs 50 lakh revenue in 2014-15 and is targeting Rs 1.5 crore in 2015-16.
Typically, 1 kg of roasted turkey can cost more than Rs 1700 in Delhi.
In 2013, the firm was looking to raise Rs 150-200 crore for expansion and setting up an integrated facility in Delhi-NCR. However, it failed to attract investors. Mathur said the company will tap into high net-worth individuals and angel investors to raise a much lower amount this time.