MTR aims government's approval for single-brand retail

To augment its business, the renowned food company, MTR is waiting for government’s approval to step into single-brand retail segment. The company which is the subsidiary of Norwegian association Orkla is a 92-year old firm which deals in providing high quality spices and ready to eat vegetarian food to its customers. The Bangalore based firm is now looking to scale up its production to 72,000 tons by 2020.

Recently, the government has amended the Foreign Direct Investment Policy (FDI) and as per the reformed norm, a single entity can opt for wholesale or cash-and-carry trade, as well as single brand retail if it fulfills FDI regulations for both the business. Any manufacturer in India would not need government approval to sell through wholesale, retail or ecommerce, as per the revised norms.

Commenting on the company’s move, Sanjay Sharma, CEO, MTR Foods said that company’s application is more of clarificatory nature since the new FDI norms state that if MTR is manufacturing in India it is free to sell through single-brand retail. Pickle and papad are the two items that company outsource locally, rest is all manufactured by MTR.”

Mavalli Tiffin Rooms (MTR) was acquired by Norway's food major Orkla in 2007 for US $80 million. Orkla has invested Rs 230 crore to triple the company's manufacturing capacity to 45,000 tons as of 2015. Since our owner is now a foreign entity, we felt it was better to apply for the single-brand licence as the rules are now more clearly spelt out, Sharma stated further.