Start-up bites into organised meat retail business

With an investment of Rs 10 crore, the company has set up three stores in Chennai, to be launched on Sept 25, and intends to scale up by the year end. Sushil Kanugolu, MD and CEO, Fipola, (pictured), said, “Meat and seafood is a business worth anywhere between Rs 25,000 cr and Rs 30,000 cr, on a per annum basis. This comes predominantly from wet markets and butcher shops. Our stores are on ECR, OMR and in Anna Nagar. We will open seven more outlets in the next six months in areas like Nungambakkam, Velachery and Mogappair.”

The company sources lamb and mutton products from Madurai. Chicken procurement is from Namakkal, while Chittoor is a tentative sourcing location. Its parent company has a strong foothold in seafood, sourced from across coastal belts in India.

The market segment pan India is worth Rs 2,00,000 cr. However, only 18 per cent of proteins in the Indian diet comes from meats. So, it’s is an industry that has potential for growth. However, Sushil believes, a big reason for big brands not getting it right is the reliance on an exclusive singular product range – like chicken shops. “A buyer today would like a gamut of products apart from poultry, including mutton and seafood. We want to transform the buying experience for meats in India, by offering raw produce at the best competitive rates. We also address an upper-middle income segment by introducing products like delicatessen, cold cuts, gourmet, pickles and spreads. We are shortly launching a native app for ordering meats,” he said.