Amit Kumat, MD & CEO, Prataap Snacks Ltd., says, the company has plans to take the products of Awadh out of Gujarat to Madhya Pradesh, Maharashtra, Uttar Pradesh and Rajasthan during a candid chat with Swati Khandelwal, Zee Business. He added Awadh will give a very good growth momentum in the coming time. Edited Excerpts: 

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Q: The numbers have been weak in this quarter. Please tell us about the reason behind the fall. Also, tell us about the current demand and what is the outlook for the business?

A: If you see after the COVID, the first quarter was very bad, we stood at -40 and in the second quarter it came to -15 and then we came at -6. In this quarter, I expect that we will be back on the growth trajectory.

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As far as the margin is concerned, its main region is Palmolein oil, which is basically at its historic high. Its average price used to be around Rs 70-75 but today it is at Rs 110, which has had a huge impact on the margin. Meanwhile, the growth momentum is back, and the growth is likely to be seen from this quarter. The next quarter is looking very good. 

Q: In your release, you have talked about the restructuring of the distribution network. What kind of strategy do you have on the front? Also, you have taken up the stakes in Awadh Snacks. Tell us about the synergies that you are expecting from it and what additional market share you can get through this acquisition?

A: First of all, let's talk about the restructuring of the distribution channel then whatever channel we have, which involves both the super stockists and the distributors. Due to this, a lot of costs is involved in between because the goods go to one place first and then moves to the distributor. So, the company is trying its best to take the products directly to the distributors and save the margin. For the purpose, we are restructuring our channel all over India. As far as Awadh is concerned, it is back on the growth trajectory and has shown a growth of 5% in the last quarter.

Going forward, it seems that good growth momentum will be seen in Awadh. We also have plans to take products of Awadh out of Gujarat to Madhya Pradesh, Maharashtra, Uttar Pradesh and Rajasthan and for the purpose, we have also started a distribution drive. I think Awadh will provide a good growth momentum in the coming time.