Various reports also suggest that by 2030, the Indian annual household consumption is expected to triple, making India the fifth-largest consumer in the world. In that context, to capture more market opportunities, the Government of India aims to boost growth in the food processing sector by leveraging reforms such as 100 per cent foreign direct investment in the marketing of food products and various incentives at the central and state government level along with a strong focus on supply chain infrastructure. Recently, the government established 18 mega food parks and 134 cold chain projects to develop the food processing supply chain.

“We are closely evaluating the macroeconomic scenario. As a company, we are all geared up to leverage the opportunities presented by this industry. Over the last few years, we have ramped up our capabilities in a significant way. And have now put into place a super growth strategy to scale up our presence across multiple categories, even as we continue to focus on quality and innovation to stay ahead of the competition,” states Sanghavi whose family belonged to a farming community. The family has farms in Jalgaon spread over 100 acres where they grow fruits and other crops which also act as raw material for the company’s three large manufacturing units. In fact, his father initially started a one-room unit to process the surplus fruits grown at his family farm.            

Carrying forward the tradition of preserving the flavours of nature in time-honoured family recipes, his father packed a batch of freshly homemade mango squash in glass bottles and convinced his uncle, a full-time farmer, to sell them at the local market. By the end of the month, 80 per cent of the bottles were sold out. Strawberry, mulberry and pineapple squash followed thereafter.

 With the overwhelming response and after building a loyal following of customers, his father decided to start his own processed food company and named it Nilon’s, inspired by the then current rage of the world's first totally man-made fibre, Nylon, that had revolutionised industries and lifestyles across the globe. The first factory, a small unit of 2,000 sq feet, was opened right next to the family’s fruit and vegetable farms. Soon pickles and jams were added to Nilon’s offerings and the company quickly gained large institutional buyers including company canteens and Indian Railways.

Going beyond its existing market stronghold in central India, scouring new markets, expanding production capacities and distribution, adding flavour profiles and developing new product categories of western foods like pasta and noodles alongside traditional favourites like pav bhaji and chaat – all this contributed to Nilon’s growth from an Rs8 crore company to a Rs100 crore one within five years. Its extensive range of value products coupled with a sharp market focus rapidly fuelled expansion. The company’s sales reached Rs132 crore by 2009, and grew at 55 per cent CAGR every year. But it was only during the last decade that it transformed itself in a big way and is now ready to commence its next growth phase. 

“Getting the right taste in cooking is all about the finer nuances of procuring the right ingredients, getting the right, authentic recipes, the right temperatures and even the right timing of blending them to achieve culinary delight. At Nilon’s, we pay attention to the smallest detail and go that extra mile to ensure the best quality,” says Sanghavi.

To commemorate its 60th anniversary celebration, Nilon’s (also one of the largest pickle brands in the country) recently extended an invitation to aspiring women entrepreneurs to be a part of a collaboration journey through its launch of the ‘Pyaar, Achaar aur Mauka’ campaign. This aimed to tap into the true potential of entrepreneurship through direct participation from Indian households.

Pickle or achaar has a special place in meals all over India. It won’t be challenging to find a unique, mouth-watering achaar recipe in almost every Indian family. The contest invited all women to submit their unique pickle recipes and a sample, which was evaluated on various parameters by experts. The two-month-long process witnessed an astounding response, with 2,088 entries.

The entries saw some unique pickle recipes being shared. These included jackfruit, sprout, drumstick, berry, amla and onion pickles; every pickle had an interesting story behind it. On 27 April, Nilon’s selected 16 unique pickle recipes.

The company will be offering the winners of the contest all possible support, from commercial production of their pickle recipes at its factory in Jalgaon to packaging them (with their names on the label) and ensuring sales of the product through its nationwide distribution, and sharing a portion of the profits as well. This will also help the company tap into the unorganised pickle market which is estimated to be at around Rs1,500 crore as against the Rs500 crore organised market. 

Consumers' delight

Experts view this campaign as an innovative move which will go a long way in strengthening Nilon’s brand. “The first memory of Nilon’s that comes to my mind is their pickle sachet along with meals on trains from about a decade or more ago. Their innovations were a consumer delight then, as they are now. While they compete with global giants in FMCG, Nilon’s has remained relevant to consumers by continuously innovating, in the spirit of the quintessential Indian entrepreneur,” says N Chandramouli, CEO, TRA Research, a consumer analytics and brand insights company and publisher of TRA’s Brand Trust report.

Though the company has been in the business for decades now, it was only in 2009 that it commenced its journey 2.0. In 2008, the UK-based Pathak family picked up a 50 per cent stake in the company which was valued at Rs150 crore. In 2007, the Pathaks had sold their processed food business, Patak’s (into curry pastes, chutneys, pickles, etc) to Associated British Foods for around Rs1,500 crore and was looking at investing in the growing Indian processed food industry. The Pathak family not only invested in Nilon’s but also worked as a strategic investor, working closely with Sanghavi to initiate the company’s transformation story.

Currently, the Pathak family has a 39 per cent stake, while promoters hold a 31 per cent stake. The remaining stake is with BanyanTree, which initially in 2014 picked up a 22 per cent stake (Nilon’s was then valued at Rs350 crore) and subsequently in 2017 got it increased to 31 per cent. Avendus Capital had acted as the exclusive financial advisor to the 2014 transaction.   

With the infusion of equity capital, the company started its journey 1.0 in 2009 which saw it revamping its production facilities and supply chain and also putting up a new core management team which was more agile and ready to make bold decisions.   

By investing in fresh ideas sourced through customer collaborations, developing innovative recipes, and achieving quality benchmarks at affordable pricing, Nilon’s has continued its tradition of bold experimentation and introduced new products including Chinese Szechuan chutney, Chow mein masala, soya sauce, and red and green chilli sauce. All this has put the company on a high growth path.  Having grown at a CAGR of around 12 per cent in the last two fiscal years, it is all set to grow at around 30 per cent during the current year with supply chain-related challenges easing.   

As an organisation, Nilon’s is today strongly placed in a market which has evolved considerably in the last decade. Backed by state-of-the-art manufacturing facilities and professionals as part of the core team, the company is all set to start its journey 2.0. Apart from the South (4 per cent market), the company has built up a pan-India presence. It has an extensive range of products across multiple categories and looks to strengthen its position further by leveraging its capabilities and trusted brand.