**iD Fresh Achieves Profitability with Premium Product Focus**
iD Fresh, a packaged foods manufacturer based in Bengaluru, has reported a net profit of ₹4.5 crore for the fiscal year ending March 2024, marking its first profitable year since its establishment in 2005. This achievement is attributed to a strategic emphasis on premium products and significant investments in expanding production capacity. P.C. Musthafa, the chairman and global CEO of iD Fresh, highlighted that the past year was one of the company’s best, with nearly double-digit EBITDA (earnings before interest, taxes, and depreciation).
In an interview, Musthafa noted that the introduction of new strategies, including the expansion of international business, played a crucial role in achieving this milestone. While specific financial figures for FY25 have not been disclosed as the company has yet to file its statements, iD Fresh is planning to go public by the end of FY27, contingent on market conditions. The company is reportedly in discussions to raise ₹500 crore through a secondary share sale.
The shift towards premium products reflects a broader trend among food brands as consumers increasingly prioritize health and wellness. iD Fresh has accelerated this transition in FY25 by launching over ten new premium items, including longer shelf-life spice blends, ready-to-heat sambhar, and chutneys. These new offerings are projected to contribute 10% of the company’s overall revenue within the next two years. Musthafa stated that these products have already begun to make a significant impact on revenue, with an internal target set for them to account for 10% of the topline by FY27.
In FY24, iD Fresh reported revenues of ₹557 crore, an increase from ₹479 crore in FY23. The introduction of premium variants of existing products, such as idli-dosa batter and ready-to-heat parathas, has also contributed to improved profitability. For instance, a 750 gm pack of iD’s protein-rich idli-dosa batter is priced at ₹159, compared to ₹95 for a 1 kg pack of the regular variant.
The trend of premiumization is becoming a significant growth driver across various consumer categories, with many companies seeking to differentiate their offerings at higher price points. According to a report by NielsenIQ, premium segments accounted for approximately 27% of total FMCG sales and contributed 42% of the sector’s value growth as of October 2024. As more companies in India aim to attract aspirational consumers, the introduction of global brands and premium categories is expected to continue shaping the market landscape.
**FAQ**
**What is iD Fresh’s strategy for growth?**
iD Fresh is focusing on premium products and expanding its international business to drive growth and profitability, aiming to capture a larger share of health-conscious consumers.
