CavinKare Eyes Rs 5,000 cr Revenue Post Restructuring of Business

CavinKare Ltd announced restructuring of its business under its 2.0 initiative to garner a revenue of Rs 5,000 crore in the next three years.

"We'd like to bring in a new structure, a high growth-oriented structure which defines CavinKare 2.0. It has to bring in innovation, e-commerce by combining the synergies across multiple divisions," said Chairman C K Ranganathan, CavinKare. 

“We're not doing it (restructuring of business) for the IPO. We need to aggressively grow to the size (of Rs 5,000 crore revenue) if we are going to (capital) the market," he added.

CavinKare would be investing around Rs 800-Rs 900 crore. "It will be in factories, distribution network, expansion, digital infrastructure. In salons, we will be investing close to Rs 100 crore," he said.

"Investment in dairy business will be around Rs 400 crore. We'll expand our hospitals. The third facility (of SANCHU hospitals) will be rolled out (soon) and we're planning to open 100 hospitals in the next three years. This will call for investments," he added.

While the targeted revenue was Rs 5,000 crore in the next three years, he said the company made Rs 1,700 crore last year. He said the thrust would be on e-commerce and innovation. 

Director of the company Venkatesh Vijayaraghavan would also be the Chief Executive Officer of the FMCG vertical and Amudhavalli Ranganathan is appointed as Director and CEO (New Initiatives) and Manuranjith Ranganathan would be Director-CEO (Retail).

The Chennai-based company has a presence in segments such as dairy, salons and hospitals for animals.