Popcorn Business In India Is Skyrocketing
Bangalore: While the economic scenario in India is not very encouraging with the rupee falling to its all time low at 62.46, the booming popcorn business can be a relief to many. The popcorn industry in India is growing extensively with an annual sales growth of 10 percent. With multiplexes coming up every fourth night, the consumption of popcorn is unbelievable. Not only the popcorn tubs in multiplexes are in high demand, the microwavable corns are also wanted by many, reports Madhvi Sally of Economic Times.
In spite of its high custom duties which is about 56 percent, Agro Tech Food and Banaco Overseas, the two major players in popcorn industry annually imports about 23,000 tonnes (mostly from the American continent). Banaco’s proprietor Vinod Kansal says that popcorn accounts for almost 70 percent of multiplex revenues.
The margin the popcorn business enjoys is much more than a blockbuster movie. A corn kernel supplier said that the raw material is sold to movie theatres for 120-150 per kg. But the retail price of 1 kg popcorn is 1500 including the cost of production to packaging. Hence, the margin is an eye-popping 1350 per kg. Even the microwavable corn industry enjoys a high margin with a retail price of 35 for 85 gms packs.
Seeing the growing popcorn market, the Indian farmers are also concentrating on maize cultivation and almost 25 percent of the production is sent to food industry. According to experts, this industry is only going to rise in the coming years. Responding to the above forecast, new entrepreneurs are emerging in various parts of India. Hyderabad- based Venagro is a new player and is annually selling 2,500 tonnes of corn in bulk.
The good news is that even nutritionists approve of this snack and hence we can munch as much popcorns as we want without worrying about health hazards.
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