Supra Trends Limited has announced a strategic expansion into the Quick Service Restaurant (QSR) and packaged snacks industry with the launch of a new brand called 'The South Factory'. This move marks a significant diversification for the company as it taps into the growing Indian snacks market, valued at over $12 billion and experiencing a 12% Compound Annual Growth Rate (CAGR).

Brand Concept and Offerings

'The South Factory' aims to celebrate Southern India's rich culinary heritage through modern convenience offerings. The brand will focus on authentic South Indian flavors in two main verticals:

1. Packaged Foods: This segment will include a variety of products such as:

   • Namkeens (traditional and healthy variants)
   • Chips (banana and potato)
   • Chikkis (peanut, millets, and dates with dry fruits)
   • Ready-to-eat powders

2. QSR Outlets: These modern format restaurants will serve traditional South Indian items like idli, dosa, and filter coffee, along with a diverse menu showcasing dishes from Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, and Telangana.

Expansion Strategy

Supra Trends Limited has outlined a three-phase implementation plan for 'The South Factory':

1. Phase 1: Launch packaged foods through e-commerce and marketplace channels, alongside two pilot QSR outlets.
2. Phase 2: Expand into modern trade and institutional business.
3. Phase 3: Enter the general trade business.

Market Positioning

'The South Factory' is positioning itself in the fast-growing QSR segment, aiming to bridge the gap between local tiffin centers and expensive casual dining options. The brand's value proposition offers fast, hygienic, and authentic South Indian food at affordable prices for customers, while providing a scalable QSR format for investors and partners.

Trademark and Branding

The company has applied for trademark registration of 'The South Factory' under Classes 29, 30, and 43. The brand identity is described as 'Modern Southern-Desi & Affordable Premium', with a color palette including saffron, deep purple, coffee brown, and turmeric yellow.

Market Opportunity

Supra Trends Limited is entering a promising market, with the Indian snacks sector valued at over $12 billion and growing at a 12% CAGR. Additionally, the QSR sector is recognized as the fastest-growing segment within the food and beverage industry, with rising demand for regional and authentic food brands.

This strategic move by Supra Trends Limited represents a significant pivot from its previous operations, as the company aims to capitalize on the growing appetite for convenient, authentic South Indian cuisine across the country. As 'The South Factory' rolls out its offerings, it will be interesting to see how this new venture impacts the company's growth trajectory in the competitive food and beverage market.

Supra Trends , a diversified company with interests in food specialties and hospitality, has announced its financial results for the first quarter. The company reported a consolidated net loss of Rs 35.10 crore for the quarter, despite a significant increase in revenue from operations.

Financial Performance

The company's consolidated financial results for Q1 show:

On a standalone basis, Supra Trends Limited reported:

• No revenue from operations
• A net loss of Rs 25.80 crore
• Basic earnings per share at negative Rs 0.19

Operational Highlights

The consolidated results include the performance of Supra Trends Limited's subsidiaries:

1. Rasvat Food Specialities Private Limited (Wholly Owned Subsidiary)
2. Celest Hospitalities Private Limited (Subsidiary)

While the company's revenue from operations saw a substantial increase to Rs 241.10 lakh from nil in the same quarter last year, the rise in expenses outpaced the revenue growth. Total expenses for the quarter stood at Rs 281.06 lakh, resulting in the reported net loss.

Management Commentary

The company's board of directors, led by Managing Director Bhavani Ajjarapu, approved these unaudited financial results at a meeting. The meeting, which commenced at 4:00 PM and concluded at 5:00 PM, also saw the review of these results by the Audit Committee.

Auditor's Review

NSVR & Associates LLP, the company's statutory auditors, conducted a limited review of the financial results. In their report, they stated that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

Looking Ahead

While Supra Trends Limited has shown significant revenue growth on a consolidated basis, the increase in expenses and resulting net loss indicate challenges in achieving profitability. Investors and stakeholders will be watching closely to see how the company manages its costs and leverages its subsidiaries in the food specialties and hospitality sectors to drive growth and improve bottom-line performance in the coming quarters.

The company continues to operate in a single segment, as noted in its financial statements. As Supra Trends Limited navigates through this period of revenue growth and cost management, the market will be keen to observe its strategies for achieving operational efficiency and financial stability.