Medimix makers to debut in QSR, cloud kitchens, oral healthcare

CHENNAI: AVA Group, manufacturers of the popular Medimix brand of ayurvedic soaps, is all set to foray into quick service restaurants (QSR), cloud kitchens and oral healthcare.

Flush with the success of its recently inaugurated second factory of Melam, the masala brand it acquired in 2015, the group is now gearing up to launch cloud kitchens and QSRs in Chennai, Kochi and Thiruvanthapuram. “These formats will go live in November,” top officials of the group told DT Next.

AV Anoop, Managing Director, AVA Group, gave an overview of the business from personal care products (Medimix) to ready-to-eat food (Melam) and health and wellness (Sanjeevanam). During the pandemic period, the group had opted to decentralise manufacturing across Chennai, Bengaluru and Puducherry. “Our products were the first to reach the market after the first lockdown,” he said, noting that the group adopted a different strategy, changing with the times after realising the increasing influence of technology at work.

“We shelved our plans to set up a new corporate office though we had bought land. We could have calls and meetings virtually including top government officials which helped us make this decision,” said Anoop, as he sought to explain the need to go frugal and reserve funds in anticipation of future pandemics too. 

He also talked about the success of the Medimix shampoo launch that also contributes to the group’s hair care vertical’s growth.

Vivek Venugopal, director, AVA Group, said unlike brands that seek to address a specific issue in hair care products, the group sees Ayurveda as a holistic science that revolves around balancing the ‘doshas’. “We don’t have any plans to bring variants in shampoos. Our products are meant for overall health and wellness,” he said, targeting a market share of 5 per cent in this business within a couple of years.

Pointing out the good growth in the packaged food segment, he said this was the reason to foray into QSR and cloud kitchen formats. “We plan to have these ready-to-eat food available in key locations for convenience of the traveler. Railway stations, bus hubs and airports are our target locations with central kitchens to address the hygiene factor. The fully-automated food production is aimed at keeping this in mind,” he added.

In the first half of next year, the group would launch its ayurvedic toothpaste to mark its debut in the oral care segment. “This will carry the Medimix brand,” Vivek said.

The group has been seeing 10 per cent year-on-year growth consistently in the green categories of its business, with Tamil Nadu topping the revenue chart. “In the personal care business, TN accounts for 30 per cent, while the Melam brand is the mainstay in Kerala,” he said, adding the group expects to go past Rs 400 crore in FY23.