Chatha Foods Concall April 2025: Key Updates and Future Plans

Table of Contents

Chatha Foods Concall – April 2025 Update
FAQs on Chatha Foods Concall
Final Thoughts

Chatha Foods Concall – April 2025 Update

The recent Chatha Foods Concall shared important updates about the company’s growth plans, challenges, and market direction. The management spoke clearly about their focus areas and where they see the company heading over the next few years. Here’s a simple breakdown of what was discussed.

About Chatha Foods

Chatha Foods Limited started in 2000. It was founded by Paramjit Singh Chatha. In the early days, the company mainly sold ready-to-eat and ready-to-cook meat products like chicken and pork. These were mostly sold to hotels.

But things changed in 2003 when Chatha Foods began supplying to Quick Service Restaurants (QSRs), starting with Subway. By 2007, Domino’s was also a client. In 2008, the company fully moved away from the hotel business and began focusing on the growing QSR segment. The main reason was the shift in demand toward Halal-certified products.

Now, Chatha Foods supplies to well-known QSR brands like Burger King and Café Coffee Day. The focus is to grow further in this space.

Production and Capacity

Right now, Chatha Foods produces about 6,000 metric tons of chicken each year. That’s around 500 metric tons every month.

There’s also a new vegetarian food plant being set up. Once ready, it will have a large daily capacity of 16,000 metric tons. This is a big move for the company as it steps into the vegetarian product market.

Along with Allana Sons, Chatha Foods has also started a joint venture. This partnership focuses on making value-added meat and chicken items. The goal is to reach 6,500 metric tons of production through this venture.

Financial Updates

To support these growth plans, Chatha Foods has spent about ₹40 to ₹43 crores on the new vegetarian facility. Out of this, ₹20 crores were recently raised to support the new joint venture.

The vegetarian plant is expected to start operations by August or September 2025. The company expects it to begin showing a real impact on sales and revenue from FY 2027.

As of now, the chicken plant is running at 420 to 450 metric tons per month. This number is likely to go up as more clients join.

Business Strategy

In the Chatha Foods Concall, the company shared that they see limited growth in the chicken segment. The reason? Heavy competition, especially in the B2C market. Because of this, they are shifting more focus to vegetarian products.

They believe that vegetarian foods will bring more opportunities, including in exports. Local players are crowding the chicken space, leading to lower prices and tighter margins. This makes it harder to grow in that area.

So, the company is putting its energy into a fresh space where it can stand out – vegetarian food, both in India and overseas.

Products and Customer Growth

One major change Chatha Foods is making is in how they create products. They are working towards making items without added chemicals. This step is based on what today’s consumers want – cleaner and healthier food.

Adding new QSR clients is not a quick process. It usually takes 3 to 6 months. The companies go through detailed trials and audits before placing large orders. Even then, Chatha Foods is doing well in this area. They managed to bring in four new QSR customers just last year.

Managing Money and Stocks

The Chatha Foods Concall also talked about working capital. That’s the money a business uses for day-to-day operations. Recently, there has been a rise in money stuck in payments and stock. This is due to new clients being added and longer payment terms.

Right now, the company waits around 40 to 45 days to receive payments (debtor days). Inventory, or stock on hand, is kept for about 30 days.

The company has a working capital limit of ₹12.7 crores. Currently, 90% of that limit is being used.

Looking Ahead

Chatha Foods has a clear goal. They want to grow their revenue four times by FY 2029. That’s a big aim, but the management sounds confident.

They plan to grow exports in both vegetarian and non-vegetarian products. But they are not losing focus on quality. In the Chatha Foods Concall, the team clearly mentioned that they will continue to stick to hygiene and quality checks, especially in chicken processing.

Key Challenges

Of course, there are challenges too. One of the biggest is the tough competition in the B2C chicken market. Many local brands compete on price, making it hard to grow.

The vegetarian product line is new. So while the company hopes for strong sales, the actual performance will depend on how customers respond.

Still, Chatha Foods seems to be ready to take the risk and make it work.

Summary

Here’s what we learned from the Chatha Foods Concall in simple words:

The company is moving towards vegetarian products while keeping its chicken business stable.
They are setting up a new large vegetarian plant, aiming to start by late 2025.
Joint ventures and new client onboarding are top priorities.
Finances are under control, even with some pressure from receivables.
Big revenue growth is planned by 2029.
Challenges remain, especially in the crowded chicken market.

This shift toward vegetarian food might change the game for Chatha Foods. With cleaner products, bigger capacity, and growing QSR connections, they’re building a stronger base for future growth.

FAQs on Chatha Foods Concall

What is Chatha Foods known for?

Chatha Foods is known for ready-to-eat and ready-to-cook chicken and pork products, mainly sold to QSR chains like Subway, Domino’s, and Burger King.

What was the main focus of the April 2025 Chatha Foods Concall?

The focus was on their shift to vegetarian products, updates on the new facility, joint ventures, financial planning, and future growth goals.

When will the new vegetarian facility start?

It is expected to start operations by August or September 2025.

Why is Chatha Foods moving towards vegetarian products?

There is too much competition in the chicken market. The company sees better chances for growth in the vegetarian space, both in India and abroad.

Is Chatha Foods still focusing on chicken products?

Yes, but the main growth plans are in the vegetarian line. They will continue maintaining quality in chicken processing.

What are debtor and inventory days for the company?

Debtor days are around 40–45 days, and inventory days are kept at about 30 days.

What is the long-term goal of Chatha Foods?

They aim to grow their revenue by 4 times by FY 2029 and expand their export market.

Final Thoughts

The Chatha Foods Concall in April 2025 showed that the company is not standing still. With smart moves toward vegetarian foods, solid partnerships, and a clear growth path, Chatha Foods is working to stay ahead.

They know the challenges, but they also have a clear plan. And while success in the vegetarian space is not guaranteed, their focus and preparation suggest they’re ready for the next big step.