Kerala-based Elite Foods began its bread business in 1986 and expanded without external funding. In FY23, the company reported operating revenue of ₹822.55 crore.

Kerala bakery earns Rs 822 crore

While most startups today seek funding from investors to expand their businesses, a Kerala-based bakery company has built a multi-billion-dollar business without any external funding. Founded in 1986, Elite Foods Private Limited has established itself as a major brand in both India and abroad. The company reported operating revenue of ₹822.55 crore in fiscal year 2023.

In fact, this figure represents the company's total operating income, not its profits. Founded in Thrissur, the company began its journey by making bread, but gradually expanded its business to cakes and other food products. Today, it has a presence not only in India but also abroad. Let's explore how a small bakery company grew to such a large scale.

How did Elite Foods start?

Elite Foods Private Limited was founded in 1986 by TR Raghulal. A key reason behind the company's launch was the lack of quality bread. After returning from his studies in the United States, Raghulal couldn't easily find quality bread like the ones available abroad in India. Turning this need into a business opportunity, he decided to start a bakery.

They used modern machinery and technology to produce bread, which was not common in India at the time. Initially focused on bread, the company later expanded into cakes and other bakery products. Recognizing the need for better-quality flour, the company also established its own mill, which helped strengthen its production process.

How did the business grow without funding?

From the outset, Elite Foods focused on its business and quality products rather than seeking external funding, which helped it differentiate itself in the market. Starting with bread, the company expanded into other products to meet its production needs.

Today, the company has nine factories and its products reach India and several international markets. Besides India, the company has also established a presence in the Middle East, the United States, the United Kingdom, Europe, Canada, Singapore, Australia, and other international markets.

How did the company reach revenue of Rs 822 crore?

According to the 2024 report of credit rating agency Crisil, Elite Group recorded operating income of ₹698.76 crore in FY2022, which increased to ₹822.55 crore in FY2023. This means the company's operating income increased by more than 17% over the year. However, the company's profit also increased to ₹26.69 crore during this period.