Boparan Holdings, the owner of UK-focused food company 2 Sisters Food Group, has unveiled a "substantial" and "targeted" investment drive that will see the company spend GBP205m (US$314.6m) in driving improvements at its poultry and meal solutions units.

The company said today (27 October) it will invest GBP150m in its poultry business. 2 Sisters CEO Ranjit Singh said the group plans to "completely revolutionise our supply chain end-to-end". 

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He continued: "We are aiming to further align our poultry business with the needs of our customers, creating world class facilities utilising state of the art technology, and driving efficiency."

2 Sisters also intends to build on efforts to reduce levels of campylobacter in its chicken products. To date, the company has invested GBP10m in an attempt to cut the incidence of contamination. 

In addition, Boparan said it will spend GBP55m on increasing capacity across its four ready meal sites and increasing its innovation capability. Singh said the move will "put us at the forefront of developing the next generation of ready meals".

The investments follow a recent GBP4m investment in increasing 2 Sisters' frozen pizza capacity this year. 

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Boparan unveiled its plans when it booked a drop in full-year sales and operating profitability earlier this morning. Revenue in the 12 months to 1 August dropped 8.2% to GBP3.14bn while operating profit dropped 34.3% to GBP58.8m on the back of a 70 basis point decline in operating margin

Singh said Boparan was working to strengthen its business model by investing in its operating units. "Our business transformation continues at pace and with a number of investment programmes in place, I am confident we have the right strategy to meet the needs of our major customers who increasingly demand long-term, dedicated partnerships with their suppliers," he said. 

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