KRBL bullish on non-basmati growth in domestic market

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Expecting to cash in on the expanding demand for premium non-basmati varieties, some of them priced above basmati rice, the popular Basmati brand “India Gate” has decided to focus on some of these varieties under the branded category after realising their sales potential. As the sales revenue from the non-basmati segment is likely to reach ₹200 crore this fiscal, KRBL, the owner of India Gate, will likely commission two processing units, one in Kandla (Gujarat) and another in Karnataka, mainly for its expansion plan in non-basmati rice.

To enter spices

KRBL’s business head Ayush Gupta told businessline that the company has been doing extremely well in the domestic market and plans to expand the portfolio by getting into spices. Already some spices (Biriyani masala) have been launched as complementary to Basmati rice and those will be available standalone, across the country from this month, Gupta said.

KRBL on Tuesday announced its results for the October-December quarter of the current fiscal where its overall revenue slipped 6 per cent to  ₹1,437 crore from ₹1,536 crore in the year-ago period, mainly due to a 47 per cent dip in export earnings. The domestic market provided the major boost, with income from it increasing nearly 15 per cent in the third quarter of FY24 and having a share of 80 per cent.

Plans for plants

Asked if the company does not have an issue with the same brand India Gate, known for basmati, also selling non-basmati, Gupta said, “Every variety in the non-basmati segment will not come under India Gate brand. So, they have selected only a few varieties such as Surti Kolam, Jeera Rice, Sona Masoori, Wada Kolam and Gobindobhog.”

He said while the Karnataka plant will be used mainly for Sona Masoori, the Kandla plant having a capacity of 500 tonnes per day, will also pack basmati rice in consumer packs, apart from processing and packing Wada Kolam non-basmati rice.

Further, Gupta said the domestic growth primarily was fuelled by a significant increase in branded basmati sales, alongside an impressive 158 per cent surge in non-basmati sales. “There was robust volume growth in both consumer and bulk pack segments,” he said. In the non-basmati segment, depending on the consumers’ preference for a particular variety, the company will decide the bulk or consumer pack, he said.