New Delhi: Leading basmati rice exporter GRM Overseas Ltd has decided to foray into the domestic market and will invest around Rs 50 crore over the next two years to expand its business across the country.
The company sees tremendous growth potential in the domestic market where the demand for packaged branded basmati rice is rising at a rapid pace, its MD Atul Garg said.
GRM Overseas, a listed entity with around Rs 950 crore turnover in the 2017-18 fiscal year, has two processing plants at Panipat in Haryana and recently acquired a plant in Gujarat.
"We are the third largest basmati rice exporter in the country. Now, we are entering the domestic market under our brand Tanoush," he told PTI.
Garg said the company would be launching three-four variants of branded basmati rice in a price range of Rs 50-120 per kg.
He said the company will be investing about Rs 50 crore over the next two years for the domestic market business.
This investment includes acquiring a plant near Mudra port in Gujarat and establishing distribution and retail network across the country.
The Gujarat plant will cater to exports while the two plants in Panipat have been earmarked to serve the domestic market.
"We have set a target to achieve Rs 1,000 crore turnover in the domestic market in the next five years," Garg said, adding that the total market size of branded basmati rice in India is around Rs 14,000 crore.
India Gate, Daawat and Tilda are the leading basmati rice brands in the country.
Asked about exports, Garg said the company is estimated to have exported around 1.4 lakh tonnes last fiscal worth around Rs 1100 crore.
It exports basmati rice to 32 countries, with Middle East as a key market, under private labels as well as its own brand.
GRM functions through a network of sales and distribution offices in the UK, US and Middle East and has tied up with 1,800 stores globally to reach its customers.
Last week, it formed a strategic alliance with MAN Consumer to distribute its brand Tanoush in 22 Carrefour hypermarket stores across the UAE.
GRM is also present in large retail stores such as TESCO, ASDA (Walmart UK) and T J Morris in the UK, Albert Heign in Holland and Metro in Poland.