Backed by about a 40-50 per cent rise in basmati rice ( Pusa 1121 variety ) production and capacity expansion, Kohinoor Foods expects a turnover of close to Rs 1,000 crore this financial year.
At present, the company's annual sales is close to Rs 650 crore, with exports accounting for about Rs 250 crore of the turnover.
“We are expecting to finish this year with a turnover of about Rs 1,000 crore. Our target is to have exports of Rs 400 crore this year,” said Gurnam Arora, joint managing director of Kohinoor Foods. Paddy production across the country has been hit by drought this year, and the government hopes to meet the demand with a good rabi or winter crop. “Pusa 1211 variety generally does not require much water. Also even though monsoons were not good this year, good rains just ahead to of the harvesting season, was conducive to its production,” added Arora. Pusa 1211 accounts for a bulk of basmati rice, which is generally harvested in October, while the sowing takes place in July-August.
In view of good production, the export price of basmati rice might come down by 40-50 per cent this year, added Arora. Also, the export price of basmati rice had gone up by substantially last year per due to the lower than expected supply.
Kohinoor Foods, at present, has two processing units, one rice mill and another food processing unit, in the outskirts if Delhi. The company plans to augment production in both the units significantly this year.
The daily capacity of the food processing unit of the company is 50,000 meals per day, and that of the rice mill is 50 tonne rice per hour. Also, Kohinoor Foods is planning to introduce newer varieties in the ready-to-eat segment by introducing products exclusively meant for exports markets in India as well.
“We are planning to introduce a couple of new products in Indian markets like Indian curry cooked in olive oil, which is currently available only in the US. We plan to introduce such products in all over export markets,” said Arora.
Source : Business Standard