GRM Overseas, mainly into Basmati rice trading and export, is set to expand its portfolio to include edible oils, spices and other products. The company is targeting a revenue of Rs 1,000 crore in domestic sales in the next three years, Managing Director, Atul Garg, said.
In 2022-23, domestic sales stood at about Rs 270 crore, registering 43 per cent growth since its entry into the domestic market in December 2020, Garg told businessline. The turnover from the export business was about Rs 1,100 crore during the last fiscal.
“There is plenty of scope in tier-II and tier-III towns and cities, where demand is moving to the branded segments,” Garg said. The company’s strategy is to capture both conventional consumers, who prefer to buy from a store, as well as those who use online platforms and mobile apps.
On its advertising plans, Garg said GRM would avoid the more expensive TV commercials, and instead reach out to its target audience through social media platforms. Influencers have also been roped in to spread awareness on the brand, he added.
The company exports basmati rice under the ‘Himalayan River’ brand in the UK and other European countries, while in West Asia, it sends the shipments custom labelled as per its clients’ brands, he said.
The main brand in the domestic market is called “10X”, under which are sub-brands for different products. “We have incorporated GRM Foodkraft, a subsidiary of GRM Overseas, for the Indian market, to drive domestic sales,” Garg said. While growth in the metros is stagnant, tier-II and tier-III towns and cities have seen 15-20 per cent growth in Basmati sales, he said.
Apart from Basmati rice, the company has launched wheat flour (chakki atta), mustard oil and some spices, with plans to launch some more products by Diwali.
Garg said most of the products are outsourced as they have been taken on lease or entered into agreements with local suppliers to provide the products. However, in some cases, the company is doing the product sourcing itself, and getting it processed under its own supervision, he added. Products such as besan, maida, sooji and poha are likely to be launched in a month and will be sold under the ‘Shakti’ sub-brand. There is no plan to enter the branded pulses segment, he said.
The company is poised to gain some market share immediately in north India as its sub-brand “Shakti” sounds similar to “Shaktibhog”, a brand that has been discontinued, according to experts. However, pricing will be a key factor to capture the organised branded market for food products.
Web Title – GRM Foodkraft targets Rs 1,000 crore turnover in 3 years under ‘10X’ brand