KRBL Limited – the world’s largest rice millers and Basmati rice exporters as well as owners of the flagship brand India Gate basmati rice – has plans to boost its operations across the Middle East region, particularly in the GCC, by focusing on strengthened ties with local partners and expanding its distributor network.
The Company, which recorded a total export revenue of US $203.48 million for the year 2014-15, said its long-term business strategy is to grow this business by 75 per cent over the next five years. Rice consumption in the Middle East is continuously increasing, thus enabling expansion of the rice market, especially the Basmati rice segment.
“The total consumption in the Middle East is about 3 million metric tonnes, and KRBL is targeting around 25 per cent of this volume owning to its large milling capacity of 1.2 million metric tonnes,” said Priyanka Mittal – Director of KRBL Limited. “The Gulfood exhibition is an important trade fair for KRBL with Middle East being our biggest market outside India. Today, 85 per cent of our total export revenue comes from the Middle East. With a truly global population and changing demographics, this region offers a huge potential for growth, and we want to capitalize on this opportunity. At KRBL, we have the capacity and the infrastructure to support this growth. Our marketing strategy towards achieving this is to offer a product basket that caters to all consumer levels.”
KRBL adopts a basket approach to brand introduction; new products are launched after due diligence, feedback from market distributors and an in-depth understanding of consumer needs. The Company recently forayed into the value segment by introducing the Bab Al Hind brand in UAE, and launching the Nurjahan brand in Qatar, Bahrain and Oman.
“While Indian basmati rice continues to enjoy robust growth in Arab markets, we are committed to rolling out other brands depending on the size of the opportunity and our ability to cater to demand,” she added.
With a distributor network well-positioned to deliver on current growth targets, the Company’s long-term business goals focus on new conversions and spurring brand growth through trail generation. KRBL future plans include tapping into potential markets such as Turkey, Azerbaijan, Georgia, Kazakhstan, and Yemen, to name a few.