DRRK Foods, a leading basmati rice producer, has announced an investment of Rs. 20 crores to establish a new packing, sorting, and grading facility spanning 17 acres near Mundra Port. Expected to be operational by February 2025, the facility will enhance the company’s rice export capabilities.
Currently, DRRK Foods operates three advanced rice mills in Amritsar, covering a 2-lakh sq. ft. area, with a daily milling capacity of 650 metric tons of paddy crop. The new facility will have the capability to pack 350 metric tons of rice per day, exclusively for exports, according to Amit Marwaha, Managing Director and CEO of DRRK Foods Pvt. Ltd.
Looking ahead, the company is planning a larger expansion with another unit, either in Haryana or Madhya Pradesh, with a capacity of 600 metric tons per day. This new project will involve an investment of Rs. 60-70 crore.
With the growing demand for basmati rice in India, DRRK Foods aims to shift its focus towards the domestic market. “We currently have around 70 distributors across India, and our goal is to increase this number to 200 in the next two years,” Marwaha added. The company’s in-house brand, Crown, is available in general trade stores and on major e-commerce platforms, with plans to expand its presence into the quick commerce sector soon.
Crown is currently exported to over 15 countries, and DRRK Foods plans to extend its reach to 30 countries by the end of the next fiscal year. The brand contributes 15% to the company’s revenue, a figure they aim to double within the same period.
In the fiscal year ending March 2024, DRRK Foods reported revenues of Rs 850 crore, with 80% of earnings derived from exports. The company is targeting Rs 1,000 crore by the end of this fiscal year. They also project a 25-30% growth in export volumes, driven by improved market conditions.
Furthermore, DRRK Foods is set to enter the spices category, with a new product line expected to launch in the next 2-3 months.
DRRK Foods is a prominent player in the basmati rice industry, exporting to over 40 countries worldwide. The company is known for its high-quality rice products and has maintained a steady profit margin of 7% over the past five years.