GRM Overseas, a leading exporter of basmati rice from India, is now seeking to establish a strong presence in the domestic market as a consumer staple company. The company has introduced various products in the domestic market, such as basmati rice, ready-to-eat basmati kits, spices, and wheat flour. Additionally, GRM Overseas has launched a pilot project to introduce mustard oil.
To market their products, GRM Overseas is utilizing various channels, including general trade, modern trade, and e-tailers. The majority of their business, around 70 percent, comes from general trade, while 25 percent is from modern trade, and the remaining 5 percent is through e-commerce.
The company is specifically targeting tier 2 and tier 3 markets, where there is a growing demand for branded staples. They have observed an increase in rural demand over the past few months and are focusing on towns with a population of over 500,000. Farmers in these areas, who previously preferred loose rice and wheat flour, are now shifting towards branded products, and GRM Overseas aims to capitalize on this trend.
In terms of financial performance, GRM Overseas reported net sales of Rs 1,380 crore in FY23, compared to Rs 1,080 crore in FY22. Out of this, domestic business contributed Rs 270 crore. The company believes that there is significant room for growth in the wheat flour or atta segment in the domestic market. They have observed that progressive women are increasingly purchasing branded atta due to the convenience and health benefits it offers.
GRM Overseas sells its products under brands such as “10X,” “Himalaya River,” “10X Shakti,” and “Tanoush.” They also engage in private label arrangements to sell products under customers’ brands.
Initially focused on rice processing and trading, GRM Overseas has expanded its operations and now aims to become a consumer staples organization. The company has three rice processing units with a combined annual production capacity of 440,800 MT located in Panipat (Haryana), Naultha (Haryana), and Gandhidham (Gujarat). They have successfully established a market for their rice in 42 countries, making them the third-largest rice exporter in India.