GRM Overseas, a renowned exporter of basmati rice from India, is preparing to establish itself as a consumer staple firm in the home market.
To begin, the firm has brought basmati rice, ready-to-eat basmati kits, spices, and wheat flour into the domestic market, as well as a trial effort to offer mustard oil.
Atul Garg, managing director of GRM Overseas said “We are using general trade, modern trade, and e-tailers to market our products. Nearly 70 percent of our business comes from general, 25 percent from modern trade, and the rest 5 percent through e-commerce.“
The company is focusing on tier 2 and tier 3 markets, where the demand for branded staples is on the rise. “We are seeing that the rural demand has picked up in the last five to six months. We are marketing our products in towns which have a five lakh plus population. The farmers, who were earlier inclined to lose rice and wheat flour or atta, are now shifting to branded products and we want to leverage this trend.“
GRM Overseas has clocked a net sales of Rs 1380 crore in FY 23 as compared to Rs 1080 crore in FY 22. “Of the Rs 1,380 crore, domestic business has contributed Rs 270 crore,” Garg added. He said that the wheat flour or atta segment has huge room to grow in the domestic market. “Progressive women are buying branded atta keeping in mind the convenience and health of the family. This is why we are witnessing a shift to branded atta,” he said.
The firm distributes items under its own trademarks, such as “10X”, “Himalaya River”, “10X Shakti” and “Tanoush,” as well as via private label agreements under clients’ names.
GRM began as a rice processing and trading company and has evolved into a consumer staples company.
GRM Overseas exported rice to the Middle East, the United Kingdom, and the United States in its early years. GRM has gradually expanded its scope, establishing a market for its rice in 42 countries and becoming India’s third-largest rice exporter. The firm operates three rice processing plants in Panipat (Haryana), Naultha (Haryana), and Gandhidham (Gujarat), with a total yearly output capacity of 4,40,800 MT. Furthermore, the Company has a 1.75 Lakh sq ft warehouse facility close to the Gandhidham factory, allowing for quick exports from Kandla and Mundra ports.
