DRRK Foods, a producer of basmati rice, is investing INR 20 crore to establish a packing, grading, and sorting unit on 17 acres near Mundra Port. This new unit is expected to be operational by February 2025, according to Amit Marwaha, MD and CEO of DRRK Foods Pvt Ltd.
Current͏͏ Operations͏͏ and͏͏ Capacity:
The͏͏ company͏͏ currently͏͏ operates͏͏ three͏͏ state-of-the-art͏͏ rice͏͏ mills͏͏ in͏͏ Amritsar,͏͏ covering͏͏ an͏͏ area͏͏ of͏͏ 200,000͏͏ square͏͏ feet͏͏ and͏͏ processing͏͏ 650͏͏ metric͏͏ tons͏͏ of͏͏ paddy͏͏ daily.
New͏͏ Unit’s͏͏ Daily͏͏ Output:
He͏͏ stated͏͏ that͏͏ the͏͏ new͏͏ unit͏͏ will͏͏ be͏͏ capable͏͏ of͏͏ packing͏͏ 350͏͏ metric͏͏ tons͏͏ of͏͏ rice͏͏ daily͏͏ and͏͏ will͏͏ be͏͏ used͏͏ for͏͏ rice͏͏ exports.
“We͏͏ plan͏͏ to͏͏ open͏͏ another͏͏ unit͏͏ in͏͏ either͏͏ Haryana͏͏ or͏͏ Madhya͏͏ Pradesh͏͏ with͏͏ a͏͏ capacity͏͏ of͏͏ 600͏͏ metric͏͏ tons͏͏ per͏͏ day͏͏ for͏͏ paddy͏͏ crops,͏͏ and͏͏ we͏͏ will͏͏ invest͏͏ INR͏͏ 60-70͏͏ crore͏͏ in͏͏ this͏͏ facility,”͏͏ he͏͏ further͏͏ added.
DRRK Foods Focuses͏͏ on͏͏ Domestic͏͏ Market͏͏ Growth:
Moving͏͏ forward,͏͏ the͏͏ company͏͏ intends͏͏ to͏͏ focus͏͏ more͏͏ on͏͏ the͏͏ Indian͏͏ market͏͏ due͏͏ to͏͏ the͏͏ rising͏͏ consumption͏͏ of͏͏ basmati͏͏ rice͏͏ in͏͏ the͏͏ country.
He͏͏ asserted,͏͏ “Currently,͏͏ we͏͏ have͏͏ approximately͏͏ 70͏͏ distributors͏͏ across͏͏ India,͏͏ and͏͏ we͏͏ plan͏͏ to͏͏ increase͏͏ this͏͏ number͏͏ to͏͏ 200͏͏ within͏͏ the͏͏ next͏͏ two͏͏ years.”
Its͏͏ in-house͏͏ brand,͏͏ Crown,͏͏ is͏͏ available͏͏ in͏͏ general͏͏ trade͏͏ stores͏͏ and͏͏ major͏͏ e-commerce͏͏ platforms͏͏ across͏͏ India.͏͏ The͏͏ company͏͏ plans͏͏ to͏͏ expand͏͏ its͏͏ presence͏͏ into͏͏ quick͏͏ commerce͏͏ soon.
Continue͏͏ Exploring:͏͏ Crown͏͏ Rice͏͏ launches͏͏ premium͏͏ diet͏͏ rice͏͏ with͏͏ low͏͏ glycemic͏͏ index͏͏ for͏͏ health-conscious͏͏ consumers
The͏͏ company͏͏ is͏͏ currently͏͏ exporting͏͏ Crown͏͏ to͏͏ over͏͏ 15͏͏ countries͏͏ and͏͏ aims͏͏ to͏͏ expand͏͏ its͏͏ presence͏͏ to͏͏ as͏͏ many͏͏ as͏͏ 30͏͏ countries͏͏ by͏͏ the͏͏ end͏͏ of͏͏ the͏͏ next͏͏ fiscal͏͏ year.
He͏͏ stated,͏͏ “Currently,͏͏ Crown͏͏ accounts͏͏ for͏͏ 15͏͏ percent͏͏ of͏͏ our͏͏ revenue,͏͏ and͏͏ we͏͏ aim͏͏ to͏͏ double͏͏ this͏͏ figure͏͏ by͏͏ the͏͏ end͏͏ of͏͏ the͏͏ next͏͏ fiscal͏͏ year.”
Revenue͏͏ and͏͏ Profit͏͏ Targets:
The͏͏ company,͏͏ which͏͏ closed͏͏ the͏͏ last͏͏ fiscal͏͏ year͏͏ with͏͏ INR͏͏ 850͏͏ crore͏͏ in͏͏ revenue,͏͏ is͏͏ targeting͏͏ to͏͏ reach͏͏ INR͏͏ 1,000͏͏ crore͏͏ by͏͏ the͏͏ end͏͏ of͏͏ the͏͏ current͏͏ fiscal͏͏ year.
He͏͏ said,͏͏ “Eighty͏͏ percent͏͏ of͏͏ our͏͏ revenue͏͏ comes͏͏ from͏͏ exports,͏͏ while͏͏ the͏͏ remaining͏͏ 20͏͏ percent͏͏ is͏͏ generated͏͏ from͏͏ the͏͏ domestic͏͏ market.͏͏ We͏͏ have͏͏ maintained͏͏ a͏͏ net͏͏ profit͏͏ ratio͏͏ of͏͏ approximately͏͏ 7͏͏ percent͏͏ over͏͏ the͏͏ last͏͏ five͏͏ years.”
Currently,͏͏ the͏͏ company͏͏ exports͏͏ to͏͏ 40͏͏ countries͏͏ and͏͏ intends͏͏ to͏͏ begin͏͏ exporting͏͏ to͏͏ 10͏͏ additional͏͏ countries͏͏ by͏͏ the͏͏ end͏͏ of͏͏ the͏͏ next͏͏ fiscal͏͏ year.
He͏͏ asserted,͏͏ “We͏͏ are͏͏ also͏͏ targeting͏͏ a͏͏ 25͏͏ to͏͏ 30͏͏ percent͏͏ increase͏͏ in͏͏ export͏͏ volumes͏͏ this͏͏ year,͏͏ supported͏͏ by͏͏ improved͏͏ market͏͏ conditions.”
Moving͏͏ forward,͏͏ the͏͏ company͏͏ is͏͏ entering͏͏ the͏͏ spices͏͏ category͏͏ and͏͏ plans͏͏ to͏͏ launch͏͏ its͏͏ range͏͏ of͏͏ spices͏͏ within͏͏ the͏͏ next͏͏ 2-3͏͏ months.
