Riding on robust support from its domestic business, KRBL Limited, the world’s largest rice millers and basmati rice exporters, and parent company of the renowned basmati rice brand India Gate, achieved its highest ever revenue from the Indian market in the period October-December 2023, crossing revenues of INR 1000 crore.
Over the past few quarters, KRBL Ltd. has intensified its efforts to expand its business in India, resulting in a 14% year-on-year revenue growth. This expansion is chiefly driven by a notable rise in sales of branded basmati rice, coupled with a remarkable 158% increase in non-basmati rice sales. With strong growth witnessed across both consumer and bulk pack segments within the Indian market, the company achieved a consolidated revenue of INR 1465 crore for the quarter.
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Ayush Gupta, Business Head for India Market, KRBL Limited said, “We have been witnessing steady growth in our domestic business through the last few quarters, with Q3FY24 being the highest ever. We also see our domestic business show a 9-month volume growth of 13% which is significantly higher than the FMCG volume growth of 5-7%.”
During the quarter, KRBL expanded its distribution network by 52,665 outlets, reaching a total of 385,970 retail points. The company achieved a market share of 35.9% in traditional trade, marking its highest historical figure.
Likewise, KRBL’s regional rice portfolio, which includes Sona Masuri, Kolam, and Gobindobhog, has been experiencing positive momentum, contributing nearly INR 159 crore year-to-date to domestic revenue. In the last quarter alone, this portfolio accounted for 5.62% of the overall revenue in India and is poised to surpass INR 200 crore by the end of the fiscal year.
Gupta added, “Our performance has come on the back of unwavering focus on brand-building, driven by consumer insights and sustained media investments. Furthermore, our portfolio expansion and significant improvements in our supply chain capabilities have empowered us to achieve our highest-ever quarterly revenue.”
“Regional rice has huge potential to grow and we will be aggressively pursuing this segment. Over the next 9-12 months, we anticipate doubling of revenues in the portfolio alone. There is a huge untapped market, and the opportunity to grow remains constant. As we continue to grow in this area, we’re also actively exploring opportunities to expand into new categories in the upcoming fiscal year,” Gupta said.
KRBL recently expanded its product range by venturing into the realm of spices with the introduction of the India Gate Classic BiryMasala Range. This new line assures an authentic biryani experience at home and is available in three variants: Hyderabadi, Lucknowi, and Kolkata Biryani Masala. The range was launched in Modern Trade stores and on various e-commerce platforms.
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