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Dunar Foods receives Rs 124 crore funding; to launch 4-5 new brands soon
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Friday, 16 March, 2012, 08 : 00 AM [IST]
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Manjushree Naik, Mumbai
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Dunar Foods Ltd, a north India based basmati rice company, has received investment - Rs 74 crore from International Finance Corporation (IFC) and Rs 50 crore from TVS Capital - for funding expansion plans and introducing new brands in the market within a month.
According to a spokesperson from the company, most of the funding will be used to buy the necessary machinery from Germany and the US. She told FnB News over telephone, "None of the basmati rice processing equipment is manufactured in India, we need to procure them from abroad."
The company's expansion plans include installation of new manufacturing and processing units after procurement of machinery from abroad, increasing storage capacity and introducing new packaging lines.
Apart from its premium brand Legacy, the company has currently three other key brands in the market - Festiva, Elonga and Nutritia. The company spokesperson states, "We have plans to launch another 4-5 small brands within a month as all the necessary approvals are in place and the manufacturing can begin soon."
While 50 per cent of the products of the company are for domestic consumption, the rest are exported to most of the European countries, the UAE and few other nations. As for the growth in the market, the spokesperson informs, "The growth depends upon the awareness among farmers about how profitable it is to grow the basmati variety than any other rice types. The farmer's role is key."
She adds, "The growth has been steady over the years, even though there have been reports about countries like Pakistan and Thailand being also in the exports' race. In fact, Pakistan has imported basmati rice sometime back so it is not as big a threat as it is perceived to be."
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