Radikal aims to double turnover to Rs 1,000 crore by '14 via expansion
Friday, April 19, 2013 08:00 IST
Radikal Overseas, one of the leading growers and exporters of premium basmati rice is eying a turnover of Rs 1,000 crore by 2014 from the estimated 2012-13 turnover of Rs 550 crore.
The company hopes to garner this by working to increase the pan-India distribution and exports. It aims to double its distribution strength from 80 to 160 this financial year and strengthen its presence in tier-II and tier-III cities. The setting up of dedicated outlets to market the range of basmati rice is also on the cards.
Of the revenue of Rs 550 crore for 2012-13, export earnings from Europe, North America and Africa amounted to about 75 per cent. For the last four years, Radikal has been exporting to 35 countries and is likely to touch 65 locations by the year-end.
It recently teamed-up with NMC Trading, a division of NMC Healthcare, to introduce its premium basmati rice in the United Arab Emirates, where it plans to export about 8,000 tonne of basmati rice. It has also devised a promotional campaign to ensure brand visibility.
“Rice is a staple diet across India. In this phase of food inflation and economic slowdown, Radikal has seen no impact on sales. In fact, the demand is on an upward trend,” Uday Nayak, general manager, sales and marketing, Radikal Overseas Pvt Ltd, told FnB News.
“Moreover, there is considerable scope for rice processing and the development of value-added rice products. However, the challenge is to handle the fluctuations in prices. Currently, all our markets are growing at a good pace, and we are looking to further augment our presence,” he said.
“Going by the considerable competition in this space, for us the attractive packaging, consistent quality and low-fat basmati rice are the strengths,” Nayak added.
He said, “Its manufacturing facility in Garh Mukteshwar, Uttar Pradesh, has a production capacity of around two lakh metric tonne, and we are planning to increase it to approximately 4.8 lakh metric tonne per annum. The entire plant is completely geared from procurement to storage, machinery to equipment and milling to final packaging.”
The company has a variant called Aqua Mist Premium Basmati Rice, which is seen to be the fastest-growing product. Others in the Radikal range are Pristine Traditional Basmati Rice; Apica Premium Rice, and Morvarid Premium Sella Basmati Rice. All these are made available on the shelves of modern retail outlets, including Reliance, Spencers, More and Vishal among others.