What are your projections of the current draught scenario with respect to rice cultivation in India?
I anticipate a drop in about 20% in the production of Rice this year. The production last year was close to 99 million tons. I expect that we will it around 80 million tons this year. However with the buffer stock the government is holding there is no need to panic. We expect to bounce back next year. Due to the combined effect of El Nino and Global warming we have faced a draught this year but this will not be a continued trend. KRBL Ltd. has a very limited focus in the non basmati sector. The Basmati sector is showing a definite upswing. Earlier our focus was on three variants Sharbati, Sugandha and RH – 10, However It is the time now for Pusa 1121. Just because of this variety the paddy production of Basmati is predicted to rise from the currently 4 million tons to 6.5 million tons. What is so special about Pusa 1121?
It is an incredible variety with longer and fore fluffy qualities. It has the longest grain in its category. It elongates 33% after boiling. So much so the Gurdaspur district of Punjab grows only 1121. It gives almost 20 to 24 quintals per acre which is nearly double that of normal Basmati yields. The rice sells for around Rs. 30 per Kg which is cheaper in its category and therefore creates huge demand. Almost 7, 00,000 tons of 1121 was exported to Iran and the figure will reach 1 million tons this year. Other than Europe 1121 is liked in South Africa, Kuwait, UAE, Bahrain, Doha, Australia and Far East. Due to restrictions placed in Article 28 of GATT only traditional basmati varieties are allowed in Europe. With this restriction also being removed soon we will be able to kill exports from Pakistan. Please tell us about KRBL?
KRBL Ltd is the world’s largest rice millers, with the largest manufacturing capacity in the world with over 120 years experience in the industry. The company is the largest Basmati rice exporter and India’s first integrated rice company. As of now the company holds 11% market share of the total Basmati exports from the country. The company has set up 3 state of the art plants-one at Greater Noida and two at Alipur. KRBL also owns the world’s largest, fully integrated rice milling plant at Dhuri, Punjab, with an installed capacity of 125, 000 metric tones per annum; KRBL has established India’s largest continuous process parboiling plant. The company has also set up an ultra-modern plant at Kandla port for the processing of long grain rice. KRBL has a total installed milling capacity of processing 195 mt per hr. which is one of the highest in the world. We are targeting to pick up at least 12% of the total Basmati crop of India this year. We are gearing up to handle 20% of India’s Basmati production very soon. KRBL also owns the largest grain storage facility under private ownership in the country with almost 1.5 million square ft. of covered storage and almost 3.5 million square ft. of open storage. As per AC Nielsen India Gate brand is the largest selling brand in India. Kindly tell me about the current financial scenario and projections?
Last Financial year we had a turnover of approximate 1300 crores with an Earning per Share of Rs. 26. In the first quarter of the current year we have already reached a turnover of Rs. 401 Crores with an EPS of Rs. 12. The projections of this year are a Turnover of Rs. 1600 to 1800 crores with an EPS of Rs. 50. In another four years we expect to see a turnover of Rs. 3500 crores for KRBL.