KRBL Diversifies into Rice Bran Oil, Expands Non-Basmati Rice

New Delhi, Feb 26 (PTI) KRBL Ltd, which markets basmati and non-basmati rice under India Gate brand, plans to diversify into edible oils business by launching rice bran oil by next year, according to a top company official.

The company is also eying to expand its premium non-basmati rice segment and will invest about Rs 200 crore for setting up two processing units one each in Karnataka and Madhya Pradesh in the next one-half-year, the official said.

Speaking to PTI, KRBL Ltd Bussiness Head (Domestic) Ayush Gupta said, "We are diversifying into other products. We are now getting into healthy edible oils especially rice bran in the next financial year."

KRBL will outsource the refining for some time till the company establishes itself in the market in terms of a certain volume, he said.

The rice bran oil is a healthy cooking oil and this market is currently controlled by two major brands Saffola and Fortune, he added.

Gupta said, "It is a challenge that we are taking up. The board has approved the proposal...We are still evaluating and exploring refiners. There are options available in north India, for example, the AP Organics is one of India's largest refiners."

The company is targeting 20,000 tonne rice bran oil sales and a revenue of Rs 200 crore in three years, he said.

At its Dhuri rice processing plant in Punjab, the company is already producing about 40 tonne per day of crude rice bran oil. The same will be outsourced for refining to see if there is merit in terms of quality, he added.

On the expansion of the non-basmati rice segment, Gupta said the company is planning to set up two more non-basmati rice processing units one each in Karnataka (Gangavati) and Madhya Pradesh (near Bhopal) with an investment of about Rs 200 crore in the next one-and-half year.

"Currently, the land acquisition has been completed in both places. Investment in each of the plants will be between Rs 75 to Rs 100 crore," he said.

The company entered into the non-basmati rice segment during 2022-23 with one processing plant at Kandla, Gujarat.

Asserting that the company is bullish about the growth in the non-basmati rice segment, Gupta said about 15,000 tonne of non-basmati rice was sold during 2022-23 fiscal which is expected to increase to 35,000 tonne in the 2023-24 fiscal.

"In 2024, we plan to double the sale volumes of non-basmati rice. The net share of non-basmati rice should be 7-8 per cent of the total domestic revenue," he added.

The company sells three premium non-basmati rice varieties -- Kolam, Sonamasuri, and Govindo Bhog also called Kaima. While all three varieties are available pan India. The south and west are the major markets for the company.

The company sells two-year-old rice of these three varieties and hence, sells at a premium.

Currently, the company has two rice milling units, one in Ghaziabad, Uttar Pradesh and other in Dhuri, Punjab. It has one processing and packaging unit at Barota, Haryana.