KRBL Ltd Expands Portfolio, Ventures into Edible Oils with Rice Bran Launch
KRBL Ltd's strategic shift towards diversification and health-oriented products is evident in its entry into the edible oils market, focusing on rice bran oil, and its expansion in the non-basmati rice sector. With ambitious goals and a clear vision, the company navigates challenges to potentially transform India's agri-food industry.
26/02/2024 (The People Network) - In an ambitious move to diversify its portfolio, KRBL Ltd, the powerhouse behind the renowned India Gate brand, has set its sights on the burgeoning edible oils market. With an announcement that came as a surprise to many, Ayush Gupta, the Business Head (Domestic) of KRBL, detailed the company's strategic shift towards introducing rice bran oil by next year. This decision is not merely an expansion but a bold step into a domain currently led by giants such as Saffola and Fortune. The plan? To carve out a significant niche in the healthy edible oils segment, aiming for sales of 20,000 tonnes and revenue of Rs 200 crore within three years.
A Strategic Diversification
The foray into edible oils represents a significant pivot for KRBL, traditionally known for its basmati and non-basmati rice offerings. Gupta's announcement sheds light on the company's vision to not just diversify, but to innovate within the health-focused food segments. By opting for rice bran oil, known for its numerous health benefits, KRBL is tapping into the growing consumer demand for healthier cooking options. The initial phase will see the company outsourcing the refining process, a pragmatic approach to navigate the complexities of establishing a foothold in a competitive market.
Investing in Non-Basmati Rice Expansion
Parallel to its entry into the edible oils sector, KRBL is doubling down on its commitment to the non-basmati rice market. The company has announced plans to invest Rs 200 crore in developing two new processing units located in Karnataka and Madhya Pradesh. This investment aims to double its sales volume of non-basmati rice by 2024, building on the momentum from selling 15,000 tonnes during the 2022-23 fiscal year. With an ambitious target to increase sales to 35,000 tonnes in the 2023-24 fiscal year, KRBL is positioning itself as a major player across multiple fronts in the agri-food sector.
Challenges and Opportunities Ahead
While KRBL's diversification strategy appears robust, it does not come without its challenges. Entering the edible oils market, particularly rice bran oil, places KRBL in direct competition with established brands that have dominated the space for years. Achieving a target of 20,000 tonnes in sales and generating Rs 200 crore in revenue within three years will require aggressive marketing, strategic partnerships, and consistent quality. However, the company's successful track record with basmati and non-basmati rice, combined with a clear focus on health-conscious consumers, presents a unique opportunity to disrupt the market.
In conclusion, KRBL Ltd's venture into the edible oils sector, alongside its expansion in the non-basmati rice market, underscores a strategic shift towards diversification and health-oriented products. With ambitious targets and a clear vision, the company is poised to navigate the challenges ahead, potentially transforming the landscape of India's agri-food industry.