| Home >> Business Profiles >> REI Agro Ltd |
| Industry |
Food Processing |
| Business Summary |
REI Agro Limited (RAL), set up 11 years ago in Haryana, is a 600-crore basmati rice processing and marketing company. It is an integrated player and undertakes right from contract farming to procuring paddy to drying, de-husking, milling and polishing, colour sorting, grading, inspection, packing, branding, distribution and retailing. RAL has two processing units in North India, with an aggregate capacity of 302400 tonnes per annum. In addition it also operates a 7.5 MW windmill farm at Jaisalmar in Rajasthan. The company sells Basmati rice, in bulk, in the domestic wholesale market and also sells whole-grained Basmati rice under its brands, major being 'Mr. Miller' and 'Al-Tahaan', through a wide network of semi-wholesalers and distributors spread across the country. The company has witnessed a steady topline growth of 43% CAGR over the last three years and its profit margins are better than the industry's.
India being the largest producer and exporter of basmati rice commands a premium over its traditional rivals in terms of price and quality. The total rice market in the country is estimated to be worth around Rs 1, 00,000 crore of which only 10 per cent of the rice is branded. The branded rice sales have taken off in recent years and have been growing at around 15 per cent in the domestic market compared to 5 per cent for unbranded rice. The branded rice sales growth is an impressive 25 per cent in the international market as compared to stagnant sales of unbranded rice. Added to this, of the Rs 3500 crore worth of basmati rice produced, only around Rs500 crore worth is sold in branded form. On the pricing front, Basmati rice prices are expected to increase by Rs 7-8 per kg due to steady export demand supported by lower crop. REI Agro is among the select few companies that have pan-India presence and are likely to reap the benefits of growing penetration of branded rice including basmati. |
| Phone | +91-1274-260126 |
| Contact Address Details |
| Office Address |
#94 KM Mile Stone, NH-8, Delhi-Jaipur Road,
Jaliavas Vill,
Rewari 123401
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