Ahmedabad-based Adani Wilmar has launched its basmati rice brand under the name of Fortune Basmati Rice in Pune. This is a part of company's plan to extend its flagship edible oil brand Fortune into other commodities like pulses, besan and nuggets. The company, on an average, spends about Rs 200 crore to Rs 250 crore in capacity expansion every year.
“We have a wide variety of basmati to suit every budget and requirement, starting from the new crop traditional basmati rice for stocking up for whole year to assorted packs of Aged, Steamed & Parboiled basmati. Besides, we will also be offering non-basmati range to our customers. To make our rice products available to every consumer we have partnered with a strong and experienced distribution partners across India," says Angshu Mallick, COO, Adani Wilmar.
The products will pushed through Adani Wilmar’s existing network of one million retail outlets across the country.
According to Mallick, Maharashtra is a largest consumer of rice in India followed by Gujarat. India produces over 40 lakh tonnes of rice every year out of which 38 lakh tonnes is being exported and 12 lakh tonnes of rice is consumed domestically. The total rice market of India is of Rs 50, 000 crore. The company exports its products to 19 countries in the Middle East, South East Asia and East Africa.
The company has a target of producing one lakh tonnes of basmati rice in the next two years. It has rice toll units in Karnal, Gharaunda and Kaithal in Haryana, Chhata in Mathura and Delhi for manufacturing and processing. Fortune Basmati is packed in high quality material to serve the same delicious taste round the year. Fortune Basmati Rice Range is available in 1, 5, 10, 20 and 25 kg SKUs.
The company's revenue stood at Rs 17,300 crore in FY14. The company, which is a 50:50 joint venture between Adani Group and Wilmar International of Singapore.
However, the prices of basmati rice have come down this year due to increased production and lower exports. Iran, who purchases about 40 per cent of the basmati rice sold in the international market by Indian exporters, has banned the rice imports. Iran has been charging an import duty on rice (basmati and non-basmati) to safeguard the interests of farmers in that country. This was lifted once the local crop was consumed.
Last year, the import duty was raised from 22.5 per cent to 40 per cent in July; the move was rolled back in December. This year, however, Iran banned such imports. Last year, the average realisation was $1,400 a tonne; as of now, the price stands at about $900 a tonne.