Satnam plans unit in UK

Satnam Overseas Limited (SOL) will set up a rice milling and processing plant in the UK.

The investment in the project is estimated to £4-5 million. SOL is exploring new markets in Asia, especially China, Malaysia and Thailand, and aims to extend its reach in the mainstream global basmati market.

SOL plans to launch ready-to-eat packed food like 'paranthas', cooking sauces and curry pastes in India and overseas besides pushing its core product, branded basmati rice.

SOL established a foothold in the Australian market after its basmati was accepted by the supermarket chain Coles.

The FMCG company Tiger Brands of South Africa started marketing SOL's 'Kohinoor Heat & Eat' products recently.

The Malaysian Airlines in-flight catering business and Pizza Hut emerged as new buyers as well.

SOL launched its products last year in countries like Syria, Canada, Zambia and Hungary in addition to Singapore.

SOL's total branded sales in the financial year 2003-04 was Rs 185 crore, up from Rs 133 crore the year before.

Its share in the domestic basmati market was 35 per cent, up 3 per cent from the year before. It aims to increase share to 38 per cent in 2004-05.

SOL has raised the limit of investment in the paid-up capital of the company by foreign institutional investors, non-resident Indians and overseas commercial borrowingsx to 51 per cent from the existing 24 per cent.