GRM Overseas hit an upper circuit of 5% at Rs 1950.90 after the company said its subsidiary, GRM Foodkraft, has entered into an agreement with Walmart to place its products in Walmart stores.Starting April 2021, GRM Foodkraft's products will be available in Walmart stores across tier 1 and tier 2 cities.
The partnership with Walmart will further strengthen the company's presence in domestic market and is expected to drive the top line growth and market share in the coming years. This is an important breakthrough for GRM since Walmart has very stringent pre-qualification requirements for approval of its suppliers/vendors for purchasing any products. In order to get vendor approval from Walmart, the products must demonstrate the requisite quality and safety standard and must be in compliance with domestic requirements and regulations.
Going forward, GRM will continue to focus on diversifying from private label basmati rice offerings to high margin own brands, specialized and value-added products, and adding value through products differentiation.
GRM Overseas engaged in the business of processing and sale of almond kernels, paddy, clove, pista, rice, and wheat. The company markets their products under the brand name Kamdhenu and Chef and exports basmati rice to Saudi Arabia, Europe and other countries.
On a consolidated basis, the company posted a 24.4% rise in net profit to Rs 5.92 crore on a 93.8% jump in net sales to Rs 213.47 crore in Q3 FY21 over Q3 FY20.
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