Best Foods aims to double domestic basmati sales

Best Foods, one of the largest Indian basmati rice exporters, is looking at doubling its share in the domestic market in the next four years.

The company currently records about 75% of its revenue from the international market while the balance comes from the selling the grain locally.

“The opportunity in the domestic market too is growing. In the next three to four years, we see our business mix changing significantly. We are aiming at 50% revenues from the international market and the balance from the domestic market,” Aayushman Gupta, the company’s business director, said.

Best Foods is also looking to augment its capacities from the current 45,000 tonne per month to meet the growing demand. “Though the specifics of the expansion are still being worked out, we see it becoming imminent,” Gupta said.

Citing a latest report by the market research firm AC Nielsen, he said the domestic market for basmati rice is estimated to see an annual growth of 20-25% thanks to rise in disposable incomes, modern retail boom and demanding consumers.

The company, which has reported revenues of Rs1,322 crore for the fiscal to March, expects to grow 20-25% a year and derive improved contribution from the domestic market.

Gupta said Best Foods sources the finest basmati rice straight from the foothills of Himalayas and other prime rice growing areas in the northern region of the country and follows stringent quality control systems in its milling facility near Karnal.

The company that exports to over 50 countries said the export market is growing 15-16%. Further, Gupta said the company, which is currently deriving negligible revenues from the unified brand ‘Best’, expects at least 35% revenues from branded sales over the next 3-4 years. At present, institutional sales dominate the company’s revenues.

The company, which sources paddy through conventional sources including mandis in villages, also markets non-basmati rice.

“There are about 4,000 varieties of rice grown in India. Of the 90 million tonne rice consumption in India, the share of basmati is about 8-10%. For us, of the 25% revenues we get from the domestic market, about 25% is from non-basmati varieties.

However, we see growth coming from the branded basmati sales, the market for which is growing at about 25-30%,” Gupta said.