nse: krbl
nse: krbl
Introduction
KRBL is the standard symbol of KRBL Limited, a foremost Indian company engaged in rice processing and marketing. The company is principally known for its flagship brand ‘India Gate Basmati Rice. KRBL Limited was established in 1889 and remained headquartered in Noida, Uttar Pradesh, India, and its shares remain traded on the National Stock Exchange of India (NSE).
As I know, in Sep 2021, KRBL Limited (NSE: KRBL) was trading at ₹ 257.65 per share on the National Stock Exchange of India. However, please note that stock prices are subject to constant fluctuations, and current values may differ. Checking the latest market data or consulting a financial advisor for any investment decision is always recommended.
Some Information about NSE
The National Stock Exchange of India (NSE) remains the primary stock exchange of India, located in Mumbai. It was founded in 1992 and had a market capitalization of over $2.8 trillion as of September 2021. NSE is known for introducing electronic trading in India and has significantly transformed the Indian capital market.
NSE provides a platform for trading various financial instruments, including equity derivatives, currency derivatives, and debt securities. It runs on a fully automated electronic trading system known as NEAT (National Exchange Automated Trading), which enables fast, transparent, and efficient trading.
NSE significantly impacts the Indian economy, as it facilitates the mobilization of savings and investment, thereby contributing to economic growth. It has also been instrumental in increasing transparency and reducing transaction costs in the Indian capital market.
nse: krbl – Creating Sustainable Product Portfolio
KRBL Limited, listed on the National Stock Exchange of India (NSE) under the symbol KRBL, is working to build a sustainable product portfolio. As a leading Indian rice processing and marketing company, KRBL takes various initiatives to promote sustainable practices in its operations and supply chain.
One of the major initiatives taken by KRBL is to promote organic farming practices. The company works with farmers to encourage them to adopt organic farming practices, which help preserve the environment and produce high-quality rice.
KRBL has also invested in renewable energy sources like solar power to reduce its carbon footprint. The company has installed solar panels in its manufacturing facilities, which has helped reduce dependence on conventional energy sources.
In addition, KRBL is focusing on developing rice varieties that require less water and have higher yields. These varieties of rice are not only beneficial to the farmers but also help in conserving water resources.
In short, KRBL’s efforts to build a sustainable product portfolio demonstrate its commitment to promoting sustainable practices throughout its operations and supply chain, which positively influence the environment and society.
Why has India Gate Basmati Rice entered the Health Food Segment?
In 2020, there was increased awareness of immunity-boosting products, which boosted the health product portfolio, as reflected in our own ‘Health Products Portfolio,’ which saw a growth of over 20 percent by Q3FY20. Hence, we entered into the healthy food segment, addressing the new lifestyle revolution and making it possible. We have launched products like India Gate Basmati Brown Rice, India Gate Non-Basmati Brown Rice, and Quinoa. It has helped the company win a new customer segment while expanding into the packaged rice segment.
Although health products were available in the market and consumers widely recognized the health, hygiene, and safety aspects of branded products, more and more consumers were opting for branded rice from established players. It has helped India Gate Basmati Rice to stay ahead of the curve and beat the competition from the unorganized sector.
What is the Distribution Strategy for these Products?
Considering the rapidly growing e-commerce segment, we have entered into strategic tie-ups with leading B2B and B2C e-commerce players such as Grofers, Big Basket, Flipkart, Amazon Pantry, JioMart, Udaan, and Jumbotail. We are seeing over 45 percent growth in e-commerce sales (year-on-year). From an organization that was a pioneer in the wholesale commodity business, we are today transforming into a champion of dynamic retailing.
For our existing products (brown rice) available for the last 4-5 years, the primary contribution to total sales is regular business. Modern business sales are the next contributor after e-commerce. However, e-commerce is now the fastest-growing platform for this segment.
What about Marketing Strategy?
India Gate Basmati Rice offers products that make the purchase more meaningful to the customer. Brown Rice Weight Watch Special, Unity Biryani Rice, and Avasar Special India Gate Classic are suitable for basic needs and not regular shelf options. Through these disruptive product interventions, we stand apart from most of our competitors and take the conversation away from price while delivering value and customer satisfaction. Also, we are constantly learning, developing, and introducing new products per the requirements and geographies.
Please give us an overview of the industry in the year of Covid.
The overall business environment during the year remained challenging due to the pandemic’s outbreak and changes in the regulatory landscape in both domestic and international markets. However, thanks to our substantial brand value and wide product range, we have delivered another year of commendable performance. India’s basmati rice market (total) remains pegged at 2.5 million metric tonnes (MMT), of which the share of non-branded basmati rice remains pegged at 1.5 MMT. Of the total branded basmati rice market of 1 MMT, India Gate has about 35 percent market share, the highest market share for any company in combined urban and rural areas in FY20. India Gate today has a market share of 38.6 percent in the packaged basmati rice category. The total size of the packed basmati rice industry is around 1 MMT.
How were the last Quarter and 2020 for you?
The strength of our brands underpinned our performance during the Quarter (October-December 2020). The focus during the year was on further enhancing the visibility and worldwide reach of our portfolio; we have achieved this through consistent campaigns and outreach programs. On December 31, 2020, our net debt stood reduced by Rs 373 crore with a 0.12x improvement in net debt to an equity position. We anticipate continuing this trend, further strengthening our current balance sheet and cash flow. The company has been on a growth trajectory for almost a decade and is showing steady improvement in volume and value addition. We have grown practically 3.25 times in the last ten years only.
The pandemic benefitted India Gate due to increased consumption at home and the trend of trying out new restaurant-like cuisines. India’s favorite rice brand – the consumer pack, has seen healthy growth in sales. Also, due to the awareness of buying packaged and hygienic products, and the trend of new customers, India Gate has achieved the highest-ever consumer pack sales in FY 2020.
Conclusion
KRBL Ltd, makers of the leading rice brand India Gate, is looking to expand the domestic and export footprint of its premium. Regional non-basmati varieties of Kolam, Sona Masuri, and Gobindbhog under the India Gate brand.
Anoop Kumar Gupta, the joint director of KRBL Ltd, said the company plans. To increase the production of nutritious rice bran oil in the next few years. And market it under the India Gate brand, for which it may set up a refinery. Business-standard.
The company currently produces about 50 tonnes of rice bran oil per day.
