Exporter Best Food to retail basmati

Best Food International, exporter of basmati rice, is set to enter the retail sector with its packaged brand ‘Best'.

“As more people are willing to purchase rice in a packaged format against the traditional loose format, the rice space in India is growing,” Mr Aayushman Gupta, Business Director, Best Food, told Business Line.

The products will be competitively priced from Rs 45 to Rs 150. Other players in the space include LT Foods, Tilda Basmati Rice, Lal Qila, Kohinoor Foods Ltd, Adani Wilmar (Pilaf) and Amira.

“Based on the experience of consumer usage behaviour, we will be offering rice for specific categories such as health and wellness,” said Mr Gupta. While the bulk of the offering would be basmati rice, 15 per cent will be non-basmati rice under the economy variety, considering that most Indians eat non-basmati rice, said Mr Gupta.

The retail products will be positioned as ‘right value' ones, neither premium nor mass, he added. Initially, the products will be launched in 25 cities. For marketing, Ogilvy & Mather is currently working on a 360 degree strategy, which will include public relations, above the line, below the line as well as online marketing, including promotions in social networking sites such as Facebook.

Of the Rs 4,000 crore rice market in India, 80 per cent falls in the unorganised sector.

The Rs 1,400 crore company has been exporting to 52 countries and supplies to private labels of retail chains such as Walmart in India, Big Bazaar and Reliance. Nearly 75 per cent of the company's revenues come from exports. With entry into the retail space, the company expects 50 per cent of its revenues in five years to come from domestic business. Best Foods has 14 plants in India with a capacity of 45,000 tonnes per month and is growing at a compound annual growth rate of 45 per cent.

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