In our country, the domestic consumption is increasing every year nearly at 4 percent. The unorganized sector is also converting to the organized sector at a high pace. This will keep boosting the basmati market especially the organized sector in future also. Presently in India we have local brands which caters major share of basmati rice market. But in changing scenarios, we expect the conversion of this business to few major companies or super marketing chains. This will give a tough competition to the local players and the margins will reduce.
“We have developed our clientele in all basmati segments. We export to the Government of different countries in their brand. We also do good export business in private labels. We also positioned our own brand Kasturikka and Garimaa around the globe. We also export in more than 62+ countries a few specific varieties of non-basmati. This way we are better positioned in export. In domestic, now we are entering the market on serious grounds”, states Rahul Mittal, CEO, BLV.
“The becoming of our first brand Kasturikka has been noteworthy. In the year 2008, he installed the first mega project was installed with a Japanese technology in Ferozpur, Punjab, with the name of BLV Exports. From there, the brand Kasturikka began its journey and now has grown up to be a widely known brand expanding its reach to more than 25 countries.
Overcoming the Challenges
The Basmati market in India is a very sensitive market as its profitability majorly depends on the generation of broken during the processing. The Farmers are suggested by the institutions for
getting fast and more yield from their farms. This increases the cracks in the grain. The weather is also becoming hot day by day and the temperature required during the maturity of grain is not supportive. Gulf countries are major consumers of basmati rice and it also contributes majorly in our export figures. In the present political situation, this business is suffering due to uncertainty on payment issues. Another big issue is of chemicals and pesticides residue in rice, which is a result of maximizing yield by the Indian farmer.
The lack of clarity on market committee tax, the delay in NGT policies are such issues which are also creating an environment of suspense for the manufacturer in this trade. The new bill has been initiated by the central government without having proper infra to support this seasonal business in states. Being a seasonal business, this remains labour oriented. The availability of labour is becoming thin day by day. The Corona virus has also impacted badly. To overcome this issue, a lot of efforts are being done in the form of mechanization.
We have a “State of Art” modern plant in Punjab state with a milling capacity of 30TPH
“To counter all above we are continuously reducing the input expenses by optimizing the efficiencies. We have a “State of Art” modern plant in Punjab state with a milling capacity of 30TPH. Besides, it also has a 25TPH grading sorting facility. We objectively do aging of paddy and rice for which we have our own storage capacity of 100,000 MT of rice and paddy. We pack all types of rice in house, this includes – steam rice, parboiled rice, raw rice and brown rice. Apart from rice we have Sugar, Gram flour, Turmeric powder, Flattened rice, Semolina and many other in our product basket under the same brand name”, says the CEO.
Making Future Projections
BLV is a prominent player in Indian domestic markets and in line with the global growth strategy. They have always implemented new initiatives in sales and marketing, manufacturing, supply chain and Research & Development and constantly aim at enhancing our market share through "Value Differentiation". The Company embarked its journey in 1991 as Bhagwati Rice Mills. Then they expanded and started with another organization as Bhagwati Lacto vegetarian Exports in 2008 (mega project approved by Govt. of Punjab.) Equipped with ultra-modern technology and machinery imported from Satake Corporation Japan and with a parboiled stainless steel Sella plant, they are now one of the biggest exporters of rice in India.
“At BLV our vision extends well beyond commodity sales. That is the primary reason why we are way ahead of a commodity. We are in a business of an item that is staple food to half of the world's population. We are working on the domestic market with a target of doubling the quantity by next year. This has been targeted by increasing our distribution channels”, concludes the CEO.