2018 Presentation Repositioning the GRM Identity Transitioning into a truly global brand www.grmrice.com
The GRM Brand today … • A leading exporter of rice to the Gulf region, with a majority of exports concentrated in this region • Exporting high quality traditional basmati varieties of rice to USA, UK and other European countries Moving towards the next • Launched our own brands during FY2018 which are sold at large retailers like ASDA phase of growth… (Walmart UK) ,T.J. Morris (UK),Albert Heign (Holland), Metro (Poland) • Favourable regulatory changes and an improved operating environment in the industry have provided a boost to players with strong market positioning and balance sheet like GRM • Less than 10% of Revenues come fromValue Added Products currently Redefined Value … Repositioning the GRM Brand Proposition • Diversifying from traditional basmati rice offerings to Integrated Business high margin own brands, specialized and value added Model products Niche Product • Targeting value added and ready to eat health products Market in Europe and the US where there is significant demand for such products Increasing Market Traction • Focusing on supplying specialized / rare rice varieties and health oriented ready to eat products with Enhanced R&D www.grmrice.com signature recipes 2 Capabilities
Table of Contents Business Overview & Strategy 1 4 - 13 14 - 15 Industry Overview 2 Operational Highlights 16 - 17 3 4 Financial Performance 18 - 23 www.grmrice.com 3
Business Overview & Strategy www.grmrice.com
GRM Overseas: At a Glance A Wealth of Export Oriented Global Standards Experience Around 90% of our Revenues Stringent proactive quality Over 40 years in the Rice control procedures in place in are generated from exports to business with a legacy of accordance with International the Middle East; we are also supplying products of the requirements highest quality focused on exports to US & UK Moving up the Diversified Basket Robust Financial Value Chain of Rice Products Performance Focused on high quality value Revenues of INR 9,442 mn in A variety of rice offerings added offerings such as FY2018, an increase of 60% catering to a mix of consumer branded rice varieties, YoY, Net Profit of INR 119 preferences Basmati, Specialised branded basmati, organic rice mn, growth of 112% YoY Products and Value Added products and ready-to-eat Products “GRM has always believed in delivering the best. We are constantly focused on raising the standards…” www.grmrice.com 5
Strategic Approach Our Targets Diversification of export mix To become one of India’s • distinguished suppliers of : High grade branded o basmati rice for western Expansion in market reach through a markets targeted marketing approach Quinoa, rice based and o other organic ready to eat health products Improvement in realisations through • To successfully launch our branding and differentiation efforts own brand of ready to eat health products in European markets and achieve positive synergies within next 18 months Premiumisation of our product portfolio Focused on building our brand strength and adding value through product differentiation www.grmrice.com 6
Strategic Roadmap to Business Transformation • Increase branded / own labels of rice; currently about 90% of the rice exported is private label Premiumisation of Product • Targeting Europe and US markets for premium products compared to the Middle East, Iran, etc. which Portfolio are highly price sensitive • Increase sales of specialised rice varieties like red rice and black rice (high margin products) as well as indigenous varieties of Indian Folk Rice from Bihar,West Bengal, etc. Focus on Value Enhancement Products • Focus on Value Added products such as ready to eat products, organic products, Quinoa and exotic seeds, etc. which are popular in advanced health food markets like US and Europe Intensify marketing for own brands of basmati rice and the newer range of high margin value added • Proactive Branding & products Marketing Gaining traction in the western markets through our Sales offices located in the UK and US • • In house R&D team with prior experience in UK and US regions • Focused on developing unique ready to eat rice recipes and health foods that appeal to the Focus on R&D International markets • Focused on reinventing our product basket in line with market trends www.grmrice.com 7
Product Portfolio Market Segment Product Offerings Key Customers Basmati Red Rice, Black Rice, Smoked Rice, Specialised Folk rice varieties Targeting speciality stores across Europe. Organic Rice, Flax and Quinoa Seeds Value Added Increasing customer preferences for health Ready to eat health products and Retorts food products in European markets. Strategically moving towards more value add products www.grmrice.com 8
Recent Launches • Objective: To bring natural foods grown locally by farmers who do not use chemicals to affect the product yield Target Market: The fast growing health conscious population in particularly Europe / USA / Australia • Strategically moving towards more value add products www.grmrice.com 9
Integrated Operations Basic Operations Integrated Operations Head Rice Broken rice contributes 10% of Rice our Revenues Broken Rice Products & By-products Husk Internally used as a fuel for Boiler Leveraging our operational capabilities through effective utilisation of by-products Bran Bran Oil Wastage 5% Enhancing value and minimising waste through integrated operations www.grmrice.com 10
Infrastructure and Capabilities 30 containers of 23 Tons each Production and Shipping capacity per day • Integrated and efficient procurement processes due to: • Strong and long standing relationships with farming communities • Proximity to key rice cultivation zones Milling Plant • State-of-the-art factory equipped with three milling plants, each with a capacity of 20 tons per hour with shipping capacities located at Mundhra port • Labs are well-equipped with machinery of international caliber and include moisture meters, lab de-huskers, electronic Vernier Calipers, precision electronic weighing scales, paddy separator and lab-polishers • Equipped with the comprehensive systems that ensure ongoing fumigation, maximum production from ground, optimal moisture & humidity and protection from all forms of infestation Huskers One stop shop: Centralized production facility for all the operational requirements www.grmrice.com 11
Focus on Governance, Automation and R&D Focused R&D Effective Customised ERP Capabilities Governance Systems Focus on increased objectivity R&D Team in Europe to shape Working towards automated in management decision making the value added product and better integrated reporting and engagements with external portfolio and ready to eat systems to further increase agencies, across the recipes for the targeted transparency organisation western markets Growth and Partner with industry expansion through Profitability and High corporate leading firms across all dynamic business margin expansion governance standards aspects of the strategies business Thinking bigger is the first step to exponential growth… www.grmrice.com 12
Industry Accreditations & Recognitions GMP Certificate HAACP Certificate ISO - 22000 Certificate BRC Certificate Compliant with the highest International Standards www.grmrice.com 13
Industry Overview www.grmrice.com
Industry Overview Indian Export Volumes – MT ‘000 Indian Export Value – INR billion 8,274 293 7,133 276 6,771 6,465 6,335 227 215 204 188 177 169 168 4,046 3,985 3,757 155 3,702 2,906 2014 2015 2016 2017 Apr - Dec 2014 2015 2016 2017 Apr - Dec 2017 2017 Basmati Rice Non-Basmati Rice Basmati Rice Non-Basmati Rice T op 5 Destinations for Export during April – December 2017 Non-Basmati Rice % Basmati Rice % Bangladesh 19.5 Iran 23.0 Benin 10.2 Saudi Arabia 15.7 Senegal 7.0 Iraq 11.3 Sri Lanka 5.9 UAE 9.4 Nepal 5.6 UK 5.3 Guinea 4.9 Kuwait 4.1 www.grmrice.com 15 Source: APEDA
Operational Highlights www.grmrice.com
Operational Highlights Export Volumes (Rice) (000’ MT) Realisation Per Unit (Rs./MT) CAGR 23.4% 1,487.5 6,469 6,419 6,148 1,145.3 5,086 4,586 859.4 760.1 641.9 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 • Export volumes have progressively increased over the last five years at a CAGR of 23.6% • The increase in sales volumes is attributable to: Expansion of our client base in existing locations such as the Middle East ▪ ▪ Growth of the business in US and UK due to targeted sales efforts • The increase in realisations are attributable to: ▪ Expansion of our client base across geographies ▪ Gradual increase of own brands and value added products in the product mix www.grmrice.com 17
Financial Performance www.grmrice.com
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