Project on Rice Industry
SUMMER PROJECT REPORT
BASMATI RICE INDUSTRY
Made by:
Vinamra Bansal Infinity Business School EXECUTIVE SUMMARY
The following research report relates to the basmati rice industry of India. India is the second largest producer of rice in the world. But the contribution of Basmati rice in the overall rice production is very minute. India and Pakistan are the only two countries that hold the patent to produce Basmati rice in the world. Basmati rice is known for its aroma and nutlike flavour. When cooked, it swells only lengthwise, resulting in long slender grains that are dry, separate and fluffy. The production process of Basmati rice is the most critical part because if the rice gets broken it will not command premium price in the export market. Therefore, utmost care has to be taken while producing it so that the grain is long enough to command premium price. For this a company needs to have state of the art production facilities in place. The maturity period also plays a key role because if the maturity period is long the rice produced will be of a superior quality. The demand and supply of Basmati rice is constantly increasing over the last few years. With the introduction of PUSA 1121 to the Basmati rice family, favourable demographics of India and demand for new markets such as China and Mexico it will increase further in the coming years. On the other hand more realizations from producing Basmati rice to farmers, increasing awareness and increase in demand from the foreign countries will result in increase in the supply as well. The top four players in the organized market are REI Agro, LT Foods, KRBL and Kohinoor. REI Agro follows fully integrated model whereby it does all the operations from procurement of paddy to ultimately selling it to the final consumer. On the other hand the rest three players besides producing rice also rely on a bit of trading. These players concentrate more on branding unlike REI Agro who is more of a volume player. Both
BASMATI RICE INDUSTRY
Made by:
Vinamra Bansal Infinity Business School EXECUTIVE SUMMARY
The following research report relates to the basmati rice industry of India. India is the second largest producer of rice in the world. But the contribution of Basmati rice in the overall rice production is very minute. India and Pakistan are the only two countries that hold the patent to produce Basmati rice in the world. Basmati rice is known for its aroma and nutlike flavour. When cooked, it swells only lengthwise, resulting in long slender grains that are dry, separate and fluffy. The production process of Basmati rice is the most critical part because if the rice gets broken it will not command premium price in the export market. Therefore, utmost care has to be taken while producing it so that the grain is long enough to command premium price. For this a company needs to have state of the art production facilities in place. The maturity period also plays a key role because if the maturity period is long the rice produced will be of a superior quality. The demand and supply of Basmati rice is constantly increasing over the last few years. With the introduction of PUSA 1121 to the Basmati rice family, favourable demographics of India and demand for new markets such as China and Mexico it will increase further in the coming years. On the other hand more realizations from producing Basmati rice to farmers, increasing awareness and increase in demand from the foreign countries will result in increase in the supply as well. The top four players in the organized market are REI Agro, LT Foods, KRBL and Kohinoor. REI Agro follows fully integrated model whereby it does all the operations from procurement of paddy to ultimately selling it to the final consumer. On the other hand the rest three players besides producing rice also rely on a bit of trading. These players concentrate more on branding unlike REI Agro who is more of a volume player. Both
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