India Gate Basmati Rice Unveils Ambitious Expansion Roadmap
India Gate Basmati Rice Unveils Ambitious Expansion Roadmap

India Gate, renowned for its premium quality Basmati rice, has recently unveiled its latest offering: Classic Biryani Masala. This move comes as a response to the enduring passion for Biryani across the country, aiming to deliver the quintessential "Classic Experience" to families nationwide. With this category expansion, India Gate aims to also enter into the rice bran oil category.

The launch of Classic Biryani Masala is just the beginning, as India Gate plans to introduce multiple variants catering to regional tastes. From the Bhuna Gosht Biryani of Kashmir to the Chettinad Biryani of Tamil Nadu, the brand seeks to cater to diverse palates across the country.

India Gate’s Retail Strategy

According to United Group of Food Consultants, industry data suggests that the biryani market in India is estimated to be approximately Rs 1,500 crore in the organized sector and Rs 15,000 crore in the unorganized market.

Kunal Sharma, Head of Marketing and Business Head-Modern Trade & E-Commerce, India Gate Foods, KRBL, the parent company of India Gate, shed light on the strategy behind this exciting launch, said " India Gate recognizes the enduring passion for Biryani across the country and launching Classic Biryani Masalas under our flagship variant – India Gate Classic is an attempt to deliver the quintessential “Classic Experience” to families. This offering invites consumers to savour authentic-tasting biryani, fostering cherished moments of togetherness within the comfort of their homes.”

In terms of retail strategy, India Gate is prioritizing Modern Trade and E-commerce channels for the initial phase of the launch. Sharma says, “Our launch strategy prioritizes Modern Trade & E-commerce channels, providing consumers direct engagement with our offerings. Following this initial phase, we envision leveraging our expertise in Traditional trade in subsequent stages. Other variants will also be seen releasing, post this initial launch phase.”

Tackling Unbranded Basmati Rice

According to Basmati Rice Market Report for the year 2023, the basmati rice market in India reached around INR 485.1 billion, and it is predicted that the revenue will cross the mark of INR 500 billion by the end of 2030.

Today, branded Basmati Rice segment faces heavy competition from the unbranded or loose basmati rice segment. India Gate has launched multiple brand campaigns such as “Basmati Rice Se No Compromise” to spread awareness against loose basmati rice market.

Elaborating on the impact of these campaigns, Sharma said, “Our recent Brand Health Study following ‘Basmati Rice Se No Compromise’ Campaign revealed notable shifts in consumer behavior. Habitual repeat buying for India Gate has increased from 56 percent to 65 percent over the past year, contrasting with a decline observed in unbranded basmati rice purchases. Additionally, our campaign has helped increase the brand equity of India Gate by 220 bps while there has been a drop in the equity of unbranded rice by 490 bps (source: Ipsos Report | March 2024).”

Growth in Business

KRBL Limited is expecting to generate Rs 3,000 crore in value by FY28 in the consumer packaged basmati rice segment, as compared to Rs 1,450 crore in FY23. Looking ahead, KRBL Ltd. is optimistic about the growth prospects of its rice business in India. With domestic business growing at 14 percent year-on-year, the company has set ambitious goals for the coming years.

Sharma said, “Our domestic business has been growing at 14 percent Y-O-Y till quarter ended in December. With ongoing infrastructure expansions and portfolio diversification, we have set ambitious goals for KRBL to achieve within the next 3-4 years. Additionally, KRBL is focused on expanding its presence both domestically and internationally. Recent data underscores the company's market leadership in the Basmati Rice segment.”

Expansion Plans

The introduction of Classic Biryani Masala marks another milestone in India Gate's journey to redefine culinary experiences for consumers across the country. Additionally, KRBL has planned to open three new manufacturing plants in Gujarat, Karnataka, and Madhya Pradesh with a combined investment of Rs 250 crore. The Gujarat plant will be operational in June this year.

Sharma elaborates, “KRBL Limited has intensified efforts to expand its presence in India, resulting in notable revenue and market share growth. Recent data from December 2023 underscores this growth momentum, reporting a market share of 37 percent in general trade and 40 percent in Modern Trade channels, further consolidating our leadership position in the Basmati Rice market. While maintaining a steadfast focus on Basmati Rice, KRBL is actively diversifying into new product categories.”

Sharma further said, “The introduction of Biryani Masalas signifies our initial step in this strategic direction. Looking ahead, we are poised to enter the edible oils market within the current fiscal year, with a commitment to pursue further opportunities on the horizon. With its commitment to quality and innovation, the brand continues to delight taste buds and create memorable dining moments for families nationwide.”

Stay on top – Get the daily news from Indian Retailer in your inbox
Also Worth Reading