– Ayshwaria Lakshmi
AMK Krishna, one of the leading rice brands in India, has plans to install a new factory in two years in Kangeyam, Tamil Nadu as to meet the demand in both domestic and international markets. The company exports contributed to 15 percent of total revenue in 2019 and 23 percent in 2020. This factory is expected to increase the capacity five times more than what they have and in the international standards.
“We also have plans to increase our sale percentage in the international markets,” said D Arun Chandran, Managing Director, AMK Krishna. “We will penetrate our brand deeper into the existing markets. As of the newer markets, the highest rice consuming markets like Sri Lanka, we get orders for the food grain exporters in these regions,” regarding the geographical expansion plans, Mr Chandran added.
He went to tell us about the current reach in the international market wasn’t a smooth process. It started as a gradual process, where would do one or two consignments at a time. The company would take part in food expos and others like it to get visibility. This recognition helped them infiltrate into the international markets. Currently, the brand has a presence in Canada, the United Kingdom, France, Qatar, Dubai, South Africa, and Australia.
AMK has its market segment split into 5 – Retail stores, Wholesale, Institutional sale, Export, and private labeling segment. The Institutional sale is about 11 percent of the total revenue.
“This is a difficult segment to invade and hold the customer. There are more factors present in this, like the output weight of the end product and credit terms. Holding a relation for over two years a tough task in this segment.” said Mr. Chandran.
The needs of this segment would differ from the rest, as they would need a good product at the lowest price. Despite the factors like output weight of the end product and credit terms, the biggest players in this are the pricing. With the rice industry, a very vast industry with more players, it is difficult to match the needs and penetrate deep into this segment. The other issue is a particular brand is famous only in a particular region in this industry.
Even with AMK being one of the leaders in the industry, the unorganized factor of the industry adds to the difficulty. Despite all this, the company has one of the best supply chains in the industry. Mr Chandran and the team made sure they could provide rice to all their customers during COVID lockdown.
Interested hotel owners and chefs across the world looking for collaboration and sampling can reach out to Mr. Arun at +91 +91 98427 20723 or email at firstname.lastname@example.org.
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