Kohinoor Foods sets a business target of Rs 1000 crore

KOCHI: Kohinoor Foods Ltd. has set an ambitious target of Rs 1000 crore turnover for the current year despite slow pace of growth of basmati rice exports. The company hopes to achieve this by exploring new markets and expanding its assortment of food products to domestic market.

Despite government restrictions on basmati rice exports, the company clocked a business volume of Rs 600 crore in 2008-09. ``This year we are planning to explore the prospects in new destinations and at the same time increase our sales in the domestic market,������ Mr Gurnam Arora, joint managing director of Kohinoor Foods Ltd. told ET. Almost 55 % of it business volume is from exports.

At present majority of its revenue is coming from the sales of basmatic rice. Its other food categories like ready-to-eat products, cook-in sauces, cooking pastes, spices, seasonings and frozen food contributed just Rs 50 crore to the total kitty, almost entirely from exports. `` We want to expand it to Rs 100 crore. Besides finding new shelves abroad, we would also touch base in India,������ Mr Arora said.

Kohinoor will launch new products during the year and increase its network in the country. According to Mr Arora, its sales in Apirl and May this year have shown 100 % jump compared with same period in the previous year.. Apart from the north Indian market, the food products have wide consumption in Hyderabad, Chennai and Bangalore.

The company will also raise its existing capacity and add new packaging and bottling plants. In addition, it is looking to expand the food service business.

The company is also in talks for joint ventures in food business sector. ``We are negotiating with three overseas companies. We hope to finalise the deals in the current year,������ he said.