India Gate Basmati Rice Maker KRBL Ltd Expands Into Spices and Edible Oils

Dhuri: KRBL Ltd,  a publicly listed company which is popular for its 'India Gate' basmati rice, has announced its entry into the mixed spices and edible oil segments. India Gate brand has already forayed into other premium non-basmati rice categories that typically sell at a premium.

Their mixed biriyani masala has already been on e-commerce platforms for about a year now and it is planning to launch it in brick-and-mortar general stores next financial year.

"It has already been on e-commerce platforms for a year now. Now we are planning to launch it in brick-and-mortar general stores. Looking at the success of biriyani masala, we are actually creating a range of masalas, for the premium market. We will launch it in the first quarter of next financial year. We will be in the spice mix category because consumer convenience is a factor," one of the top management officials told reporters at their Dhuri rice milling facility.

The official added that the focus on spice mixes is driven by the growing consumer demand for convenience.  

Additionally, KRBL is gearing up to enter the "healthy" edible oil business, starting with rice bran oil. 

The company plans to process and retail the unrefined rice bran oil it already produces at its facilities. The new product is expected to hit the market in January 2024. 

“Our retail network will complement the launch of our edible oils,” the official said, noting that spices and oils are two key categories the company plans to expand aggressively in the coming months.  

The company views this diversification as a logical extension of the India Gate brand. 

“In 30 years, we have built such a strong brand. India Gate has become synonymous with quality rice. Atta, spices, edible oils, and pulses are natural extensions for the brand,” the management noted.  

KRBL is also targeting a record-breaking paddy procurement season, driven by the government's removal of the minimum export price (MEP) on basmati rice in September. The company aims to purchase around one million tonnes of paddy from the recent kharif harvest. 

“This year, we are forecasting higher exports compared to last year due to increased demand in domestic and global markets,” Kunal Gupta, Head of the Dhuri Plant and a fifth-generation businessman, said.  

Currently, KRBL processes 1.2 million tonnes of rice annually across its six facilities and sells 700,000 tonnes of basmati rice each year, with 30% allocated for exports. 

Ayush Gupta, Head of India Business, emphasised the importance of branding in stabilising a volatile market. 

“Rice is a risky trade due to price volatility and short procurement windows. Our brand safeguards us against this volatility,” he explained.  

The company's journey began in 1994 when the founders decided to create a branded basmati rice product at a time when agricultural commodities were typically sold loose and unbranded. 

India Gate has since become a leading name in the basmati rice market, with the company exporting around five million tonnes annually, valued at ₹40,000–50,000 crore.  

KRBL's decision to diversify reflects its strategy to leverage its strong brand reputation while tapping into adjacent markets like spices and edible oils, which offer substantial growth potential.