GRM Overseas, India’s third largest basmati rice exporter to the world and second largest to the Middle East, has announced the acquisition of a manufacturing facility at Gandhidham in Kutch, Gujarat. This acquisition is in line with GRM’s strategic plan to expand capacity and develop a warehouse closer to the Mundra port to augment exports.
The deal is valued at Rs 12 crore and has been funded through a combination of bank borrowings and internal accruals. The acquired facility includes land, building and two sortex plants and has a production capacity of 800 MT per day. The company has also purchased a large plot of land adjoining to the plant to develop a warehouse.
Commenting on the development, Atul Garg, Managing Director, GRM Overseas, said, “We are pleased to announce the acquisition of a manufacturing facility from United Foods, which will increase our production and processing capacity substantially by 800 MT per day. This is an important milestone as we have been pursuing expansion of our business in various geographies such as Europe, US and the Middle East. In addition, for better inventory management an industrial plot of land adjoining to the factory has been acquired which will be used for building of warehousing facilities besides additional production and processing capacity.”
“These initiatives are in line with our long-term strategic plan to increase the production capacity to meet the growing demand and at the same time ensuring that our products continue to meet the high level of quality that is synonymous with the GRM brand. Further, the additional warehousing capacity near the Mundra port will lower lead times for our export order deliveries, thus improving efficiency and productivity in our business cycle,” Garg added.
Prior to the Mundra plant deal, GRM has been operating from its two state of the art manufacturing facilities in Panipat, Haryana.
GRM is already a trusted supplier internationally with vast distribution networks and these new plants will dedicatedly serve the export markets whereas the Panipat plant will focus on serving the domestic market as well as the export markets.