"We will now test the market with four sub-brands cutting across multiple price points and tuned to demands of individual export markets; for instance there's one sub-brand that is specifically for
The other stakeholders in the venture are Prince
On whether it wouldn't have made commercial sense to have all of its processing capacity in
But, first, Innovo has to make its present felt in the distribution and retail channels. Apart from having distributors in all key territories, it would also introduce cash-and-carry for smaller retailers. (Cash-and-carry is particularly popular in
But aren't there way too many basmati brands already in the local marketplace?
"There is, but at the lower end of the pricing spectrum, and there is always erratic supply," said Kumar. "Even [at] the higher end of the basmati range, many of the mills operate at sub-100,000 tonnes optimum capacity."
This is why Innovo hopes to secure a firm hold by setting up its processing plant in
Plus, 80 per cent of the output will be secured by bulk buyers with their own private labels. The balance 20 per cent will be used by Innovo for its own branded distribution and retail.
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