FMCG Stock Jumps Nearly 2% On Boosting Global Presence With Saudi Distribution Deal

One of the top exporters of basmati rice from India and a rapidly expanding FMCG company, GRM Overseas Limited, is thrilled to announce that it has signed a deal with Seven Star Company Limited in Riyadh, Kingdom of Saudi Arabia, to distribute its flagship brand of basmati rice, "10X," throughout the Saudi market.

This triggered the shares of GRM Overseas, which opened at Rs 405 on the NSE on Monday, October 20, to soar to an intraday high of Rs 406.25, a gain of about 2% from the previous close of Rs 398.60.

Seven Star Company Limited will use its extensive distribution and retail network throughout the region to market GRM's "10X" basmati rice in a variety of pack sizes as part of this strategic partnership. GRM's continuous attempts to broaden its footprint in global markets, especially the Middle East, have advanced significantly with this partnership.

Mr. Atul Garg, Chairman & Managing Director, GRM Overseas Limited, said: "We are delighted to partner with Seven Star Company Limited to expand our brand '10X' in Saudi Arabia. Their strong market presence and distribution capabilities will help us reach a wider consumer base and further strengthen our global footprint. This collaboration aligns with our vision to make GRM's premium products available across key global markets."

A prominent manufacturer and exporter of basmati rice and other food products, GRM Overseas is an Indian consumer staples firm that was founded in 1974 and incorporated in 1995. The firm, which is India's third-largest exporter of basmati rice, sells its products in more than 38 nations and is branching out into consumer goods including ready-to-eat products through its home subsidiary, GRM Foodkraft.

GRM International Holding Ltd. (UK), GRM Fine Foods Inc. (USA), and GRM Foodkraft Pvt. Ltd. (India) are the three subsidiaries that make up the group. According to Screener statistics, the company's earnings and profitability have grown significantly over time. Consolidated sales, for instance, increased from around Rs 355 crore in FY2016 to about Rs 1,312 crore in FY2024. Net profit increased from a meager Rs 2 crore in FY2016 to around Rs 61-62 crore in FY2024 within the same time frame. The operating profit margin has been about 6% in recent years, indicating that margins are still rather low.

The corporation reports a 10-year compounded sales growth of around 12% and a profit growth of about 14% in terms of return measures. However, there has been considerable pressure on its return on equity (ROE) and return on capital employed (ROCE); the latter was about 16% last year, compared to about 26% over the previous ten years. As of FY2025, the company's total assets were around Rs 911 crore, while its total borrowings were approximately Rs 364 crore. With international as well as domestic operations, GRM Overseas has a specialized company in basmati rice that has experienced significant growth in the past ten years.