FMCG Stock Surges 5% After Securing Maigen Govt Order of Rs 465 Mn: Do You Own?

After getting its first order to provide 4,500 MT of Premium basmati rice from the Sultanate of Oman's Ministry of Agricultural, Fisheries, Wealth, and Water Resources, GRM Overseas Limited (GRM) saw a 4.32% rise in share price on Monday, closing at Rs 148.35 per share on the BSE. The order is valued at 465 million Indian Rupees.

"The Govt. entities in MENA region opens a significant target market for GRM Overseas with approx total size of 7,00,000 MT + import of Basmati Rice," said the company in a regulatory filing.

With around 78% of India's total exports in FY23 going to the MENA region, the region is the largest importer of basmati rice. Europe and the USA + Canada account for 6.9% and 6.6% of total exports from India, respectively. As one of the top 5 exporters of basmati rice in the MENA region, GRM Overseas has strategically positioned itself, with 95% of its export business going to the region.

Mr. Atul Garg - Managing Director at GRM Overseas said, "We are thrilled to have received this maiden order from the Sultanate of Oman, one of the largest consumers of Indian basmati rice. This signifies Oman's recognition of the quality of our basmati rice and its growing demand in the country. We see this order as a gateway to regular business opportunities in the Middle East, the largest consumer region of basmati rice. We look forward to further strengthening our presence in this region and diversifying our business."

GRM began exporting rice to the Middle East, the UK, and the US when it was founded in 1974. With steady expansion, GRM has established a market for its rice in 42 nations, earning it the distinction of being India's third-largest rice exporter. Based in Panipat (Haryana), Naultha (Haryana), and Gandhidham (Gujarat), GRM has three rice processing facilities with a combined yearly production capacity of 4,40,800 MT. Furthermore, the company own a 1.75 lakh square foot warehouse. Products are sold by GRM under the brands "10X," "Himalaya River," and "Tanoush," as well as through private label arrangements under the trademarks of its customers.