08-05-2025
DRRK Foods eyes 2X distributor growth and 75 pc revenue uptick from South India
DRRK Foods
, a producer of
basmati rice
, is planning to expand its presence aggressively in South India, along with doubling its distributors' strength from 150+ distributors to 300+ distributors over the next two years, Vikram Marwaha, joint managing director, DRRK Foods told ETRetail.
The company already has a presence in various states in India, ranging from Jammu & Kashmir to Punjab, Rajasthan, Uttar Pradesh, Gujarat, and some areas of Maharashtra, Telangana, Andhra Pradesh, Madhya Pradesh, Karnataka, and Tamil Nadu.
"We are seeing growth in our domestic business. Though we have a solid presence in northern India, we have now started aggressively expanding in the southern markets, where huge growth opportunities lie," he asserted.
"To support this growth, we are setting up a new manufacturing facility in Madhya Pradesh. The aim is to decentralize operations, reduce the burden on our northern plants, and make distribution to southern and northeastern markets more efficient. It will also help us with exports via the western coast through the Mundra port," he further added.
At present, southern India accounts for approximately 20–25 per cent of its
domestic revenue
, and it estimates that roughly 75 per cent of its growth next year will be from here.
"In the south, general trade has traditionally been more bulk-driven, and rice distribution was heavily dominated by local and regional players. However, post-COVID, there is an increase in demand for packaged rice, particularly in the mid and premium categories. So, we plan to capture that increasing demand," he stated.
"In addition, one super-stockist in the north typically manages 8–12 distributors. In the south, however, each super-stockist is currently handling only 2–3 distributors. This shows the clear scope for expansion," he further added.
At present, it has a presence across 15,000 GT outlets and 200 MT outlets.
To further fortify its foothold, it is also opening a new office in Hyderabad to establish a stronger distribution and retail network in Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Kerala.
The company closed the last fiscal year crossing the Rs 1,000 revenue mark, where 20 per cent of the revenue was contributed by domestic markets and 80 per cent of the revenue came from exports.
"This fiscal year, by strengthening our presence in South India, we are targeting a 15-20 per cent increase in our domestic revenue," he said.
"Currently, our PAT margin is in the range of 6–7 per cent. We are cautiously optimistic about maintaining this profitability as we scale. Our strategy remains rooted in sustainable growth with healthy margins, rather than chasing topline growth alone," he concluded.
