GRM Overseas Limited, the third largest basmati rice exporter in the world and second largest in the Middle East (referred to as "GRM" or the "Company"), announces the acquisition of a manufacturing facility at Gandhidham, 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.
Acquisition of a manufacturing facility:
- Facility included land & building and two sortex plants
- Cost of acquisition was Rs. 12 Crores
- The production capacity of this unit is 800 MT per day
- The acquisition has been funded through internal accruals
- Plant to commence operations in the second half of May 2019
GRM has also purchased an adjoining plot of land:
- Plot area of 16,500 sq.mtr
- Cost of acquisition of land was Rs.1.55 crores
- Proposed capex of approximately Rs. 5 crores to develop a warehouse and additional production capacity
- The capex is purposed to be funded through a combination of bank borrowings and internal accruals
Commenting on the development, Mr. Atul Garg, Managing Director 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, 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.
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.
Shares of GRM OVERSEAS LTD. was last trading in BSE at Rs.224.95 as compared to the previous close of Rs. 226.4. The total number of shares traded during the day was 45 in over 4 trades.
The stock hit an intraday high of Rs. 224.95 and intraday low of 215.15. The net turnover during the day was Rs. 9865.