A NEW ERA OF
10X GROWTH, HEALTH, IMPACT
'Moving from its humble beginnings into a high-growth future, GRM is
aiming for 10X to become a household name in India'
The world has been on tenterhooks since the outbreak of COVID-19 in
2019-end. For us at GRM, braving two years of COVID-19 impact meant being a solution
forourcustomers around the world facing supply chain challenges. We did our best to make
sure they had access to high-quality and nutritive rice to boost their plate as well as
palate.
As the pandemic appeared to recede, the war breaking out between Russia
and Ukraine has added to extend the supply chain challenges on the international front.
The fallout of the conflict has fuelled commodity price rise, particularly for fuels and
food. However, in this scenario, at GRM we have had the opportunity to assure our global
customers of oursuperior value proposition and our ability to deliver.
Atul Garg
Chairman and Managing Director
Our strong business fundamentals, established acumen with respect to
sourcing, our credibility within the value chain, and our strong relationships with our
farmers as well as distributors have helped us claim a position of privilege. Our
customers are confident about our ability to providethemwith qualityproducts.
We have continued to grow the value we deliver to our key stakeholders
as a result. This has further helped us to work on expanding our operations in the
domestic market. We are well on our way to create India's largest and most trusted
standalone consumerstaples brand in 10X.
A year in review:
10X Growth through Transformation 2.0
During FY 2021-22, our international business clocked export revenue of
'911 Crore up significantly from '652 in FY 2020-21. Export share in the total revenue
went down to 80% from 82% in FY2020-21. At the same time, our domestic business via GRM
Foodkraft more than doubled to reach '189 Crore in FY2021-22 as compared to ' 59 Crore in
FY 2020-21 with revenue share sharply increased to 17% in FY2021-22 from 7% in FY2020-21.
Our EBITDA grew from 9.2% to 11.4% in FY2021-22 while PAT margin jumped from 5.7% in FY
2020-21 to 7.5% in FY 2021-22 respectively. Our total revenue touched ' 1134 Crore during
the year, up from 800 Crore in FY2020-21.
The numbers show the growth potential of our domestic business in
retail backed by our excellent execution capabilities. Early success primes us for
stronger inroads into India's domestic market and helps us build brand trust. The growth
in capital is aimed at reinvestment in scale, expansion, and adding capabilities.
Our domestic business is growing based on the increasing stature of our
homegrown flagship brand '10X'. We are directing our efforts at growing the brand through
traditional avenues of shelf space in mom-and-pop grocery stores as well as modern trade
platforms provided by leading players. With our focus on quality and nutritive content of
our produce, we are confident that the end-consumer will recognise the value that is on
offer.
During the year, we have continued to diversify our retail portfolio
under brand 10X. Our biryani ready-to-eat line now has four key variants that will help
our consumers appreciate the regionally unique preparations originated in Hyderabad,
Murshidabad, Mughlai cuisine, and Dindigul. The biryani portfolio is designed to delight
connoisseurs while at the same time making connoisseurs out of biryani afficionados.
Not only this, Foodkraft has picked up a minorstake in the foodtech app
GoKhana, aimed at B2B outreach. It is an innovativestepthatwillhelp us build brand
presence.
In the pipeline are several other items such as edible oils, poha, soya
chunks, dryfruits, pulses, ghee, and salt. These products will bear the 10X mark of
high-quality and affordability.
10X health
For us at GRM, providing people with quality food products that is
sourced responsibly and packaged in a way that retains its nutritive value is but one
aspect of our focus on health. Our leadership and our executive teams have indepth
understanding of the products. We enjoy strong
relationships with trusted partners and producers, which we continue to
synergize keeping at heart the best interests of our end-consumers. It is how we ensure
our products are appreciated across the world. We are bringing the same commitment to
quality to our Indian consumers.
10X Impact
India's FMCG industry is growing leaps and bounds, driven by domestic
demand. It is creating space fora lot of players to grow, even as big players target a
greater share of the pie. In this scenario, there is a need for mid-segment providers who
can compete not only based on the quality and variety but also on the strength of their
localised knowledge, distribution capabilities, and specific consumer preferences
including affordability. This is where 10Xis making a difference.
10X as a brand is backed by long-standing relationships that we have
cultivated over five decades with our value chain partners and farmers. In that sense, it
is serving as a vehicle for broad-basing the economic growth and development of these
people. GRM is often the partner of choice for the local players in our ecosystem, powered
by ourattractive offerings.
It is helping us to create long-term impact in the agribusiness sector,
one of the key pillars of growth of the Indian economy. With ourfocus on food packaging,
we are enabling the acceleration of growth for this industry, helping to bring down
overall costs and widening the segment. We are ensuring that the consumer emerges the
ultimatewinner.
We are equally embracing an approach to business sustainability that is
underpinned by ESG principles i.e. conservation of environment, value creation in the
social aspect of doing business, and strengthening governance at ourorganization.