Exports to increase 30% this yr: REI Agro

Sundip Jhunjhunwala, Vice-Chairman and Managing Director, REI Agro, said the company has already started exporting to West Asia, which is the largest consumer for basmati across the globe. "We have increased our presence over there. This is quite evident from the increase in exports. Another 30% increase in exports is expected in the current year."

Excerpts from CNBC-TV18's exclusive interview with Sundip Jhunjhunwala:

Q: While the sales picture has looked pretty good, you probably will be disappointed with the kind of performance in bottomline? What are the reasons for the same?

A: In FY07, there was a reversal in the differed tax liability. That is why our performance for Q4 FY08 looks little dismissal. But in actual terms, it is a big jump from the about Rs 9 crore Q4 profit in FY07 to around 22.5 crore last year.

Q: How much tax have you paid this quarter around?

A: This quarter, our tax outgo was around Rs 4.5 crore.

Q: In terms of pure volumes that you sown this quarter, what has been the jump? What do you forecast the volume growth to be in subsequent quarters as well?

A: Volumes have grown quite substantially over the previous year because our exports have increased from Rs 184 crore to Rs 316 crore. Volumes have gone up from 67,000 tonne to 80,000 tonne. There is volume growth as new markets have been tapped into. This is going to continue in the coming year also.

Q: So, how much additional volume do you see coming in from new markets? Which are the markets that you are looking at entering into FY09?

A: We have already started exporting to entire West Asia now, which is the largest consumer for basmati across the globe. We have increased our presence over there. This is quite evident from the increase in exports. Another 30% increase in exports is expected in the current year.

Q: There was a bit of a move from the government's end to probably ban exports of Basmati from India. Then, there was a subsequent reversal of some sort. What is the current status on that front and how much are you likely to benefit from the same?

A: There has never been a move to ban Basmati from India. Non-Basmati, which is normal rice, has been banned and continues to remain banned. Basmati has got a minimum export price of USD 1,000. A duty has also been imposed, which has been put on all exports, and it continues to be there. We are quite hopeful that the government will maintain its position of not banning Basmati rice out of India.

Q: What is the sales and profit target for FY09?

A: We will continue to grow as we have grown over the previous years.