Eyeing Rs 1500 crore turnover in FY15: Kohinoor Foods

Gurnam Arora, Joint MD of Kohinoor Foods talking about growth outlook said the company is eyeing Rs 1475 crore turnover in FY15 on back of strong orders and improvement in domestic sales. Going forward he expects steady growth momentum of order inflows from Iran. Total export sales have increased from Rs 417 crore to Rs 465 crore from April to September end. The December quarter did very well in terms of sales, says Arora.Traditionally, second half is a strong for the company but this time the Basmati rice prices were 30-40% cheaper than last year because of bumper crop. However, he expects the uptick in volume growth to compensate for lower prices in the second half. Basmati rice exports have increased by 27 percent from Rs 296 crore to Rs 375 crore and foods sales have increased by 24 percent from Rs 32 crore to Rs 39 crore.

Below is the transcript of Gurnam Arora interview with Ekta Batra & Nigel D'Souza on CNBC-TV18.Nigel: The stock is higher in today’s session. There is some talk that with inflation pressures easing there could be higher discretionary spends and may be you stand to gain from that. Give us the break up of your domestic as well as exports in terms of revenues? Do you believe that in fact the domestic story as well is improving?A: You see the Basmati rice export has increased by 27 percent from Rs 296-375 crore and food sales has increased by 24 percent from Rs 32 crore to Rs 39 crore. Totally the export sale has increased from Rs 417-465 crore till September. Ekta: This is from April to September?A: Correct.Ekta: How is this December quarter done for you?A: It has done very well. Ekta: What are the trends for the second half it is generally stronger seasonally I do understand for the rice industry. What do you think you can clock in terms of volumes and prices as compared to that same time last year? A: Right now the prices of Basmati have decreased quite a bit but still the orders are very good so we will be able to increase volumes a little bit than last year.Ekta: You are saying that your volumes will compensate on the price?A: Yes.Ekta: How much of a price decline have you seen and how much of an incremental volume gain can you see? A: Our prices are about 30-40 percent cheaper than last year. Ekta: Why is that?A: It is because of bumper crop of Basmati rice.Ekta: What about volumes?A: This year we have increased our exports to 2-3 new clients which are quite big. We have taken over the Abu-Dhabi municipal corporations business which is quite good and we have done good business in Iran. Iran is banned now but some of our customers are still doing business with their old commitments so we are doing fine for even the next quarter.