PRODUCT: BASMATI RICE

INTRODUCTION

About Company
Lal Qilla Basmati rice, a renowned Indian brand is available in countries like USA, Canada, Germany, Australia, Norway, Spain, Italy, France, Denmark, Austria, Japan, Singapore, Mauritius, Thailand, Indonesia, Russia, Kuwait, Saudi Arabia, Bahrain, UAE and many other countries. So explore and appreciate this versatile staple food with Lal Qilla Basmati rice which is rich and unforgettable blend of tradition and exotic produce. ASCW has witnessed an unprecedented growth. While the progress has been substantial, the future also holds immense pleasure. Always focused towards the customer's taste and preferences, the company enjoys a formidable share in the rice market in India and owing to the increasing demand, is all set to acquire the overseas market. Backed by a team of visionaries and committed professionals the company has carved a niche for itself. And as classic rice recipes sit alongside dishes from around the world the company is moving towards a bright future. The House of Lal Qilla is not just about wonderful basmati rice. We continue to diversify into Soya based food products, Jaggery Powder, Green Tea and Spicy Amritsary Warrian, making the House of ASCW a holistic 'food' company. The company's commitment to the best is now translated into a range of Stainless Steel Products. In keeping with our reputation, we constantly endeavour to bring our consumers the very finest quality according to the international standards, with a product range designed to cater to diverse and discerning tastes.

MARKET SHARE

S s

Sales

Tilda 8%

dawaat 12%

Lal Quilla 27%

double diamond 23%

kohinoor24%

LAL QUILLA BASMATI RICE

T

SWOT Analysis

 Strengths

1. Our global district network consists of both exclusive and non-exclusive distributors 2. Our portfolio consists of all kinds of Basmati rice 3. Advanced survey technologies help us in optimizing our procurement process Weaknesses

1. Lower net margins due to little differentiation 2. High working capital requirement , reducing return on capital 3. High dependence on monsoons 4. High dependence on Middle East Opportunities 1. Consumers Ability and willingness to pay for better quality products 2. Increased domestic consumption to drive due to favourable demographics 3. Greater access to global markets Threats

1. Emergence of low cost substitutes by Pakistan exporters 2. Improved performance by Pakistan export 3. Significant change in govt. policies could disrupt the business

En - Porters 5 forces

Porters 5 Forces

Bargaining Power of Supplier High

Rice basmati prices firmed by Rs 100 per quintal on the wholesale grains market today on emergence of buying by stockists and retailers.Traders said fresh buying by stockists and retailers, driven by ongoing marriage season demand, helped wholesale rice basmati prices.

In the national capital, basmati common and Pusa-1121 varieties rose by Rs 100 each to Rs 5,600-5,700 and Rs 4,400-5,200 per quintal, respectively. Bargaining Power of customer - High Consumer has the power to choose in this industry with variety. Unless players can differentiate against each other, the market shall remain mostly homogeneous. Customers will have high bargaining power and will be influenced by costs. Threat of Substitutes- low There is not major substitute for basmati rice.The substitute for basmati rice is other variety of rice i.e Ambemohar , Dubraj rice, Navara rice, Joha rice, Sona Masuri,Colum rice.Hense the treat for basmati rice is very low.

Threat of New Entrants- Low The treat of new entrance for Lal Quila basmati rice is also very low.There are not too high competitions from other basmati rice company for Lal Quila basmati rice. Competitive Rivalry- Medium There is medium competition for Lal Quila basmati rice.So the competitive rivalry for Lal Quila basmati rice is medium.The competition is from other basmati rice company i.e. Kohinoor basmati rice

BCG MATRIX

STARS
High

QUESTION MARKS

Market growth Rate( %)

CASH COWS
Low

DOGS

High Relative Market Share

Low

Lal Quilla restaurant emerge as clear Stars (high market growth, high market share). Hence, this should be retained and the investment in these companies should be increased Lal Quilla Tea emerge as the Cash Cows(low market growth, high market share).This should be held on to for the time being Some of the Question Marks (high market growth, low market share) are Lal Quilla Tourisms, and Lal Quilla Chemicals