KRBL Ltd, listed on the National Stock Exchange, has launched poha (flattened rice) under its India Gate brand as part of a multi-year expansion into the staples category, targeting an initial monthly volume of 100 tonnes, according to Kunal Sharma, the company’s Vice President – Marketing and Organised Trade.
Market Launch and Geographic Focus
The company is rolling out India Gate poha in phase one across Delhi, the National Capital Region, Uttar Pradesh, and Punjab, Sharma told businessline in an online interaction. Simultaneously, KRBL has launched the product in select European markets, where consumption is driven by the expatriate population. "We started, maybe, a few months before we started in India. But in Europe, Poha consumption is largely among the expat population," said Sharma. Although the European market is limited, the company reports good traction there.
Production and Sourcing Strategy
Currently, KRBL contract manufactures poha due to low initial volumes. The product is sourced from southern Gujarat, and the company is evaluating multiple sources. Eventually, it plans to open up the Madhya Pradesh market, sourcing from Indore and Ujjain. Sharma noted that if monthly volume reaches 1,000 tonnes, the company would consider setting up its own manufacturing unit to control quality. "If we get to 1,000 tonnes monthly volume, then definitely it is something that we will want to do," he said. For now, KRBL markets 100 tonnes per month, with expectations of demand reaching 200 tonnes once launched in Madhya Pradesh and Chhattisgarh, which are larger poha markets. Contract farming for raw materials is under consideration at a later stage, Sharma added.
Category Expansion Plans
The poha launch is the first of 3-4 categories KRBL is evaluating under the India Gate brand as it moves beyond its core Basmati rice business. "One of the logical adjacencies for us was staples as a category," said Sharma. The company sees a huge opportunity in poha, which is a 2-million-tonne-per-annum category in India, with only about 10% sold in packaged form. The market remains largely unorganized, with only one or two national players. KRBL is also evaluating vermicelli and makhana as potential additions, focusing on categories with longer shelf life, unorganized markets, and attractive gross margins.
| Phase | Geography | Target Monthly Volume |
|---|---|---|
| Phase 1 | Delhi NCR, UP, Punjab | 100 tonnes |
| Phase 2 | Madhya Pradesh, Chhattisgarh | 200 tonnes |
| Future (if own unit) | National expansion | 1,000 tonnes |
Company Background and Strategic Rationale
KRBL has operated in Basmati rice under the India Gate brand for years. Over the past two years, the company has been exploring potential categories for expansion. Poha was chosen as the first logical adjacency because of its large, unorganized market and the perception of healthiness among consumers. "Poha has the perception of being healthier amongst consumers. It is getting adopted in the north fast. We are seeing this as a growing market," said Sharma. The company plans to launch poha in the North, where it can replace oily foods and parathas. By the year-end, KRBL expects to be in a better position to assess demand and potential for its own manufacturing unit.
For manufacturing executives and procurement professionals, the move highlights how food processors can enter new categories through contract manufacturing to test demand before committing capital. KRBL's back-end capabilities position it to eventually control quality through an owned facility if volumes scale. The company's sourcing from multiple regions—southern Gujarat initially, then Indore and Ujjain—reflects a strategy to manage supply chain risk in a commodity where regional varieties exist (Indori, Gujarat, Katarni poha).
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