KRBL Shareholders Approve Expansion into Real Estate and Allied Activities

KRBL Ltd, India’s largest basmati rice exporter, has received shareholder approval to expand its business scope by entering the real estate development sector and allied activities. This decision was made during the company’s 32nd Annual General Meeting (AGM) and marks a significant step in diversifying beyond its traditional agri-foods operations.

The resolution to include real estate development was passed with a decisive majority, with votes in favor outnumbering those against by more than three to one. The change will insert “real-estate development and allied activities” into Clause III(A) of the Memorandum of Association. This amendment will enable KRBL and its subsidiaries to acquire, develop, construct, lease, manage, and monetize immovable property.

The company’s management believes that this diversification will create a complementary growth engine alongside its core agri-foods business, enhancing long-term shareholder value. KRBL has been performing exceptionally well financially. In the June quarter, the company’s net profit surged by 74% year-on-year to ₹151 crore from ₹86.4 crore, while revenue climbed by 32% to ₹1,584 crore. Exports were the standout driver, nearly doubling due to robust demand in private label sales, while domestic revenue grew by 15%.

KRBL has established a formidable global presence, exporting to over 90 countries. This is supported by a domestic network of 850 distributors and the largest contact farming base for rice in India. The company’s strategic move into real estate is expected to leverage its existing strengths and open new avenues for growth.

As of 2:43 pm, shares of KRBL were trading 0.6% higher at ₹369.25 on the NSE, reflecting the market’s positive sentiment towards this strategic expansion. The company’s management is confident that this diversification will not only enhance its financial performance but also solidify its position as a diversified business entity in India’s economic landscape.

This move by KRBL underscores the company’s commitment to innovation and growth, aligning with the evolving market dynamics and consumer demands. By entering the real estate sector, KRBL aims to capitalize on the growing opportunities in this segment, while maintaining its leadership in the agri-foods industry.