The Rs 650-crore Delhi-based Kohinoor Foods, leading exporter of Basmati rice, has begun to test-market its frozen foods (finger foods, curries, and Indian breads, all vegetarian) in Delhi and the NCR region, and will extend them to Mumbai, Bangalore and other major cities in the next three months. The company's food business comprising ready-to-eat foods, frozen foods, cook-in sauces, cooking pastes and spices and seasonings account for Rs 50 crore of its turnover, says a report in Business Line from Chennai.

According to Gurnam Arora, joint managing director of the company, Indians' attitude of wanting fresh food and the availability of household help are the bottlenecks to this business. The barrier to this business in India is also the lack of infrastructure such as refrigeration and suitable transport facilities but as organised retail is coming into its own, the prospects are better now. In India, ready-to-eat and frozen foods would be considered a luxury, but abroad consumers would buy these rather than go to a restaurant in these tough times, Arora said.

Kohinoor Foods' bigger business is in branded Basmati rice. Rice accounts for Rs 600 crore of the revenue. The company has several brands within its rice portfolio, such as Trophy, Nawab and Charminar, but it plans to phase them out gradually, introduce more Basmati varieties and market all of them under the Kohinoor brand. The brand is presently sold in 65 countries.

Kohinoor Foods products are sold in several department stores such as Wal-Mart, Krogers, Whole Foods, Target and Cost Plus in the US, Tesco and Asda in the UK, Daimaru and Takashimaya in Japan and Coles and Woolworths in Australia and also in several other countries. In India, it is distributed in over 2 lakh retail outlets. Its Basmati brand prices range between Rs 60-70 and Rs 120 a kg depending on the quality.

The company is shoring up its distribution and launching an ad campaign for all its products at the end of the month. The company hopes to reap the benefits of these efforts next year.