Jaskirat Singh is a fourth-generation businessman in the rice business in India. Founded in 1900, the Red Fort is a popular rice brand. Red Fort recently launched a rice business in Nepal in partnership with Highlife Food. A conversation with Singh} by InvestmentNews}:

TAG_OPEN_strong_39 Red Fort is one of the oldest and most popular rice brands in India. How did nepal collaborate with Highlife now?

The red fort brand has a history of more than 100 years in India. Not only its history, it is also very popular. Everyone has reached the kitchen. Recently, I met Pankaj Gyawali and Ambika Prasad Poudel of Highlife. I came to know that they are also planning to expand their brand. That’s how we met. The Red Fort brand was also popular in Nepal with India. During the meeting, discussions were held on brand development and brand portfolio expansion. Since then, we have started the collaboration as per the plan to bring ‘Highlife’ basmati rice to Nepal.

What is the experience and sales situation in the Nepali market so far?

Nepal currently imports about 6,000 metric tonnes of basmati rice every month. This is higher than last year. Last year, it was 4,000 metric tonnes per month, which has increased by 2,000 metric tonnes. This shows that there is a huge demand for basmati rice in Nepal. As the arrival of tourists and foreigners in the country increases and the spending capacity of Nepalis increases, its demand is increasing day by day.

How has your brand sold so far?

Recently, we have brought basmati rice to the market under the name ‘Highlife’. We had already gone to the supermarket. Earlier, around 300 metric tons were sold annually from the ‘Red Fort’ in Nepal. Now with ‘HiLife’, this sales are expected to increase. The target is to reach 100 to 120 metric tons per month or about 1,200 metric tons annually.

Has your brand expanded to other countries as well?

Our production has now reached about 83 countries of the world. Among the major markets, UAE is number one, followed by Kuwait, The Netherlands and Canada.

How do you see Nepal’s market compared to Europe or international markets?

In my experience, india’s basmati rice exporters feel that they are losing a lot of potential in Nepal. Imports are good in the market here, and consumers are ready to pay the price. It is believed that the current market capacity of 6,000 metric tons will increase further in the future.

Container rentals have become very expensive in the post-Covid days. The container, which used to cost $20 to Jabal Ali Port, now costs $1,000. In Nepal, the cost of sending through trucks instead of containers decreases a lot

What opportunities and challenges do you see while expanding the brand in Nepal?

The biggest opportunity is logistics. Sending rice from Punjab reaches Nepal in 3-4 days, but it takes about a month to send it to other countries. This reduces costs, as container fares have become very expensive in the post-Covid days. The container, which used to cost $20 to Jabal Ali Port, now costs $1,000. In Nepal, the cost of sending trucks instead of containers is greatly reduced.

TAG_OPEN_strong_32 Other brands have also made a strong presence in the Nepali market in recent times. What is your strategy in such a competitive market?

Most of the brands in the Nepali market have been brought through traders. But they are not directly related to mills like us. We produce rice in the mill, which provides the same quality of rice throughout the year. Consumers get the rice purchased today and the rice purchased after six months of the same quality. We have two factories in Amritsar and a third is under construction in Gujarat. Everything from production to ‘aging’ takes place in our factory. This will give Nepali consumers an experience of what the best basmati rice should be like.

What more do you want to say?

I am grateful for the opportunity given by ‘HiLife’ and hope to take it forward in the future.”