KRBL eyes rice by-products

KRBL, the rice exporting firm, expects sales to cross Rs 1000 crore in the current financial year as it will be converting the by-products of rice into profitable revenue streams.

By-products such as husk and bran have the potential to generate revenue and improve the bottom line. Husk, the outer shell of the paddy, can be used to extract furfural, generate power and produce pharmaceutical grade silica.

Bran can be used to extract edible rice bran oil and make de-oiled cakes for animal feed. All these compounds command a premium in the market, some as high as $40 per gram or $40,000 per kilogram.

KRBL claims to be the world's largest exporter and miller of basmati rice. Exports accounted for nearly 11 per cent of the total Basmati exports from India.

KRBL recently acquired an integrated rice milling plant in Dhuri, Punjab. The husk from this plant will be used for production of furfural and for generation of 11MW power through backpressure steam turbines.

Based on the capacities, KRBL would be producing around 3000 tonnes of furfural worth Rs 7 crore in FY2005 and Rs.8.50 crore in FY2006. Own power generation would sale the company Rs 11 crore annually.

The husk ash will be used for production amorphous silica.

The company expects bran oil to be a major money-spinner. KBRL's research department has developed the oil from rice bran. More health foods made from by-products will be launched shortly.

The de-oiled rice bran cake will be used to make cattle and poultry feed.

Margins are expected to improve by over three times. In the first year, sales of over Rs 100 crore arte expected from these products.

KRBL will invest close to Rs 40 crore in its Punjab plant for renovation and upgradation and another Rs 100 crore on expansion and integration of operations.

This newly acquired plant has the capacity of processing 120 tonnes of paddy per hour.