Dubai-based retailer Choithram Retails has signed a Dh200 million deal with India’s basmati major Amira Foods to distribute its products in the Middle East.
According to the retailer’s website, it has 25 stores across the UAE.
Times of India reported that the tie-up is aimed at capturing more than a fourth of the thriving UAE and Iranian basmati market. Dubai is a branded rice market of nearly 2,000 metric tonnes. With this region central to its strategy, Amira has launched its top-end basmati brands in UAE market.
Dubai is also a crucial gateway for re- export to another key basmati destination Iran, especially in non-branded segment. Close to 80 per cent of basmati rice consumption is in the Middle East, with preferences leaning toward parboiled extra-long grain basmati rice and traditional basmati rice.
Company Group Managing Director Karan A Chanana said: “We want to capture 20 to 25 per cent market share in every geography within the first 18 months, not just in basmati but also in high-end aromatic varieties such as Thai Jasmine. Our ad spend in each region will be 10 to 15 per cent of the revenue earned. A key part of the strategy is to tie-up with top notch distribution partners.”