REI Agro Ltd SWOT Analysis, USP & Competitors

Posted in Food & Beverages, Total Reads: 716
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SWOT Analysis of REI Agro Ltd with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

REI Agro Ltd

Parent Company

REI Agro Ltd

Category

Food Processing

Sector

Foods and Beverages

Tagline/ Slogan

It’s time to have a treat, that’s royal in ways untold

USP

World’s largest basmati rice processing company

STP

Segment

All rice eating individuals

Target Group

Domestic customers, wholesalers and retailers

Positioning

Most matured basmati rice in the industry

SWOT Analysis

Strengths

1. Largest and the strongest procurement network for procurement of basmati paddy from farmers
2. The company commands a sizeable share of World’s Basmati Market
3. Focuses on an integrated model and matures basmati more than any other company in the Basmati rice industry

4. Well established distribution network in international markets

5. Preferred buyer status with the farmers on account of the good relationships built over a period of time

6. The company enjoys investment grade rating from Credit Analysis & Research Limited (CARE) for short term debt

Weaknesses

1. Only one manufacturing unit in Haryana leads to increased transportation cost while transporting the produce to southern states
2. Higher debt than its nearest competitor may overexpose the company to market forces

Opportunities

1. The total food production in India is expected to double in the

next ten years and there is an ample opportunity for huge investments

in food and food processing technologies, skills and equipments

2. Growing trend in the consumption pattern of processed food products in India provides an opportunity to venture into it

3. Expansion of international distribution network because of increasing demand of rice in middle-east and other Asian countries

Threats

1. Excessive competition in the FMCG sector with many major players reduces the profit margins and sales prospects for REI Agro
2. Profitability may be impacted as the procurement cost from the Southern states has increased on account of higher transportation costs
3. Bottomed out economic activity in the west may have sneezing effect on Asian economies leading to reduced consumption demand for premium rice products

4. As the Company operates in only one segment, any adverse government policy for Basmati rice, may have a negative impact on company`s performance

Competition

Competitors

1. KRBL Limited

2. Kohinoor Foods Limited

3. Chaman Lal Setia Exports Limited

4. Hatsun Agro

5. ADF Foods

6. Sita Shree Foods



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