Gurinder Original2

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LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Report on Summer Training

Costing of Export

of

Modern Rice & General Mills

SUBMITTED TO LOVELY PROFESSIONAL UNIVERSITY

In partial fulfillment of the

Requirements for the award of Degree of

Master of Business Administration

Submitted by:

Gurinder Singh

RS1902-A17

Reg. No. 10900443

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA


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Acknowledgement

I am obliged to all the people which include my managers and mentors

and my colleagues for co-operation during the internship. My increased

spectrum of knowledge in this field is the result of their content

supervision and direction that has helped me to absorb relevant and high

quality information.

My sincere thanks to Mr. Nishant Malik, Managing Director of

Modern Rice & General Mills for permitting me to do the project. His

guidance and enriching my thoughts in this field from different

perspectives.

I would like to thank all my respondents without whose cooperation my

study/project would not have been possible/complete.

Last but not the least, I feel indebted to all those persons and

organizations who/which have provided helped me directly or indirectly

in successful completion of this study.

Gurinder Singh


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STUDENTS DECLARATION

I hereby declare that the Project Report conducted at COSTING of

EXPORT with MODERN RICE & GENERAL MILLS.

Under the guidance ofMISS ASHU KAKKAR, Submitted in partial

fulfillment of the requirements for the Master in Business

Administration in Lovely School of Management is my original work

and the same has not been submitted for the award of any otherDegree/diploma/fellowship or other similar titles or prizes.

Gurinder Singh

Roll No. RS1902-A17

Reg. No. 10900443


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Table of Contents

Acknowledgement 2

Students Declaration 3

Executive Summery 5

Companys Profile 6-7

(i) Vision & Missions 7(ii) Values 8

Objective & Scope of the Study 9

Literature Review 10-17

Research Methodology 18

The 5 Ps Mantra 34

Meaning of Export 42

Problems and Prospects of Rice Export from India 43-48

Costing of Export 49-54

Average Export Price 55

Costing in Rice Mill 59-60

Factors Affecting Price for Export 61

Major Findings 62

General Points in Export Pricing 62-63

Suggestions 64

Conclusion 65

Bibliography & References 66

DIAGRAMS

Rice Process 20


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Executive Summery

The project is primary aimed at understanding Costing of Export. It begins with the introduction

of the company i.e. company profile.

In Research Methodology, Exploratory Research is used for data collection as is best suited for

this fulfilling the project objective.

In final objective a brief summary to Study the cost of Exports to enhance the profits margins.

And to Study The Factors Affecting The Cost Of Export at Modern Rice & General Mills for

legalizing an Export order is given.

In the end the scanned documents has been attached as supporting documents.

It has also been studied how raw material (Paddy) converts into the final product (Rice) to sell it

out in the market i.e. Domestic as well as Foreign Market.


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COMPANY PROFILE

Modern Rice & General Mills was established in the year 1981 with a vision to consolidate the

fragmented basmati rice industry. In a short span of time it has risen to be one of the leading

millers and exporters in the industry under the guided management ofMr. Vinod Malik, Mr.Davinder Malikand Mr. Devraj Malik. A unique business model, out of the box approach of the

management, and the goodwill of the customers has enabled the company to consolidate on its

leadership position.

We are placed in the best basmati paddy region in Karnal district of Haryana. We had been the

suppliers to all top exporters of India and currently supplying to major bulk rice buyers of

Europe, New Zealand, Australia, Canada, Saudi Arabia and U.A.E.

OUR PRESENCE

Modern Rice & General Mills is having niche in Rice market for producing finest sortex cleaned

parboiled rice. We have our presence in domestic market through our Bul-Bul BrandRice.


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VISION & MISSION

Modern Rice & General Mills to emerge as the best premium food company, enabling people to

savour the flavours of India, globally

y To achieve global standards of excellence in our operations with focus on consumersatisfaction /delight, providing consumers the flavour of India;

y To set up high standards of leadership, quality and productivity;

y To develop a well knit human resources policy and culture which motivates employees tocontribute their best towards achievement of organizational objectives; and

y To function as a responsible corporate citizen and help enrich the quality of life of thecommunity and work towards sustainable development.

To harvest natures finest products, process them using the best technology and make them

available across the globe.

The mission encompasses the three core virtues that drive the company:

y High-quality products

y The finest technology

y Global availability

These are the pillars on which rests the edifice of Modern Rice & General Mills.


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Values:

y To put customers first.

y To value the work o f farmers.

y Believes that people make an organization.

y To work towards achieving zero-defect quality.

y To use world-class technology to attain market leadership.

y To encourage ideas, enterprise and teamwork.

y To aspire to be a learning e nterprise.

y To built a work culture based on merit, integrity and transparency.

y To behave responsibly as a global corporate citizen .


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OBJECTIVE OF THE STUDY

a) To understand the Rice Business Processes.

b)To Study the cost of Exports to enhance the profits margins.

c)To Study The Factors Affecting The Cost Of Export

SCOPE OF THE STUDY

The aim of the project is to unfold stepwise all complexities involved in the export business right

from receiving an export order to final realization of export proceeds. It gives a detail idea how

different departments in an Export House work in synchronization so that an export order is

processed.

This project would be helpful to fulfill many loopholes of manufacturing, processing and

analyzing the export order.


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LITERATURE REVIEW

1. COSTS INVOLVED IN EXPORT PRICE QUOTATIONS-SOME THOUGHTSPosted: May 18, 2010 | Comments: 0 | Views: 134 |

http://www.articlesbase.com/entrepreneurship-articles/costs-involved-in-export-price-

quotations-some-thoughts-2398809.html

A vigilant working of costs is required for determining export prices. There may be a assortment

of costs weird to exports. They may have need of special packaging and handling. Credit and

collection costs may also be elevated. Cost may be concerned in credentials unusual to export

transactions. On the other hand, some of the costs involved in inland sales may not apply to

export sales, for example, domestic promotion costs. There might be savings on larger shipment

and through bulk handling. Larger production may also lead lower costs. Thus the actual costs

and risk involved in each export transaction have to be cautiously evaluated. Those costs whichare directly incurred for export purposes are necessarily to be realized from the importer. But he

should not be burdened with costs primarily incurred for the home market. The various elements

of costs for export price based on marginal costs and for export price based on full costs are

given below:

(i) Export price based on Marginal Costs: Following are the Direct or production

costs which are invariably used for the computation of export price.

Determination of export price

1.Direct material

2.Direct labour

3.Variable production overheads (for example special dies ad jigs)


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4.Variable administrative overheads (for example, salary of export clerk) Other costs directly

related to exports:

5.Selling costs advising support to importers abroad

6.Special packing, labeling etc

7.Commission to overseas agent

8.Export credit insurance

9.Bank charges

10.Inland freight

11.Forwarding charges

12.Inland insurance

13.Port charges

14.Export duties, if any

15.Warehousing at port, if required

16.Documentation and incidentals

17.Interest on funds involved/cost of deferred credit

18.Cost of after sales service including free parts supply

19.Consular fees

20.Pre shipment inspection and loss on rejects

Total direct Costs

Less: Duty drawback and benefits sale of import licenses of any

Direct cost net = F.O.B price at marginal cost (1)

Freight (Volume or weight whichever is higher)

Insurance

C.I.F price(based on marginal cost)

Export price based on full costs

Direct costs as in (1) above

Fixed costs/common costs

Production overheads

Administration overheads

Publicity and advertising (general)


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Free on Board (F.O.B) price (based on full cost)

Freight (volume or weight whichever is higher)

Insurance

C.I.F price (based on full cost)

Measurement of the above cost sheet gives the lower limit for export pricing. As would be clear

from the cost sheet all costs directly related to exports are taken into cannot for fixing the lower

limit. If some incentives are allowed on the export of the product concerned, the lower limit

would be further reduced by the amount of incentives. In the case of export houses purchasing

their supplies from underneath manufacturers, the cost price of suppliers obtained would

constitute the lower limit.

Steps involved in an Export price quotation

1. A precise description of the merchandise, packaging, quality and technical specification.

(Illustrated product literature should accompany in case of plant and equipment and durable

consumer goods ad sample on consumer goods)

2. Price including any rebates and discounts terms payments.

3. Price of delivery. I.e Cost, insurance and freight (C.I.F) price is quoted; breakdown of the

same should be provided.

4. Minimum and the maximum quantities that could be supplied

5. Mode of shipment and the date delivery

6. Period for which the quotation is valid

It is always enviable to plan and prepare a cost sheet for every transaction on the above basis.

This will ensure that the exporter does not overlook any items of cost quoting his price. A cost

sheet can be also kept as enduring record about each business which could be of help in making

future quotations.

--------------------------------------------------------------------------------


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2. Problem with Rice ExportersPosted: Dec 17, 2009 | Comments: 0 |

http://www.articlesbase.com/sales-articles/problem-with-rice-exporters-1592442.htmle food.

Some economists say prices for rice, the staple food for much of the world's population, could be

returning to levels that sparked inflation fears in much of Asia last year.Ms Hitankshi Thukral is

deputy dean of the faculty of Economics University of Delhi. She says prices - especially for

Indian rice - are being pushed higher by new customers coming into the market after the

economic slowdown of the past year.

"They expect that the world demand will increase and we expect that the price of rice will

increase next year," Charuk said. "There are many new markets for the Thai rice and also we still

have for our old customer - China, some Arab countries - they will increase the demand."

Prices on the global market could again near the record above $1,000 a ton set in the middle of

2008. This month, export prices for Southeast Asian rice have jumped from about $550 a ton or

less to more than $650.

Vichai Sriprasert, honorary president of the Thai Rice Exporters Association, says further

weakness in the U.S. dollar and concerns over drought in India add to pressure on prices. The

dollar weakness contributes to this; the rumors about weather conditions in India, in China,

Australia, elsewhere, are also contributing, Vichai said. The dollar will continue to be weaker

and weaker - if this turns out to be true other commodities, rice, oil, gold will all go up in price.

Market experts say next year India is likely to try to import three million tons of rice - tapping

the world market for the first time in 21 years - because of a drought.

Vichai also warns that increasing demand for bio-fuels from grain could reduce food crops,

forcing the price of food grains higher.

This is very serious. That's why the rice will not go back to the level that we used to see," Vichai


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said. "It will have to be elevated at a higher level, but I don't know where.The Philippines this

week said it is cutting rice imports because of high prices, even though the country lost more

than a million tons of grain to typhoons this year.

Officials from Vietnam, a leading export competitor with Thailand, predict prices will reach

about $800 a ton by the middle of 2010. This week the Philippines' National Food Authority

offered almost $665 a ton for 600,000 tons of Vietnamese rice.Economists say higher food prices

will only increase the problems faced by the region's poor, who are highly dependent on rice as a

stapl

3. Rice Exporter India, Exporting and Importing RicePosted: May 09, 2008 | Comments: 0 | Views: 2,738 |

http://www.articlesbase.com/sales-articles/rice-exporter-india-exporting-and-importing-

rice-408390.html

More over Rice is the common food item in all over the world, particularly in Asia.

Indias rice exports are growing year by year and also strengthen the Indian economy.

Agricultural products including rice are the major exports from India to various countries.

India is the second largest rice exporter in the world. From the Indian market

spontaneously exports a variety of high quality rice such as basmati, white rice, single

boiled rice etc In these categories a larger part of the basmati rice production is used to

export from India rather than consumption and also has a great demand. Rice extorting

have a great role in the Indian economy and foreign money exchange.

There are many other counties such as Thailand, Japan, China they are also exporting

the varieties of rice, but Indian market has a vital demand because this market provideshigh quality products. Since there are so stiff competitions are happening in the

international rice exporting market, the Indian Govt. proposed so many new ideas to

overcome the situation. India exports rice to the different continents like Asia, South

Africa, Africa, Europe, North Central America, and Oceana Due to high quality of the

basmati rice of Indian market, exporters give more attention to this area of export. The


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main thing of suffering of non basmati rice exporting market in the Indian market is

counties like Thailand, Pakistan can cultivate this non-basmati rice in low cost.

Although the rice exporters are getting some pain from the non-basmati exporting they

manage their business through concentrating the basmati. As mentioned earlier rice

export has a significant role in the business environment of India. Rice exporting is the

major earning of the Indian export and import area. India has a great scope of rice

exporting in the international market, so keep these things in mind and if concentrate the

rice exporting gives high profit for the exporter and the nation. There is a lot of

experiments are occurring in the agricultural field for getting new rice seeds as good as

basmati because the international market demands high quality rice and also people

around the world needs that type of stuff.

4. India is self dependent in production of ricePosted: Dec 15, 2009 | Comments: 0 | Views: 315 |

http://www.articlesbase.com/economics-articles/india-is-self-dependent-in-production-of-rice-

1583984.html

Rice is one of the important cereal food crop of India. Rice contributes about 43% of total food

grain production and 46% of total cereal production in the country. It continues to play vital role

in the national exports. The percentage share of rice in total national export was 4.5% during

1998-99. The percentage share of agriculture export in total national export was 18.25, whereas

the percentage share of rice export in total agriculture export was 24.62 during 1998-99. Thus,

rice export contributes nearly 25% of total agriculture export from the country.

Some important facts about rice in Indian Scenario are as:

Agriculture is the main source of income for families in India. Farms cover over half the land

and almost three-quarters of that land is used to grow the two major grains: rice and wheat.

India is the second leading producer of rice in the entire world, preceded only by China.

India's annual rice production is around 85-90 million tons. Annual consumption is around 85

million tons.


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In India, Rice is cultivated in both seasons - Winter and Summer.

West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Tamil Nadu, Bihar, Orissa, Assam,

Karnataka and Haryana are the major producing states. More than 50% of total production comes

from the first four states.

Food Corporation of India purchases around 20 to 25% of the total rice production in the

country both under levy from the rice mills and directly in the form of paddy from the farmers at

Minimum Support Prices announced by the Govt.

More than 4000 varieties of rice are grown in India.

India is the world's largest exporter of Basmati rice to Saudi Arabia and other Middle East

Countries, Europe, and the United States.

India has the potential to export one million tons of Basmati rice.

Major destinations for Indian non-basmati, white/parboiled rice are Bangladesh, Indonesia,

Philippines, Nigeria, South Africa, Ivory Coast, and other African countries.

5. Problem with Rice Exporters

Posted: Dec 17, 2009 | Comments: 0 |

http://www.articlesbase.com/sales-articles/problem-with-rice-exporters-1592442.html

To climb over the coming months, as an improving global economy raises demand, and drought

cuts production in countries such as India.

Some economists say prices for rice, the staple food for much of the world's population, could be

returning to levels that sparked inflation fears in much of Asia last year.Ms Hitankshi Thukral is

deputy dean of the faculty of Economics University of Delhi. She says prices - especially for

Indian rice - are being pushed higher by new customers coming into the market after the

economic slowdown of the past year.

"They expect that the world demand will increase and we expect that the price of rice will

increase next year," Charuk said. "There are many new markets for the Thai rice and also we still

have for our old customer - China, some Arab countries - they will increase the demand."


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Prices on the global market could again near the record above $1,000 a ton set in the middle of

2008. This month, export prices for Southeast Asian rice have jumped from about $550 a ton or

less to more than $650.

Vichai Sriprasert, honorary president of the Thai Rice Exporters Association, says further

weakness in the U.S. dollar and concerns over drought in India add to pressure on prices. The

dollar weakness contributes to this; the rumors about weather conditions in India, in China,

Australia, elsewhere, are also contributing, Vichai said. The dollar will continue to be weaker

and weaker - if this turns out to be true other commodities, rice, oil, gold will all go up in price.

Market experts say next year India is likely to try to import three million tons of rice - tapping

the world market for the first time in 21 years - because of a drought.

Vichai also warns that increasing demand for bio-fuels from grain could reduce food crops,

forcing the price of food grains higher.

This is very serious. That's why the rice will not go back to the level that we used to see," Vichai

said. "It will have to be elevated at a higher level, but I don't know where.The Philippines this

week said it is cutting rice imports because of high prices, even though the country lost more

than a million tons of grain to typhoons this year.

Officials from Vietnam, a leading export competitor with Thailand, predict prices will reach

about $800 a ton by the middle of 2010. This week the Philippines' National Food Authority

offered almost $665 a ton for 600,000 tons of Vietnamese rice.Economists say higher food prices

will only increase the problems faced by the region's poor, who are highly dependent on rice as a

staple food.


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METHODOLOGY

Our primary objective of doing this project is to get the first hand knowledge of functioning of

an export house. Since we are not comparing two different entities on the basis of their financial

results, rather we are learning the export procedure. Hence Exploratory research design is the

need of the hour.

Thus, project research methodology is as follows:

In Secondary data, both internal & external research was done. For internal researchReady to use documents available with the organization were used. For external research

Internet website & published books were consulted.


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FUTURE PLANS

Modern Rice & General Mills endeavors to strengthen its relationship with everyone associated

with the company. It has equipped itself with powerful strategies to face any challenge in the

future. Our vast procurement network helps the company to acquire superior quality of rice at

low cost, to maintain regular flow of raw material and to strengthen the company's relationship

with the farmers.

There is a huge demand for parboiled rice in the Gulf and this will be a major driving force

behind the company's exports in the coming year. Modern Rice & General Mills is fully

equipped to capitalize on the growing demand of basmati rice.

THE MODERN EDGE

Basmati is not basmati just because it is grown in a special way. It is rendered so, by the care and

effort involved in processing it. MODERN's basmati is special because it is processed as

painstakingly as it is grown.

The result is - basmati of the highest quality, rich in aroma and flavour and packed withnutrition. MODERNs innovative marketing initiatives ensure that basmati is available at all

price points, to suit a wide variety of consumers.

From procuring of paddy to packing, the firm has mastered the art of producing the finest quality

basmati. Firms systemic practices, state-of-the-art equipment and our marketing initiatives give

us the edge.

At MODERN, the firms process chain is definitely its recipe for success.


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Process of converting Paddy into Rice to Selling Markets


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QUALITY STANDARDS

Modern Rice & General Mills maintains world-class quality standards in all areas of its

operations. The company procures the best quality of paddy and processes it using state-of-the-

art technology. The company has the maximum ability to mature basmati rice thereby ensuring

quality. The experienced professionals extensively analyze the quality standards in different

locations of the world and ensure that the finest quality of Basmati rice is processed and branded

by Modern Rice & General Mills. The company has the latest sorting and grinding capability.

By productive use of all the available resources, the company reduces its cost of production and

presents the products to its clients at the most competitive prices. With its wide network, the

company is capable of procuring the best quality of paddy. It offers the premium quality rice

matured from 18- 24 months. With the best flavor and fragrance, Modern Rice & General Mills

presents the Basmati rice of the best quality.

Modern Rice & General Mills has invested a significant amount in its processing, and research

facilities. Experienced professionals are at work with dedication to enhance the quality matching

the international standards.


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RICE PROCUREMENT

The first and most critical step towards total quality management is procurement of rice because

we believe that milled rice as good as the paddy that is procured. We have the most proficient

team and machines to test and grade the harvest for moisture content, head rice yield, percentage

of broken and admixtures, and the length and breadth of the grain. only paddy that conforms to

the Modern quality standards is sent for storage and processing.

TECHNOLOGY STANDARDS

At the Modern Rice & General Mills, the distinct aroma, length and colour of every separate

grain is to specified standards of basmati rice. All the rice undergoes stringent quality tests

before they are shipped to our esteemed customers. We ensure that every grain is fine, silky

smooth and pearl white.

From procurement to storage to milling, until the final packaging, there are stringent quality

checks at every step. The company uses the latest available methodologies and software in order

to monitor the quality of input as well as output. Efforts are made to enhance the process

efficiencies through continuous research and development. This is the reason that the company


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has been able to retain long standing relationships with their clients and add new ones to their

charter.

We use specialized milling techniques for processing value added rice. And this greatly enhances

the company's stance as a leading player in the rice processing sector, and give them additional

edge to offer their customers a better product.

y Milling is the process wherein the rice grain is transformed into a form suitable forhuman consumption, therefore, has to be done with utmost care to prevent breakage of

the kernel and improve the recovery.

y Brown rice is milled further to create a more visually appealing white rice.y After harvesting and drying, the paddy is subjected to the primary milling operation

which includes de-husking as well as the removal of bran layers (polishing) before it is

consumed. In this process the rice which is obtained after milling is called raw rice.

y Another process through which rice is obtained after milling is called "Parboiling Rice."Nearly 60% of the total rice produced in India is subjected to parboiling.

yRice milling losses may be qualitative or quantitative in nature. Quantitative or physicallosses are manifested by low milling recovery while low head rice recovery or high

percentage of broken kernel reflects the qualitative loss in rice grains.

PLANT & MACHINARY

Modern Rice & General Mills' major manufacturing and processing facility is ideally located at

Nilokheri, Karnal. The strategic location of plant ensures expeditious transportation of harvested

paddy from specially identified collection centers across paddy growing belt of Northern India,

thus minimizing transit damage to the delicate grain of rice.


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The state-of-art processing plants for rice production have fully mechanized sophisticated

processing procedures for different stages like de-moisturizing, temperature controlled drying,

cleaning, de-husking, de-stoning, polishing, sorting and grading. In these hi-tech milling plants

every stage conforms to international standards and stringent guidelines of process control are

meticulously adhered to at every stage to ensure uniformity of grains without destroying

fragrance, aroma and basic quality of grain.

Most of the impurities, irrespective of their sizes and nature are completely removed in different

stages of the passage of paddy through fork-like vibrating sieve, scalper suction fan and vibrating

sieve incorporated in these machines.


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PARBOILING PLANT

Parboiling Plant : The process of parboiling uses processed soft water obtained from water

treatment plant. The plant has specially designed soaking bins with sensor based sophisticated

controllers for water temperature. The process is far superior than the conventional methods in

terms of mitigating development of unwanted smells and ensures hygienic processing of the

grain, preserving its fragrance and aroma during the processing. The requirements of soft water

for parboiling process are met by an integrated water treatment plant.


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DRYING PLANT

Drying Plant : Unique fully automatic & mechanized on-line sensor based temperature

controlled gradual drying system, with 12 tonnes per hour drying capacity, ensures consistent &

uniform drying of paddy without breaking the delicate rice grain. The process mitigates any

scope of fermentation and bacterial / fungal infections, simultaneously preserving its natural

aroma.


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MILLING PLANT


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Milling Plant : The three state-of-art milling plants of Modern Rice & General Mills use 21st

century technology from Buhler. The online inflow and outflow mechanisms are fully

computerized with the help of sensors. The plants have production capacity exceeding 10 tons

per hour, and are equipped with number of Pre cleaners, De-stoners, Precision-sizers, Graders,

Paddy separators, De-huskers, Magnets etc. The plant premises are environment friendly and

fully protected against contamination by foreign particles.

The series of color sorters and multi sorters are installed at Modern Rice & General Mills. When

the rice is passed through these series of sorting machines it gets free from Glass pieces, plastic

granules, foreign material, dust, damaged, discolored and unwanted grain.

Aspirated Rice Huskers : These high capacity huskers offer high performance and unmatched

capability for removing husk from paddy rice. Its unique feeding mechanism gives it the ability

to de-husk rice at a greater capacity than conventional huskers while breaking far less rice grain

during the process.

Paddy Separators : This unit removes paddy from brown rice at capacities and efficiencies that

are unmatched in the industry. Its three adjustable-position discharge systems coupled with the

adjustable separating tray angle, allows flexibility in producing pure brown rice and paddy

products.

Plano - Shifters : The requirement of high capacity sizers is met by Plano-Shifters, which

ensures uniform grading.

Length Graders : To segregate rice grains of different sizers, Modern Rice & General Mills has

high capacity graders which ensure on line uniform grading at a comparatively high speed.

Vertical Abrasive Polisher : The high capacity abrasive whitener offers unmatched efficiency

of milling with regard to power savings. Its low milling pressure helps in the maximization of

head rice yield, and its ability to function efficiency on both low and hard milling applications

makes it an ideal "first break" milling machine.


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Color Sorters : The series of optical sorting machines are used for operational flexibility &

define the shade of colour of the grain, as well as the size of the offending spot. Its computer

based monitoring system allows online tracking.

SORTEX PLANT

INTERNATIONAL MARKET

Indias tribute to global food preferences almost since the beginning of time, rice has tickled


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man's palate. Today, rice is the world's single most important food crop and a primary food for

more than a third of the World's Population.

Over 150 million hectares of paddy fields around the World yield nearly 500 million tons of rice.

Rice provides about 21% of the total food calories consumed by the people of the world.

Discerning global customer are today more diet-conscious than ever before and question the

impact of different foods on the human body. Rice is an ideal food. Low fat, with a balanced

starch content, it is an energy giving food. Of over 14,000 varieties of rice, Indian Basmati is the

most sought after in the world.

In the long-grained Basmati Rice, there is no extra starch which makes ordinary rice sticky and

messy, and each grain is whole and complete after cooking, making it easy to digest. Today,

Basmati has captured nearly 20% of the world market.

GLOBAL PRESENCE

The hands behind our success are those of our partners and importers. It is their trust and belief

in us that has enabled us to earn many accolades to our credit. We have been recognized by the

Govt. of India as the one of the star rice exporters in the country - holding a dominant position in

diverse and competitive markets like Canada, New Zealand, Australia, Europe, U.A.E., Saudi

Arabia and other middle east countries.

Today we hold a substantial share of the total Basmati exports from the country.

Modern Rice & General Mills is well represented worldwide and their international distribution

network covers many countries. The tie-ups with various distributors internationally ensure the

presence of Modern Rice & General Mills in all major markets


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OUR MARKET

Keeping an account of the popularity of Basmati rice in the international market, the company

developed a powerful marketing strategy in the global arena. The company is already exporting

to many overseas destinations. The company products have earned remarkable popularity in the

market and the share of exports in the total revenues is rapidly increasing.

Parboiled basmati rice is favoured in the export market because of its aromatic flavour,

elongation on cooking and its non sticky nature. Indian Basmati is the most preferred variety of

rice globally.

The product quality and terms of business have enabled Modern Rice & General Mills to attract

the best distributors in the business. We had exclusive arrangements with the distributors in the

Middle East countries mainly Saudi Arabia and U.A.E.

The MODERN Edge Its processing

De-husking the raw rice is the first step in processing. The brown rice is then milled under

controlled conditions, and graded for size and color before it is packed.

The process strength at MODERN includes a double grading system where grains are subjected

to two rounds of quality checks and controls based on size, color and grain origin. This results in

a quality far superior to the basmati derived from the conventional route.

As a progressive organization, MODERN has invested in state - of - the - art equipment to

transform acquired paddy into grain of the highest quality. Its automated process results in:


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A hygienic product - untouched by the human hand, from the time the paddy is introduced into

the system until it is packed

A low quantum of broken - thanks to the quality equipment.

The ability to process all four basmati types, resulting in greater market share.

The MODERN Edge Its Supply Chain

MODERN has instituted many stable systemic practices to derive grains of the highest quality atvarious price points. This optimal price - value - best quality at the most reasonable price - is

derived through a supply chain discipline that involves...

Pre-Harvest surveys

MODERN deputes knowledgeable representatives to study crop patterns, rain record, soil quality

and farmer expectations. Subsequently, the pre - harvested crop is physically examined and its

balanced development is ensured.

Paddy Procurement

When the first harvested paddy is transported to the mandis (grain markets), it is tested to

ascertain moisture content (the lower the better), cracks, yields and other quality - impacting

parameters. MODERN leverages it's financial position to purchase adequate paddy quantity early

in the season and then allows it to age. The process of aging the raw rice grains in the husk

enhances the aroma of basmati.

Expertise & Quality control

MODERN encourages purchases on its behalf, by trained 'arthias' or intermediaries who are


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aware of industry developments and have specialized experience in purchase techniques and

superior grain identification, through their rotation across markets.

At MODERN, this source mapping is further reinforced by a well - trained quality management

team.

MODERN THE PERFECT PICTURE

y Factory located in a sprawling 11 acre complex located in the rice bowl of India.

y Most modern and advanced processing facilities

y A Quality Control Laboratory with precision machines to check rice at each stage ofproduction.

y A quality control regime to check minutely all aspects of rice production.

y Trained, quality conscious man power.

QUALITY POLICY


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MODERNs Endeavour is to achieve customer satisfaction by producing and supplying Basmati

rice and other products, of consistent and safe quality, to customers all over the world.

This, we intend to attain by continually improving our systems, through technical up gradation of

methods, systems and infrastructure skill enhancement and involvement of employees.

The 5 Ps Mantra:

The ingrained Perfection in each grain offered by MODERN is the result of-

y Procurement of best quality paddyy Preservation of paddy in most hygienic conditionsy Processing of paddy by Hi-tech machinesy Packaging of rice in high standard packaging materialy People working as a team


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Hi Tech Processing

Processing Paddy

The basmati paddy is procured from the region where the soil composition is rich and unique

with the climate especially conducive. This gives Basmati delicate texture, flavour and aroma.

Pre-Cleaner


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Cater to the great pre-cleaning problems at modern rice processing plants

Paddy Dryer

Paddy is uniformly dried and processed through dryer to reduce moisture content and then stored

in warehouses for maturing.

This basmati paddy is then used to manufacture either Raw Basmati or Par boiled Basmati.

De Husking

Gurinder Original2

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Transcript of Gurinder Original2