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A Study On Consumers Perception

towards Branded Rice with reference to


Submitted byBhavishya Mittal


About Rice Industry

Current Scenario Rice Industry
Rice Industry in India is one of the major unorganized sector.
40% of the total rice production is taken by branded basmati rice and rest 60% is unbranded.
Every year, Rice consumption is increasing speedily at a rate of 25% (it includes basmati, non-basmati, branded,
Of this 25% share, consumption of basmati is increasing with pace of 10-12% and 13-15% non-basmati rice.
Out of this 10-12% basmati rice, branded rice is growing with a pace of 60% (per annum) and unbranded rice is
growing with a pace of 40% (per annum).
Out of this 13-15% non-basmati rice, branded rice is growing with a pace of 30% (per annum) and unbranded
rice is growing with a pace of 70% (per annum).
There are 5 major players in Rice industryAmar Singh Chawalwala- House of Lal Qilla
Kohinoor Specialty Food Pvt. Ltd.- Kohinoor Rice
LT Foods- Daawat Rice
KRBL Ltd. India Gate Rice
Tilda Ltd.- Tilda Rice
Other than these 5 major firms there are 2500 small and medium firms in the market having branded, unbranded
rice. These small and medium firms deals in brands which are available in local markets, state levels.

Chart showing total rice production in year


Source- KRBL Ltd.


We believe that the horizon is nothing but the limit of our sight. Our endeavor is to give every person
a taste that is truly unmatched by ever expanding our horizons. Our vision is to tirelessly pursue
excellence in every grain and make our products a household name world over
Mr. Anil K. Mittal
(Chairman & Managing Director- KRBL)
Key features KRBL Limited
Worlds Largest Rice Millers- paddy milling capacity a majestic 195MT/hour.
Adding value to Rice By- products- 100% integration rice husk and bran into rice bran oil, power
generation, animal feed and furfural.
Warehousing & Logistics- over 6.5 million sq. feet of warehousing capacity crucial for basmati
Quality Certifications- ISO 9001:2008, BRC-Food, HACCP & SQF 2000, FSSAI certified and
Organic Programe certified according to NPOP, EU and NOP.

Marketing of the Branded Rice.

Started with 3 Brands and 30SKUs, KRBL has expanded its strength by having 14 brands and 132SKUs to cater each
and every segment of Basmati customer.
KRBL has a wide network of 490 distributors and dealers all over INIDA. It covers 2.25Lakh counters consist of
Retailers, Semi-wholesalers, Wholesalers, in General Trade and Modern Retail Trade.
Leading brand of KRBL is India Gate. In India Gate brand KRBL sell only Aged Rice.
Out of the total 14 domestic brands India Gate constitutes 78% of the market share.
Total turnover for the year 2015-2016 is 1500 crore approx.
In the market of branded basmati rice KRBL plays dominant role with 35% share of the total branded basmati rice in
KRBL the first Indian Rice Company to give direct benefit to the end consumer.
One of its scheme was started in 1999 and continues till date. The scheme is given on INDIA GATE BASMATI
Of the total turnover KRBL spent 5% market expenditure to promote the brand.
Nearest competitors of KRBL are Daawat, Kohinoor and Lal Quila.
KRBL focus on quality, its aim is to serve excellent quality to the end consumer.

Topic Introduction
The major aim of this project report is to find out the Scope of Branded Basmati Rice in Delhi-NCR. Our study intends
to identify and assess the needs of various consumers and want to analyse the purchasing behaviour of consumers
towards rice.
The study has examined the perception levels and satisfaction levels of various consumers purchasing branded basmati
This study enables the Rice industry to understand the behavior of consumer towards purchase of rice. The need and
requirement of each consumer is different. What attributes are considered by the consumers while purchasing rice
provided by different brands in the markets of Delhi-NCR.
As the tradition of joint family is decreasing and families are becoming nuclear the consumption pattern also changes.
Consumers prefer 1kg, 5kg pack more than 10kg pack.
The increasing demand for packed rice leads branded rice to increase there market share as the branded rice is well
packed, hygiene and easy to carry. The quality of packed rice is superior than loose rice.
The Survey Method is used in this study for which a questionnaire has been prepared and filled by 200 consumers in and
around Delhi-NCR.
The result of the survey yields important and valuable insights into the landscape study Scope of Branded Basmati Rice
in Delhi-NCR. It helps us to identify certain attributes which a consumer considers while purchasing Rice.

Research Objectives of the Study

To study the consumers perception towards attributes of
Basmati Rice.
To understand the customers preference for Branded
Basmati Rice.
To study the economic perspective in buying Basmati

Research Methodology
Research Design

Exploratory cum descriptive in nature.

Source of Data Collection

Questionnaire filled by the customers purchasing

grocery at various places in Delhi-NCR.

Sampling Procedure

Non-Probability:- Convenient sampling


Sample Size


Limitations of Study

People unawareness, busy schedule, less data,


Analysis & Interpretations



KRBL Ltd. has a strong network India is very versatile country.

all over India. It provides wide Different religions, languages
range of Rice that covers all and traditions are followed. At
the segments.

every state and city KRBL Ltd.

14 brands and 132 different has




variants are provided to fulfil competition from local traders.

the needs of each customer.

It is difficult for One brand to

maintain this Gap.



There is a wide scope of growth Due to huge profit margins retailers

in Branded Rice industry as promote more of loose rice than
60% is still unbranded rice.

packed rice.
Consumers have less knowledge
about rice quality and retailers
make benefits of this at the time of
market fluctuations.



The scope of growth in this industry is very much. The industry of

branded basmati rice is growing with a pace of 15% annually.

According to the survey conducted consumers are moving

towards packed rice than loose rice. There is a shift in consumers
preference from loose rice to packed rice as 69.5% (139 out of
200 respondents) prefer to have packed rice than loose rice.

The change in family size from joint family to nuclear family also
affected the demand for rice. As the family size are decreasing the
consumption pattern also changes. Nuclear families prefer small
packs rather than bulk packs, also both the husband and wife are
working the preference for small packs is more.

On an average the consumer in Delhi-NCR spends Rs.50-Rs.90

per Kg on Rice.

While buying branded rice the consumer first looks at the

packaging of the product then its price mentioned on the pack and
then it considers the quality of the product.

If the quality is satisfied then re-purchase is conducted else the

consumer shift from current brand to another brand.

Rice industry is very old industry and one of the major
unorganised sector. The scope for growth in this industry is very
One of the major requirements in this industry is to educate the
customer about the product. For instance, in case of namkeen
industry the selling of loose namkeen has been abolished up to
great extent. Now the consumer prefer to buy only packed
namkeen. Similarly in Rice, the consumer must be aware about
packed rice and the need to purchase packed rice rather loose rice.
In this industry the scheme preference in not so much required.
As on FMCG products the scheme preference is not required.
To increase the growth, the retailer margin should be reduced.For
instance the company provides product to retailer at Rs.100 and
MRP on that is 150/, 200/-, 250/-, so the Retailer margin gap is
more which is negative for the growth.
One major reason for success of KRBL Ltd. is that KRBL
believes in more distribution strategy to penetrate market. KRBL
provides it products to distributors, distributors supply directly to
retailers and end consumers.No wholesaler or middle men
involvement is this channel.

This study titled A Study on Consumers Perception towards Branded Rice with reference to KRBL LTD.
enables the Rice industry to understand the behaviour of consumer towards purchase of rice. The need and
requirement of each consumer is different. What attributes are considered by the consumers while purchasing rice
provided by different brands in the markets of Delhi-NCR. For all these findings a survey was conducted with sample
size of 200 respondents.
Rice is a staple product and number of brands are available in the market. Consumer prefer those brands which
provide unmatched quality with incomparable price. Consumer also prefer Basmati quality the most.
Brand preference is based on companys image. The leading brand in Delhi-NCR is India Gate. It is so because it
provides 14 brands with 132 different variants fulfilling the needs of each segment in the society. It provides rice
starting from Rs.35 per Kg till Rs.200 per Kg.
With this KRBL Ltd. covers all the segments of the society.
The scope of growth in this industry is more as the preference of branded rice is increasing as compared to unbranded
rice. The consumers are preferring more packed rice than loose rice.
Consumers also prefer small packing rather than large packing. Consumer purchasing habits are not changing as they
prefer to buy from retailers as compared to malls and online stores.



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