January 23, 2009
PRG uses innovation to expand to nutrient rice
Published: 23/01/2009 at 12:00 AM
Newspaper section: Business
Patum Rice Mill and Granary (PRG), a SET-listed rice trader and exporter, is expanding from commodity-based to value-added products, focusing on nutrient rice, supported by the National Innovation Agency. A new subsidiary, Inno Food Co, has been set up by PRG with initial capital of five million baht to produce and distribute nutra-GABA (Gamma aminobutyric acid) rice.
The managing director of Inno Food, Somboon Thitinun, said the company obtained help from the NIA by matching it with Mahidol and Kasetsart universities to develop the new nutrient rice to serve a niche market.
Research shows that GABA can help reduce the risk of diseases such as diabetes and hypertension, Mr Somboon said.
He declined to disclose the investment cost but said the company expected a profit margin at least 10% on its sales per year.
Rut Subniran, the chairman of the PRG executive board, said earlier that the niche GABA rice product was projected to sell about 100 tonnes per year, a small amount when compared with the 100,000 tonnes Pathum sells.
Mr Somboon said the company's market survey showed that Thai people wanted more nutritional rice but it also had to taste good _ close to regular Hom Mali _ so GABA rice was developed to serve this market need.
The target market for the product is upper- and middle-income consumers who don't mind paying 200 baht per kilogramme or about eight to 10 times more than the price of conventional Hom Mali.
He is confident that the market response will be good as the company has joined with MBK Food Co, the distributor of the popular Mah Boon Krong rice brand, to help create a marketing strategy for GABA.
It was also allowed to use the MBK brand to help build brand awareness among local market.
''In spite of the economic downturn, I don't think Thai people will stop eating rice. As well, our rice is quite niche, we make it for people with health concerns and high purchasing power. I think our product has a bright prospect,'' Mr Somboon said.
He added that Inno Food also planned to produce new high-nutrient food and beverage products, particularly instant healthy foods and ready-to-eat meals.
PRG shares closed yesterday on the Stock Exchange at 33 baht, unchanged, in light trade worth 7,000 baht.
http://www.bangkokpost.com/business/economics/10254/prg-uses-innovation-to-expand-to-nutrient-rice
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