Vinod Kumar Chaturvedi, Managing Director, Usher Agro, has 20 years of experience in finance, project & food processing industry. He holds a B. Com degree from Agra University and is a fellow member of ‘The Institute of Chartered Accountants of India. During 1996, he promoted Usher Agro Ltd. and set up a conventional rice milling plant at Mathura, which was successfully implemented & commissioned ahead of schedule. He is the key promoter of our Company. Under his guidance the Company is growing steadily since the inception. Subsequently, he implemented Modern Rice Milling Plant at Buxar (Bihar), the Roller Wheat Roller Flour Milling Plant at Mathura and Modern Rice Milling Plant at Chhata, Mathura. Mr. Chaturvedi has varied experience in project execution, finance & account activities.
Usher Agro Ltd has charted its growth plan based on its conviction of the opportunities available in food processing sector and have been consistently building up the processing capacity right from its inception. Usher put its first project of rice milling at Mathura (U.P.) started in 1996 with a installed capacity of 10800 MTPA and which is now stood at over 250000 MTPA apart from 300000 MTPA is under implementation. Besides, rice milling Usher is also having Wheat flour milling facility of 75000 MTPA and captive co-generation power plant based on rice husk a bye product of rice milling activity. Usher believes in using the latest technology & has adapted itself with the rising demands in the industry. ‘Rasoi Raaja’ a registered brand of Usher is identified with superiority, quality & credibility.
Replying to Anurag More of IIFL, Mr. Vinod Chaturvedi says, "We plan to raise Rs1bn through the QIP route to fund our expansion plans."
Briefly explain to us your business model.
We are into basic food segment of food processing industry. Our product range includes Wheat and Rice. We are into rice processing and milling and we are the No.1 in the parboiled rice, which is considered the most difficult part in the rice processing. We have relative advantage in terms of the logistics facilities and strategic locations which are near to Punjab, Haryana and West Bengal.
Our peer group consists of Lakshmi Agro, REI Agro, KRBL, Kohinoor Foods and Chaman lal setia. Usher Agro operates in the basic foods segment of the food processing industry with a primary focus on Rice (non basmati), Wheat and products related thereto.
Tell us about the growth rate, turnover and margins of your businesses?
Our company has achieved a growth rate of 48% in the F.Y. 2008-2009 with a turnover of Rs2089.5mn with a net margin of Rs148.4mn. We aim to achieve a growth rate of 70% in FY10.
Brief us about your brand portfolio? What is your current share among organized players?
We are the only company into non basmati segment selling branded rice under the brand name "Rasoi Raja". We are the second largest player in the non basmati segment. The unorganized sector is 90% and the organized sector constitutes less than 10%.
Does monsoon impact your business?
To begin with we expect good monsoon this year. However, monsoon has almost negligible effect on the rice processing industry. Monsoon has an effect on the production of the paddy and we are into rice processing. Even if there is 50% fewer monsoons rains relatively to previous year we will be least affected.
Inflation has been soaring, how has it impacted your business?
Rising inflation has been pinching everyone now-a-days and we are no exception. But since we cater to the basic food industry of the country we do not expect much impact on our business.
Please brief us about your capex plans? How do you plan to raise the funds?
We are expanding our capacity by over 3,00,000 MT in our Buxar and Chhata plant. Our project of establishing a 16MW husk fired power plant is under construction under the name Usher Eco power which will further empower our power requirements. We plan to raise Rs1000mn through QIP route which will help the funds requirements for our expansion plans.
What is the breakup between institutional and retail sales?
Our most of the sales constitutes institutional sales.
What is your message to the shareholders?
Our message for our trusted shareholders is, "We are grateful for the trust and the belief you have shown in our company and in and we always thrive for increasing our shareholder’s wealth".