Mishtann Foods looks to import rice from Thailand; stock down 4%

Shares of Mishtann Foods were in the focus on Thursday after the company announced that it has incorporated a new subsidiary in the United Arab of Emirates (UAE) to import Thai rice and Jasmine rice from Thailand. Shares of the company nudged higher during the session, before giving up gains.

BSE-listed Mishtann Foods has incorporated a wholly owned subsidiary company named 'Grow and Grub Nutrients FZ – LLC' in UAE to focus on international trade with increased exposure in various untapped markets in its growth journey across geographical boundaries, the company said in an exchange filing.

According to a report from Fitch Solutions, Rice production for 2023 is set to log its largest shortfall in two decades. The war crisis in Ukraine, coupled with weather woes in rice-producing economies like China and Pakistan is likely to contain the supply for paddy-crop. Mishtann Foods will import Thai rice and Jasmine rice from Thailand through its subsidiary.

This expansion is a significant milestone for our company as it will enable us to expand our area of operations and reach out to a new customer base by providing them with wider options and serving our customers better, said Hitesh Patel, Managing Director, Mishtann Foods.
"The new subsidiary will allow us to tap into new markets and leverage the existing relationships that we have built with our customers across geographical borders. It will enable us to strengthen our position as a leading agro-products company in India and abroad," he said.

Shares of Misthann Foods rose about 2 per cent to Rs 7.94 on Thursday, before it saw profit booking and dropped to Rs 7.52 levels by falling 3.71 per cent. The company was commanding a market capitalization of little more than Rs 750 crore during the session.

Mishtann Foods is a homegrown agro-food product company with a primary focus on various types of Basmati rice. The company also has a sizable presence in the wheat and pulses segment. The company's rice processing facility is located near Ahmedabad, Gujarat which has an annual capacity of 1 lakh metric tonnes.

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