Surya Invests £500,000 to Reduce Carbon Footprint

5 Apr 2017

WORLD Food specialists Surya Foods has invested half a million pound to add five brand new Scania trucks to its delivery fleet helping to reduce the companies carbon footprint.

WORLD Food specialists Surya Foods has invested half a million pound to add five brand new Scania trucks to its delivery fleet helping to reduce the companies carbon footprint. The Scania G450 Highline 6X2 Tractors offer superior fuel consumption which will reduce the firm's carbon footprint. The Euro 6 compliant trucks also meet standards likely to come into force in the London Low Emission Zone. The state of the art lorries will be able to distribute an additional £12.5 million pounds worth of goods each year for the firm, which boats an annual turnover in excess of £120 million. The stylish Laila branded trucks, feature side reflective branding which is visible at night. Harwich-based Surya Foods is one of the largest suppliers of authentic world foods to the UK food sector. Its impressive world food range has seen it become the biggest supplier of world food lines into supermarket giants Tesco, Asda, Sainsbury's and Morrisons, with extensive independent retail accounts across the UK. Its leading basmati rice brand, Laila, features in the UK's top ten (2015 Nielsen data).  Suki Dulai, CEO of Surya Foods, said: "We are extremely proud to be investing significantly in our fleet and business generally. "As a major employer of local people in the Harwich area, investment in our business and its expansion generally greatly benefits the local community. Reducing our carbon footprint is also a key target for us a business and gradually replacing our fleet with the most environmentally friendly vehicles on the market is high on the agenda." Managing Director, Harry Dulai added: "The key driver for our chosen investment was based on low emissions and advanced technology allowing for an optimising transport solution with the help of Scania Fleet Management, thus accessing full visibility of vehicle movements, fuel consumption, idling, harsh braking and acceleration, which will ensure we can target the correct driver training. The Fleet Management Portal also gives us access to real time data and long term trends that will allow us to plan and manage both drivers and vehicles more effectively." The 66 plate trucks join Surya's existing fleet. Surya operates from several different areas in UK, and has its distribution centres spread across Europe, as well as buying offices around the globe. Its main hub is its 11 acre site in Harwich - home to its head office and some 500,000 sq ft of storage space. - ENDS - Note to Editors
  • Flying Trade Group operates across several sectors of the UK food and leisure industry - its main subsidiary businesses includingSurya Foods, one of the largest suppliers of authentic world foods in the UK, and Surya Hotels.
  • Established in the 1980’s, Surya Foods is a rapidly expanding, family run business. It supplies a variety of high quality, authentic ethnic products ranging from rice, flour, spices and sauces to snacks and savouries that are sold in over 30 countries worldwide. 
 
  • Surya Foods is one of the largest suppliers of authentic world foods to the UK food sector. Its unrivalled, extensive world food ranges has seen it become the biggest supplier of world food lines into supermarket giants Tesco, Asda, Sainsbury's and Morrisons, with extensive independent retail accounts across the UK. Laila basmati features in the UK's top ten rice brands,according to 2015 Nielsen data.
  • The Laila brand has expanded rapidly in recent years and now includes a complete range of flours, attas, ghee butter, pickles and curry pastes, sourced from around the world, to help UK consumers create delicious, authentic dishes in their own homes, using a brand they have come to know, love and trust.
  • Surya's evolving ranges cater to the South Asian, Korean, Chinese, Thai, West African, Caribbean, African, South American and Polish communities, with Arabic and Mediterranean products added to its world food line up in 2015. With 2,000 products available, Surya represents over 50 agency lines from some of the world’s leading companies.
  • Surya Hotels, Flying Trade's existing and expanding hotel portfolio, currently owns eight hotels across the UK, including Hallingbury Manor and the Kingscliff Hotels in Essex, the Duke's Head in Norfolk and Legacy Mill Hotel in Suffolk.
  • Surya operates from several different areas in UK, and has its distribution centres spread across Europe, as well as buying offices around the globe. Its main hub is an 11 acre site in Harwich - home to its head office and some 500,000 sq ft of storage space. Under the directorship of brothers Harry and Suki Dulai, the rapidly expanding, family run business, boasts an annual turnover in excess of £120 million

Indian Basmati Rice Industry viz a viz U.K & European Markets: Trends & Outlook

12 Apr 2017

Rice is one of the most crucial food crops in the world and a staple diet for nearly half the global population. Over 90% of the global rice output and consumption is centered in Asia, wherein the world’s largest rice producers China and India, are the world’s largest rice consumers.
Rice is one of the most crucial food crops in the world and a staple diet for nearly half the global population. Over 90% of the global rice output and consumption is centered in Asia, wherein the world’s largest rice producers China and India, are the world’s largest rice consumers. High domestic consumption and restrictive trade policies of several countries have restricted the international trade of rice to 6-7% of production. Food security objectives and the need to provide income support to domestic producers are the main reasons cited by countries, thus restricting rice imports. Among the several varieties of rice, Basmati is considered the most superior in terms of product characteristics and therefore, the most premium. Basmati rice constitutes a small portion of the total rice produced in India. By volume, the share of Basmati in total rice production is around 6% (as of FY2016) but by value, Basmati exports account for 60% (as of FY2016) of India’s total rice exports. Further, exports have increased at CAGR of 13% from 2010 to 2016. Industry Updates - Production Decline: Basmati paddy prices witnessed significant decline in FY2015 and FY2016 thus becoming a less attractive option for farmers, hence the decline in cultivation in this current year. The total area under cultivation is expected to have fallen from around 2.1million hectares in FY2016 to 1.6 million hectares in the FY2017. Resulting in a production decline from around 9.8 million tonnes to around 8.0 million tonnes during the same period Outlook – Origin & Global factors:
  • Raw Material and Finished Product Prices in Origin: Basmati Paddy Prices are up by close to 40% in last 5 months since the new crop arrived in Nov 2016. Basmati finished product for wholesale prices have increased by 35% in last 3 months and there has been a significant upward trend (in last 2 weeks on account) of depleting market inventories. Chart 1 & 2 provide insight on trend of prices over this period and current short term scenario.
  • Chart 1: Basmati Wholesale Prices: 2 Years Trend             Chart 1: Basmati Spot Rates, March17 W4
  • INR to USD currency trend: From close to an all-time high of 68.50 INR / USD in Oct, Indian Rupee has strengthened back by 7% in last 4 months, leading to lesser realization of exporters in INR terms and thus increased cost of exports. With an increase in the confidence level of FII’s post demonetization move in Nov 2016 and BJP winning in key state elections in March, INR is expected to be strengthening further. Chart 3 provides insight into the currency trend.
  • Chart 3: INR to USD,  1 Year Currency TrendGBP to USD currency trend: From 1.59 levels in March 2015, GBP has depreciated by around 24% and it stands at 1.215 levels in Mid-March 2017. A Depreciation of app. 15% in last 6 months itself is leading to higher cost of Import into U.K. Chart 4 provides insight into the trend.
    • Exponential increase in Ocean Freights: Shipping lines have cut capacities, enforced weight restrictions and implemented GRI’s. This has led to increases close to 500% in freight costs in last 6 months. Brown Basmati Rice being a relatively low cost import however, the fright cost component has increased from 1% to presently 7% of the U.K Basmati Manufacturers input cost. Chart 5 provides insight into the trend on Freights from India Ports to U.K Ports.Chart 4: GBP to USD, 2 Years Currency Trend
  • K Market reaction:
    • Due to various factors collated together, there is in general a shortage of Basmati Rice in U.K.
    • Shortage of containers and space with shipping lines and enforced weight restrictions in march 2017 are adding to the woes.
    • Some millers are already re-negotiating ongoing contracts.
    • Also with limited stocks to sell, sales are being affected on the basis of priority stock allocations.
    • Prices are expected to remain firm.
    • Brexit: With Re-negotiation of Brexit in process, the future impact on Imports, Trading and Tariffs is unknown and may require 2-3 years to understand the real impact.
    • Upcoming Issues:
        • Labour Rates and Operating Costs for Manufacturing & Distribution in U.K: Due to inflationary pressures and the evolution of markets taking into account factors like Brexit, operating costs in U.K have increased by around 4% in last 1 Year. This is adversely effecting the costs and therefore the need for price increases. 
        • Chart 5: 6 Months Teu Freights Trend from India to U.K Ports
        • Pesticide Restrictions and chances of industry to get skewed: With max allowed levels of 0.01% to be allowed and upcoming stringent controls post Dec 2017, there are chances of many fragmented segment players either moderating down or existing from the market. Also this will lead to a rise of a need to control at agriculture level from major players, which would come at a price and would increase costs.
        • (Source: ICRA, Agriwatch, Riceonline, ec.europa.eu, xe, APEDA, Oryza, Surya Internal Monthly Market Commentary, 7th April 2017)

Laila Basmati Fastest Growing Rice Brand of 2017

8 Nov 2017

Laila basmati has bucked the trend of a shrinking dry rice market achieving staggering triple figure spend growth during Ramadan, latest Kantar Worldpanel figures reveal.
Laila basmati has bucked the trend of a shrinking dry rice market achieving staggering triple figure spend growth during Ramadan, latest Kantar Worldpanel figures reveal. Laila's Ramadan sales were up 115%, against the backdrop of an overall Ramadan market which declined at 3% year on year (YOY)** and recorded the strongest volume sales uplift in the top 5 dry rice brands (Up 103%).*** The latest Kantar WorldPanel data also reveals the brand was the top performer annually with YOY growth of more than 60%. The leading, authentic basmati rice brand, among the UK Top 10, grew 64% during the last year*. The achievement is particularly impressive given the fact other leading brands, including Tilda and Uncle Bens, saw YOY slides of 17% and 12% respectively. Only the discounters managed to keep pace with Laila with Lidl, up 39%, and Aldi, up 19%, in YOY spend. Laila's impressive achievement is set against the backdrop of an overall dry rice category which has shrunk, ever so slightly, by 1% YOY.**** Harry Dulai, Managing Director of Surya Foods, owners of the Laila brand, said: "To achieve an annual 64% uplift in sales on a brand that is already in the UK top 10 is just remarkable and we are thrilled with the latest figures which affirm our position as a category leader.   "These charts reflect a concerted sales drive during the last year to grow the Laila rice brand and are testament to the enormous efforts across our business from production and manufacturing to sales and marketing.   "The Laila brand remains at the heart of Surya Foods as a business and we will continue to invest heavily in marketing and sales activity to see it grow further and also increase its appeal to a mainstream market that appreciate authenticity." The impressive Laila stats continued across the board and documented:
  • Annual growth of 64%*. *Kantar Worldpanel 52 w/e, 13thAugust, Total Dry Rice, value sales 
  • Triple figure spend growth (Up 115%) during the Ramadan Period in comparison to the overall market, which declined at 3% YOY. **Kantar Worldpanel 12 w/e, Total Dry Rice, 18th June 2017 
  • Excellent spend growth during the Ramadan period with the strongest volume sales uplift in the top 5 dry rice brands (Up 103%) *** Kantar Worldpanel 12 w/e, 18thJune, Total Dry Rice, Volume sales (000s)
  • Strong annual volume sales growth of 48% YOY in an overall category which saw a 1% volume decline YOY. ****Kantar Worldpanel 52 w/e, 13thAugust, Total Dry Rice, Volume sales (000s) 
  • The fastest growth rate in 10kg sector of 143% - smashing the market YOY average of 12% Kantar Worldpanel 52 w/e, 18thJune 2017, 10kg, Total Dry Rice, value sales 
  • YOY volume sales growth into triple figures, up 139% Kantar Worldpanel 52 w/e, June 2017, 10kg, Total Dry Rice, Volume sales 
As part of its continued commitment to expand the Laila brand, the world food specialists added a premium 1121 range to its top-selling line-up with the launch of Laila Xtra Basmati Supreme last year. 1121 is one of the world's most prized rice varieties with an exquisite aroma and delicate texture which is defined by its extra long slender grains. The range is aimed at an increasingly foodie UK audience and has already secured listings with national retailers Sainsbury's, Tesco and Asda. Laila's leading, traditional basmati brand features in the UK's top ten rice brands and is the top selling rice on the world food aisles of national retailers Tesco and Asda. - ENDS - If you are interested in seeing the full Kantar Worldpanel Dry Rice Category report please contact: pr@suryafoods.com   Note to Editors - Laila Basmati Rice  
  • Laila is one of the UK’s leading basmati rice brands and is owned by world food giants Surya Foods. It is the top selling rice brand on the world food aisles of national retailers Tesco and Asda. Established in 1996 to bring high quality, authentic basmati rice to the rice-eating Asian community of the UK, Laila has become one of the nation's favourites, popular with consumers and ethnic chefs alike due to its quality and authenticity.
  • The Laila brand has expanded rapidly in recent years and now includes a complete range of flours, attas, ghee butter, pickles and curry pastes, sourced from around the world, to help UK consumers create delicious, authentic dishes in their own homes, using a brand they have come to know, love and trust.
  • Surya Foods is one of the largest suppliers of authentic world foods to the UK food sector. Its unrivalled, extensive world food ranges has seen it become the biggest supplier of world food lines into supermarket giants Tesco, Asda, Sainsbury's and Morrisons, with extensive independent retail accounts across the UK. Laila basmati features in the UK's top ten rice brands (2015 Nielsen data).
  • Surya's evolving ranges cater to the South Asian, Korean, Chinese, Thai, West African, Caribbean, African, South American and Polish communities, with Arabic and Mediterranean products added to its world food line up in 2015. With 2,000 products available, Surya represents over 50 agency lines from some of the world’s leading companies.

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