FMCG Company Acquires Single Largest Stake in Virat Kohli – Backed Digital First Brand ‘RAGE COFFEE’
Rage Coffee, co-owned by Bharat Sethi, Sixth Sense Ventures, and prominent figures such as cricketer Virat Kohli and actor Rannvijay Singha, has rapidly become a favourite among new-age consumers.
Today, the shares of GRM Overseas Ltd jumped 2.10 per cent to an intraday high of Rs 274.10 per share from its previous closing of Rs 269.10. The stock’s 52-week high is Rs 286.15 while its 52-week low is Rs 114.15. The company has a market cap of Rs 1,600 crore.
GRM Overseas Limited, a leading player in India’s FMCG sector and a top exporter of premium basmati rice has announced a significant strategic investment in Swmabhan Commerce Pvt Ltd, the parent company of the digital-first coffee brand, Rage Coffee. GRM Overseas has acquired a 44 per cent equity stake through a combination of primary infusion and secondary buyouts, marking a major step forward in its expansion into the fast-growing Indian coffee market.
Rage Coffee, co-owned by Bharat Sethi, Sixth Sense Ventures, and prominent figures such as cricketer Virat Kohli and actor Rannvijay Singha, has rapidly become a favourite among new-age consumers. Known for its innovative in-house blending processes and patented packaging, the brand offers a wide range of coffee products, including instant coffee in freeze-dried, spray-dried, and agglomerated forms, as well as whole beans, ground coffee, and ready-to-drink beverages.
Rage Coffee's robust omnichannel distribution network spans D2C platforms, leading e-commerce and quick commerce marketplaces, over 1,000 HoReCa outlets, and more than 5,000 general trade and modern retail touchpoints across India.
The acquisition aligns with GRM Overseas' broader strategy under its newly launched platform, 10X Ventures, which aims to invest Rs 200 crore in digital-first, new-age D2C brands. Rage Coffee is the first significant investment under this platform, signalling GRM's intent to diversify and strengthen its portfolio in the FMCG space. The company plans to capitalize on its vast distribution network to expand Rage Coffee’s presence both domestically and internationally, potentially supplying coffee beans and soluble powder to existing clients in international markets and opening coffee shops under the Rage Coffee brand.
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With this acquisition, GRM Overseas strengthens its position in India's packaged food market, catering to the evolving preferences of new-age consumers. The company, which reported Rs 1,345 crore in revenue and Rs 105 crore in profits for FY24, aims to derive 20 per cent of its future revenue from new-age companies like Rage Coffee while maintaining its leadership in the rice, atta and edible oil sectors. This strategic move reflects GRM Overseas’ commitment to growing its presence in the FMCG sector, offering consumers a diverse range of high-quality, convenient food products that align with modern lifestyle choices. GRM Overseas also recently appointed Bollywood actor Salman Khan as its brand ambassador for the company's 10X brand range of basmati rice and the 10X Shakti range of wheat flour.
About the Company
GRM Overseas Ltd, a leading Indian company in the basmati rice industry, mills, processes, and markets both branded (like their 10X brand) and non-branded basmati rice for both domestic consumption and international export. Their product range goes beyond just basmati rice, also including atta flour (Shakti Chakki Fresh) and ready-to-cook biryani kits in various regional styles like Moradabadi, Hyderabadi and Lucknowi.
As of June 2024, the company's promoters bought 73,000 shares and increased their stake to 72.29 per cent and FIIs increased their stake to 0.67 per cent compared to 72.16 per cent and 0.26 per cent, respectively in March 2024. The shares of the company have an ROE of 21 per cent and an ROCE of 15 per cent. The stock gave multibagger returns of 2,090 per cent in 5 years and a whopping 5,720 per cent over a decade. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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