Three firms link up to export Hom Mali 105

Rice innovation has promise

Three firms link up to export Hom Mali 105

ARANEE JAIIMSIN

Patum Rice Mill and Granary Plc is working with Thavatchai Inter Rice and a state agency to invest between 100 million and 120 million baht in 2008 to expand sales of its rice products to tap huge demand in overseas markets. Thai Hom Mali rice 105, jointly developed by the two companies, was named one of the 10 most innovative business ventures of 2007 by the National Innovation Agency (NIA).

In collaboration with the Institute of Food Research and Product Development of Kasetsart University, the companies began studies in 2005 to produce innovative rice products. The NIA provided 1.6 million baht for the project.

A 5.2-million-baht prototype factory opened earlier this year in Pathum Thani. The factory can process 100 kilogrammes of Thai Hom Mali rice 105 per day.

The consortium plans to build a new 100-million-baht commercial-scale factory with production capacity of one tonne per day. Construction is scheduled to start early next year and it would likely become operational in early 2009, said Somkiat Makcayathorn, managing director for Patum Rice Mill and Granary.

Mr Somkiat expects to hold at least 50% in the new venture while the rest would be split between Thavatchai Inter Rice and the NIA.

Mr Somkiat said new product sales from the prototype factory would begin countrywide in March at Boots stores and Tops supermarket outlets.

The product would be priced at about 150-200 baht for a 400-gramme pack. Thai Hom Mali brown rice 105 would be priced higher than in European markets.

''We will serve domestic demand first and the rest will be exported, despite the high demand in export markets,'' said Mr Somkiat.

The business was expected to generate 20 million baht of revenue in 2008. After a new factory in Nakhon Ratchasima begins commercial production, sales are expected to expand to 200 million baht a year and export volume would increase dramatically, said Mr Somkiat.