Amira Foods (ANFI): Creates Rice Value Chain in India and Abroad.

Destiny A. Lopez  |

Today, Amira Foods (ANFI), a processor, distributor and marketer of packaged Indian specialty rice, Basmati rice, revealed a milestone operational development. Along with United Phosphorus Limited, a crop protection and seed provider, the companies have announced that they have, according to their official press release, created a strategic alliance in order to forge a productive rice value chain in India and abroad.

Amira Nature Foods is an important off-taker of rice from the farmers with capabilities of quality milling and marketing of its rice brands and we look forward to our alliance with UPL,” Karan A. Chanana, the Chairman of Amira.

Both companies have their individual strengths, having moved their ways to the forefront of their respective industries. For instance:

  • Amira, primarily selling Basmati rice, conducts sales across five continents through its distribution network in developing and emerging markets.
  • United Phosphorus Limited offers rice technologies for farmers in the United States and abroad through its flagship company, RiceCo. And, the UPL’s digital advisory services company, Adarsh Kisan Services, provides regular agronomic support to farmers.

Founded in 1915, Amira has evolved into one of the leading global providers of packaged rice products. Headquartered in Dubai, the company also boasts offices in, among other locations, India, the United Kingdom, and the United States.

This development is part of a string of positive developments for Amira. Earlier this month, Seeking Alpha provided an optimistic outlook for the company. “On the positive side, we have basmati prices increasing and the whole ANFI postponed positive growth story on the table again,” said Sven Carlin of Seeking Alpha. “Any kind of positive news would propel ANFI's price like ANFI managing to restructure its debt with a lower interest rate or new contracts with large customers. I expect ANFI's price to return to $13 in the next 12 months based on increased earnings due to higher basmati prices and a fair valuation.”

Furthermore, in July, the company revealed a solid financial performance through its year end 2016 results. “We are pleased to report our results for the fiscal year ended March 31, 2016. As we noted previously, 2016 was a challenging year due to a number of factors that we believe to be largely temporary in nature,” said Bruce Wacha, CEO of Amira. “Nonetheless, we maintained margins at historical levels – generating adjusted EBITDA of $74.7 million and adjusted EBITDA margins of 13.3% for the year. We have grown our business substantially since the time of our initial public offering in 2012 and we increased revenues by more than 60% since that period. We continue to maintain strong relationships with our major customers and now that we have reported our results for fiscal 2016 we look forward to returning to our growth model in 2017 and having a deeper engagement with our investors.”

Thanks to its recently announced strategic alliance with a leading crop protection and seed company, Amira Foods is positioned to continue moving forward with its financial and operational objectives. The investment community looks forward to further developments from the company.

To learn more about Amira Foods, visit www.amira.net.


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Companies

Symbol Name Price Change % Volume
ANFI Amira Nature Foods Ltd 0.37 -0.02 -5.98 413,329 Trade

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