Lakshmi Overseas gains on plans of setting up subsidiary 'Pan Gulf' in Dubai

Lakshmi Overseas Industries is currently trading at Rs. 26.85, up by 0.15 points or 0.56 % from its previous closing of Rs. 26.70 on the BSE.

The scrip opened at Rs. 26.70 and has touched a high and low of Rs. 27.25 and Rs. 26.70 respectively. So far 12620 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 47.85 on 20-Jun-2013 and a 52 week low of Rs. 17.60 on 18-Nov-2013.

Last one week high and low of the scrip stood at Rs. 27.40 and Rs. 23.85 respectively. The current market cap of the company is Rs. 178.53 crore.

The promoters holding in the company stood at 52.44 % while Institutions and Non-Institutions held 11.20 % and 36.36 % respectively.  

Lakshmi Energy and Foods,formerly Lakshmi Overseas Industries, has ventured into setting up its subsidiary company in Dubai with 51% holding. The company has been registered in Dubai as ‘Pan Gulf Food and Industries FZ Co.’ (Pan Gulf), which will process, package and distribute LEAF'S basmati rice brands in GCC countries, Iran, Kingdom of Saudi Arabia, Yemen, Iraq and North Africa. Pan Gulf would also have stakes (49% holding) of His Highness Prince Mishaal bin Abdullah bin Turki bin Abdulaziz Al-Saud of Kingdom of Saudi Arabia who is the Chairman of Zad Investment Company and Anaam International Holdings - a leading food distribution company in the region and  V Raman Kumar, a venture capital investor cum entrepreneur.

Pan Gulf has taken warehouse in Jebelali for storing up to 100,000 tonnes of basmati rice in its first year of operations. The Company aims to set up a processing, polishing and packaging facility with a capacity of over 100,000 tonnes of basmati rice with an investment of over AED 100 million, in the next one year.

The company and its new brands have been launched in Dubai on February 25, 2014 by His Highness Prince Mishaal of Kingdom of Saudi Arabia. The supplies from LEAF India to Pan Gulf, Dubai will begin in March 2014. Middle East region accounts for over 4 million tonnes of basmati rice consumption every year and demand is ever increasing.

LEAF'S premium brands of basmati rice under brand name Lakshmi Foods-Big Dad, Uncle Chef, Lazeez and Afreen will be made available initially across UAE and other Gulf countries with the label 'Processed/Packed by Pan Gulf Foods and Industries FZ Co' and these brands will also be launched in India from March 2014. This would help LEAF India to increase its exports and improve its financials considerably.

Lakshmi Energy and Foods is a leading manufacturer of non basmati white rice. The company is also engaged in production of edible oil, de-oiled cakes and other ancillary products.