The Rise and Challenges of Amira Nature Foods Ltd in the Global Rice Market

Amira Nature Foods Ltd is a global company headquartered in Dubai, UAE. The firm sells premium basmati rice as well as other related products and has international subsidiaries in India, Germany, the United States and Canada. It is known for its high quality of basmati rice, produced from the foot of the Himalayas, aged almost for a year to taste, and sold across the international chain of retail and wholesale.

Amira came with its IPO in the year 2012, and it is listed on the New York Stock Exchange, marking a long journey, while some financial dilemmas made it delist in the year 2020, but this company is still up in the global markets.

It was established by B.D. Chanana in the year 1915 under the name Nav Bharat as a small trading house in India, while trading locally grown beans. The company continues operations under the mantle of Karam Chanana, son of B.D. Chanana, in shaping its vision into the global market. Third generation, Anil Chanana, has renamed the company into “Amira,” which meant export premium basmati rice to international markets and set in 1968. Under the wing of Karan A. Chanana, the current chairman and fourth-generation leader of the company, Amira Nature Foods extended its brand all over the world and exported rice and other food products to more than 60 countries. In 2013, the company acquired Germany-based Basmati Rice GmbH, marking its very first acquisition-a significant move on the way to consolidating its position in Europe.

Amira Nature Foods hasn’t exempted itself from failure. In 2018, it experienced financial problems as it recognized a $134 million impairment because of the decreased quality of the rice stored. This was just the beginning of the shake-up for Amira, which would soon follow with its major debt restructuring. One severe consequence happened in November 2018 when Amira reduced its ownership in its Indian subsidiary, Amira India to 49.8% from 80.4% under a debt restructuring deal. This dramatically impacted the company’s financial statements, as Amira India would be recognized as a non-treatment of subsidiary; thus, the consolidated financial reports no longer accounted for it. Total assets of Amira Nature Foods Ltd shrunk to $26.2 million in 2019 from $512.8 million in 2018.

These financial issues combined with the inability of the firm to adhere to the timelines on the financial reporting fronts resulted in de-listing Amira’s shares at the New York Stock Exchange during the year 2020.  The firm, however maintains its existence and works towards revival in the international market.

Amira Nature Foods is known for producing superlative quality basmati rice, cultivated in rich soil that lies at the foot of the Himalayas. The rice undergoes one year of maturation, which deepens its taste and smell. Once cooked, Amira’s basmati rice boasts an unambiguously distinct floral and nutty fragrance, which has made the product preferred for home and restaurant use worldwide. Beyond the rice, the company products include specialty and organic rice, cooking oils, spices, flour, and wheat, barley, and legumes-a whole panoply of organic products. Products of Amira are packaged in notable metallic gold and distributed throughout the world so that they easily stand on shelves of retail outlets worldwide.

While the financial crisis and delisting by New York Stock Exchange pose significant challenges, a firm like Amira Nature Foods Ltd has persisted, mainly representing an important element in the global rice distribution industry. Here, the company is finding its way to restructure the operation and look for recovery in that market. To go back to Amira’s heritage of more than a century with promise in delivering worth products for food, I believe that such a legacy would be sustained into the future.