CALL CLOSED (LONG TERM INVESTORS – HOLD IT) – Buy Karuturi Global around Rs.10, Current market price: 11.70. Long term target: 24.

Karuturi Global is the world’s largest producer of roses, cultivating 585 million stems per annum. Boasts over a decade of experience in rose cultivation with operations in Ethiopia, Kenya and India. Strategic foothold in Ethiopia and Kenya would enable the company to cater to burgeoning demand from Europe and augment its global market share.

BSE announcement as on 08-12-08
Karuturi Global Limited has informed the Exchange that “Our company Karuturi Global ltd. the largest grower and exporter of Roses in the world with presence in India, Kenya Ethiopia, Dubai and Holland has concluded a new contract for supply of 50 million roses, an increase of 28% over 36 million roses supplied in the previous year, from Edeka, one of the largest super markets network in Germany. This order comes at an increased price ranging from 20% to 33% above that of the price received this year. This order will be executed through its various production facilities.

The company also has recently started supply of roses to Jambo, a reputed supermarket chain in Holland. Currently 75% of the company’s production is on firm price contracts with leading super markets as customers. The company is currently negotiating contracts for the next year and expects a significant price increase from that of the previous year.

The company also is on the threshold of getting Fair trade certification in addition to it’s exiting certifications of MPS and Fair Trade Fair Plant certifications. This export order is one of the largest deal of its kind in the $80 billion global cut flower industry. With this order, cut roses from the Karuturi’s stable will find themselves on the shelves of some of the leading super market chains across Germany, United Kingdom and France. This new contract is a testimony to the faith reposed by customers on Karuturi’s quality, commitment, timely supply and strong customer relationships”.