Bangalore leading exporter of.... Roses!

Ok,I know its not a new thing about Bangalore being famous for it's export of roses(one would wonder where is the place?)..Here is an interesting article from the local newspaper- Deccan Herald from Feb last year.Every Valentine's day ,expect such an article in all the local newspapers(year over year:)

Love blooms in Bangalore roses
From Bala Chauhan DH News Service Bangalore:

In the global hierarchy of rose cultivation during the Valentine’s season, Bangalore ranks “second” in the world, producing as it does 28 million stems after Ecuador’s 55 million and well ahead of Pune’s 2 million. The global market of roses during the Valentine’s season, beginning February 2 to 10, is “180 million stems out of which 30 million stems are from India. Red roses comprise 80 per cent of this chunk. The consumption of roses in the domestic market is 10 million stems, out of which 90 per cent is red,” says Ramakrishna Karuturi, managing director, Karuturi Networks Limited, a leading flower export house in Karnataka. The most popular varieties of red roses: Grand Gala, Passion and First Red are grown in Bangalore, Doddaballapur, Hosur and Pune. “Bangalore is said to produce one of the finest qualities of red roses in the world after Kenya. At an altitude of 1100 metres, night temperature of 12-14 degree Celsius and day temperature of 28-32 degree Celsius, between November to February, it has the ideal climate to grow roses. In the international market, a single stalk of red rose from here can fetch as much as Rs 30,” he says.

India would have topped the chart in rose cultivation throughout the year if it weren’t for the adverse taxation by the State and Central governments. “There’s an 80 per cent tax on Air Turbine Fuel (ATF) in India as compared to nil in other countries on the out-borne cargo. The Karnataka government charges 38 per cent sales tax, while the Centre levies 16 per cent plus 20 per cent, as Customs and Central excise,” he says Exceptionally lucky This year Valentine’s season has been exceptionally lucky for rose growers. “There has been a 100 per cent rise in the wholesale price of roses this year, from last year’s Rs 4 per stem to this year’s Rs 7.95,” adds Mr Ramakrishna. A look at Bangalore’s consumption of red roses during the Valentine’s season shows a three-time increase from a normal of Rs 6 to Rs 8 for a single stalk to Rs 15 to Rs 25. According to Ms Padmaja Kamisetty of Ohana, the boutique of exotic flowers sells around 2,000 red roses, of export quality, at Rs 20 to Rs 25 for a single stem during the season. The wholesalers in Bangalore also report staggering figures, of selling around one lakh single stems of red roses between February 11 and 13 alone. “In the last three days, we have sold about 5,000 bunches of roses, out of which, 50 per cent are red ones,” says wholesaler M Kalidasa Raj, proprietor of Sneha Florists.

Look at the auction figures of roses. On Sunday, the International Flower Auction Bangalore (IFAB) at Hebbal auctioned 98,000 single stems of roses between Rs 120 and Rs 180, for a single bunch. On Monday, the figures, though dipped slightly, remained over 80,000 between Rs 100 and Rs 150. One bunch has 20 single stalks, he says. And it’s not just the local market that blossoms out during the Valentine’s week. “Export of flowers, especially roses is maximum during this season. We earn around Rs 10 crore during the Valentine’s season, 80 per cent of which comes from the sale of roses. Karnataka’s average export of flowers is annually worth Rs 40 crore,” says Mr J K Vasanthkumar, director, horticulture department.

Another recent article from the Times of India this year:

Now, Indian takeover roses

MUMBAI/BANGALORE: One day after Valentine’s Day, there’s news of a deal that’ll make the global Indian takeover come out smelling of roses. Next Valentine’s Day, when lovers and spouses gift roses across the world, chances are that most of those flowers will have an Indian imprint.

That is because Karuturi Networks, a little-known Bangalore company, is making a big move in the $80-billion floriculture space which will make it the largest rose grower in the world. It is close to acquiring Hollandbased Sher, the world’s largest producer and supplier of roses for $40 million. Sher’s greenhouses in Holland, Kenya and Ethiopia produce 600 million roses annually.

When contacted, Ramakrishna Karuturi, MD of Karuturi Networks, confirmed his company is in the process of wrapping up the deal. The company recently raised a GDR issue of $25 million.

"This money will part-fund our in-organic growth. Also, UTI Bank has committed us an external commercial borrowing of $30 million.We are getting another ECB from a Spanish bank, while the rest of the funds will come from internal accruals,"he said.

It all began on Valentine’s Day 12 years ago when Karuturi, a mechanical engineer,was sniffing around Bangalore for roses to take to his wife. Finding none, he decided to step out of the cable business he was running and plant high-value stem roses for a living. The man who set up Karuturi Networks — a company that processes 12 million roses annually — is now set for a whiff of the global scene.

Karuturi Networks has 60 hectares of land in India and Ethiopia under rose cultivation. Besides the European company’s facilities,Karuturi will also get a strong brand in Sher. The company is also in negotiations with Fisher, an Ohio-based plant material and seedling company, for a $30-million acquisition.

"These expansions will make us the lead player in the world flora industry in all verticals like fresh cut flowers, plant material, breeding and green house infrastructure by 2010,"said Karuturi.