A simple check of prices shows that 1 kg of Basmati rice classic of India Gate sell for about Rs.200 while 1 kg of traditional basmati rice of Daawat sells for about Rs.163. This is a pretty big difference considering raw material prices are going to be almost the same for both brands. The difference I think comes from the brand value of India Gate vs Daawat and the fact that India Gate basmati is aged for 2 years. Also, I notice that Daawat frequently gives 25% Free on most of its packs which should also hurt its margins as the numbers show. KRBL seems to be a far superior company IMHO.
Disclosure: Tracking the sector, no holdings.