Apart from catering to the West Asian and North African market, it is also setting up a new unit in Sharjah with an investment of Rs 8 crore.
Speaking to Business Standard, Aries Agro Ltd Executive Director Rahul Mirchandani, said, "Currently our manufacturing capacity (on a single-shift basis) is to the tune of 12,000 tonnes between micro-fertilisers and animal feeds with the facilities spread over five locations."
The company has its plants in Mumbai, Hyderabad (two units), Bangalore and Kolkata. Further in order to cater to the domestic market we are setting up new unit in Lucknow, Ahmedabad and Manvel near Mumbai with a project cost of Rs 18 crore. The commissioning of new units (expected to be operational by September 2008), will enable the company to achieve a production capacity of 108,000 tonnes.
He added that the usage of micro-nutrient in Indian agriculture is 237,000 tonnes in 2007. The usage is likely to touch 1031,000 tonnes by 2025, according to the Indian Economic Data Research Centre. "But if we see the current scenario, with the growing awareness level, the above figure would be achieved much before 2025," he said.
In the last fiscal year, the turnover of the company was Rs 103 crore and this fiscal year it is to touch Rs 150 crore. Also, in the last fiscal the company achieved a growth of 40 per cent. He added that Andhra Pradesh and Maharashtra are the main growth driver for the company.
In order to create awareness and to facilitate the farmers further, the company will launch 93 more rural retail vehicles by August this year taking the tally to 100. "These rural retail vehicle will cover the villages where our distribution network is not there, also it will serve as advisory services and it will be equipped with soil testing technology.
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Further it will house a PDA system to consult with R&D team. These vehicles will cover atleast 6 villages per day.
Commenting upon overseas expansion, he said, "We are setting up a new unit in Sharjah at an investment of Rs 8 crore and will cater to West Asia and North Africa." He also said that the company plans to step in Europe in the next two years.
Also, the company has set up its distribution centre in Nepal, Bangladesh and UAE. He added that proceeds from the IPO (about Rs 58 crore), which was launched last year will be utilised to fund the expansion.