Cargill India Ltd, known for its Nature Fresh and Engine brands of edible oil, is expecting a 15-20 per cent growth in sales volume in its packaged oil business in the country.
The company is currently doing a pan-India business of Rs 2500-3500 crore per annum in the edible oil segment depending on the commodity prices.
"Our company's turnover stood at around Rs 5000 crore in the last fiscal. The edible oil business contributes 60 per cent of our turnover. We do a business of Rs 2500-3500 crore every year in the edible oil segment and this fiscal we are looking at a 15-20 per cent growth”, said Siraj Chaudhry, chairman of Cargill India.
The market size for consumption of edible oil in the country stands at 15 million tonnes and it is growing at the rate of six per cent per annum. The organized edible oil business is 25 per cent of this market and Cargill India has a share of 14 per cent in the packaged oil market, said Chaudhry.
The company, however, is a dominant player in Maharashtra where it has a share of 40 per cent.
The Orissa market accounts for 10-15 per cent of the total edible oil business of the company, he added.
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Asked on new lines of business being contemplated by the company, Chaudhry said, “We are looking to set up a corn processing facility in the country. Corn processing is largely concentrated in South India or on the Bengal-Bihar border but we are yet to identify any location for our proposed facility.”
Cargill is also eyeing to tap the South India market in a big way. Presently, the company is only supplying sunflower edible oil to a niche customer base in this market.
“If we need to complete our portfolio, we got to have a strong presence in the south India market. This can be achieved either through setting up an edible oil refinery in south India or acquiring an existing refinery”, Chaudhry informed.
The company is presently running three refineries- Kandla (Gujarat), Kumkum near Pune and Paradip. The combined production capacity of these three refineries is 3500 tonnes per day.
The company has so far invested Rs 125 crore in two phases on its Paradeep unit which has a capacity of 30,000 tonnes per month.
Cargill India on Thursday, launched its 'NatureFresh Shakti” brand of refined palmolein oil. The palmolein oil is fortified with Vitamins A, D, and E which the company claimed to have done for the first time in the industry.