Jivo Wellness, a unit of Akal Information system, which is into imports, production and marketing of Canola cooking oil, is eyeing 10 per cent market share in the market for branded edible oil in the next five years.
Jivo Wellness plans to invest Rs 200 million this year in this business and expects around Rs 1,000 million annual turnover by 2012.
The company at present imports Canola oil, which is made from crushing of Canola plant seeds, from overseas suppliers and redistribute it in India. Canola is said to have the highest amount of unsaturated fat among all the oil brands in the world.
RP Singh Kohli, director, Jivo Wellness maintained the company is setting up a plant in the Sangrur district in Punjab to make a firm foothold in the edible oil market.
The company was setting up crushing-cum-refining facility at Sangrur in Punjab with an investment of Rs 45 crore. The plant would have crushing capacity of 100 tonnes per day and would be operational within one year. To reduce its dependence on imports, Jivo has started Canola plantations in northern India. It has already started Canola plantations in Punjab, Rajasthan and Uttar Pradesh on about 10,000 acres of area and manages to crop around 20 per cent of the requirements at this stage.
The company, which plans to introduce the canola oil in selected markets to begin with, would soon have a pan-Indian presence.
The per capita consumption of edible oil in India is 11.5 kg per year, which is below the world average of 18 kg. With the overall growth in demand for edible oils expected to grow at 6 per cent per annum, edible oil demand in India is expected to touch 21.3 million tonnes by 2015.