VVF targets Rs 4,000 crore turnover in 3 yrs

VVF, a city-based manufacturer of personal care products and oleo chemicals, is planning to nearly quadruple its sales to Rs 4,000 crore in three years from the current annual sales of Rs 1,100 crore.

As part of its growth plan, the company will expand its product portfolio in the FMCG sector and set up more production facilities in India and overseas.

The company will primarily fund the expansion through internal accruals and a part will be financed through the initial public offer, which is expected in two years.

VVF's personal care products portfolio consists of branded soaps such as Doy Care for kids, Aloe Vera, Jo and Shiff. Jo's lemon variant has superseded brands such as Hindustan Unilever's Liril and Godrej Consumer Products' Cinthol.

Piyush Jindal, senior vice-president, personal care products, said the company plans to set up a 150,000 tonne green-field project in Indonesia with investments of about Rs 400 crore.

The facility in Indonesia will help the company to save costs as prices of crude palm oil, the key raw material for manufacturing soaps, are going up in the country. India chiefly imports crude palm oil from Malaysia and Indonesia.

VVF is also considering brand extensions into categories such as skin care, toiletries and hair care. The company has a distribution network of 10 lakh outlets.

"We will launch two brands from our Baddi plant by the end of this financial year," he added. The company is scaling up capacities at its Taloja plant by 50 per cent and setting up a new plant at Baddi, Himachal Pradesh.

As part of its overseas expansion, the company is scaling up capacities at its plant in Kansas, USA, which VVF recently acquired from Colgate Palmolive, and at its plant in Dubai.

The company also has a plant in Kutch, which does contract manufacturing for clients such as Johnson & Johnson. It is also looking out for acquisitions in the country.

The capacity of its Taloja plant would go up from 60,000 to 90,000 tonnes. Its Baddi plant has a capacity of 30,000 tonnes. The company has been registering a compounded growth rate of 27 per cent over the last few years.