3F Group setting up power projects in Andhra, Chattisgarh

The 3F Group is setting up power projects in Andhra Pradesh and Chattisgarh at a total investment of Rs 60 crore. This apart, it is also setting up a Rs 15-crore plant in Sri Lanka for manufacture of products like margarine and other bakery fats.

The product range of the Tadepalligudem-based Fo-ods, Fats and Fertilisers Limited, the Rs 600-crore Group's flagship company, includes oils of rice bran, soya bean, sunflower, groundnut, sesame and palm apart from hydrogenated fat for industrial use, vanaspati, bakery shortening and margarine. Speciality fats that are used in the chocolate, confectionery and cosmetics industries are also manufactured by the company.

Some of the other companies under the group include Goenka Palm Agro Tech Limited that is into palm oil development, Asia Pacific Commodities, a trading concern of the 3F Group, and Golden Needle Apparels that is into manufacture and export of readymade garments.

The group exports its products to countries like Japan, Singapore, Malaysia, Holland, Germany, UK and Africa and is targeting to clock a turnover of Rs 750 crore this fiscal.

Speaking to Business Standard, O P Goenka, technical director of Foods, Fats and Fertilisers Limited, said, "We are setting up a power project in Tadapalligudem at an investment of Rs 25 crore. The project, which will be able to supply 7.5 MW of power a day, is likely to be commissioned by the end of this month."

Goenka is also the technical advisor for the other companies of the 3F Group.

"We have entered into an agreement with the state government to supply 5 MW of power per day and the remaining 2.5 MW of power will be used for our ventures," Goenka said.

"We are also setting up a 12.5-MW power project in Chattisgarh with a local partner at a cost of Rs 35 crore. It is likely to be commissioned in December this year," he added.

"Apart from this, we are also setting up a plant in Tadapalligudem at a cost of Rs 9 crore," Goenka said.

"The plant will not only be used for fractionation process of edible fats but will also be used for manufacture of herbal compounds. These compounds can be used by companies for manufacture of nutrition-based products for cardiovascular diseases, cancer and blood pressure," he added. The plant is likely to become operational in the next four months.

"In the next three months, we are also looking at setting up a Rs 5-crore palm oil crushing plant near Tadapalligudem," Goenka said. The group has palm oil plantations in Andhra Pradesh and Karnataka and is looking at venturing into Kerala and Tamil Nadu too.

"We are also setting up a 100-tonne plant in Sri Lanka for manufacture of margarine and other bakery fats that is likely to become operational on March 15 this year," Goenka said. "The plant is being set up at an investment of Rs 15 crore," he added.

"This apart, we are also looking at diversifying into other areas. A sponge iron and steel plant is being envisaged in Chattisgarh. It is, however, too early to disclose details on this project," he added.

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Power drive

• The 25-crore power project at Tadepalligudem is likely to be commissioned by this month end
• Group entered into an agreement with the state government to supply 5 MW of power per day
• Also setting up a 12.5-MW Rs 35-crore power project in Chattisgarh with a local partner