Amrit Banaspati to redo products divisions

Punjab based Amrit Banaspati Company Limited, a diversified group with stakes in edible oil, paper, dairy and real estate businesses, has decided to restructure different segments of its products divisions.

The company would consolidate its edible oil business under Amrit Banaspati Company Limited, paper business under ABC Paper Limited and dairy and real estate business under Amrit Corporation.

The company today got the approval of the Punjab and Haryana High Court for the demerger of its different divisions into different entities.

The three companies would have different managing directors headed by a common chairman.

Talking to Business Standard, the Vice-Chairman and Managing Director of ABCL, Jagesh Khaitan, said the company envisaged a turnover of Rs 1,000 crore in 2010, from the present Rs 600 cr in the edible oil business.

"We are market leaders in north with our vegetable oil brand 'Gagan' and refined oil brand 'Ginni'. The company has decided to roll out high value added products like low fat margerine and peanut butter to explore the niche market.

The company also rolled out branded rice and salt under the Gagan brand.

Khaitan added that the increase in revenue would be obtained from deeper penetration into existing markets (Punjab, Haryana and Himachal), simultaneouly focusing on new parkets like Uttar Pradesh and Rajasthan.

He expected some amendments in the tax structure in Uttar Perdesh that hampered their growth in the market that was birth place of their edible oil business.

A captive co-generation power plant of 2 Mw at an investment of Rs 8 crore at the Rajpura plant will be operation after one year taht would substantially cut the cost, said Khaitan.

Beisdes a dealer network of 1,100, the company has tied up with Reliance, Subhiksha, Vishal Megamart, Big Bazar, Pyramid and Spencer for the retail network.