 "Emami group promoter Aditya Agarwal (right) at the launch of an Emami product")
Aggressively planning to double its market share in the edible oil segment, Emami Agrotech has lined up an investment outlay of Rs 685 crore to raise production, while roping in a UK-based expert to help in the endeavour.
Of the 18 million tonne market, the company has a market share of 5.5 per cent. "We plan to increase this to 10-11 per cent in the coming two years,” said Manish Goenka, group director.
In the next 15 months, the company will be coming up with two new plants. The first one, to be set up in Gujarat, will have a production capacity of 3,000-4,000 tonnes in the palm and soya oil segment, where an investment of Rs 350 crore will be made. The second plant, to be set up in Rajasthan, will produce mustard oil only; Rs 80 crore will be invested. And, another Rs 200 crore will be spent to increase production from its Haldia unit in West Bengal.
Another plant is under consideration in Andhra Pradesh, where Rs 55 crore will be spent. “While the plants in Rajasthan and Gujarat will come up in the next 15 months, the expansion of Haldia will be completed by this December,” said Goenka.
Palm oil constitutes 75 per cent of its total oil sales. Soya, sunflower, rice bran and mustard oils are the rest. This will change, with the company planning to increase its sales from sunflower and soya oil varieties.
“Presently, sunflower oil accounts for 15,000 tonnes of the total sales, which we plan to increase to 60,000-70,000 tonnes over the next two years. Also, sales from soya oil will increase from the present 100,000 tonnes to 300,000 tonnes,” said Goenka.
It is also getting James Fry from the UK, an expert in the commodities space. He will be aiding the company in predicting of market trends. Fry says edible oil prices are likely to drop during the coming festive season this year, as production will increase.
