Emami Biotech Ltd, a part of the Rs 3,700 crore Emami Group of Companies, is planning to triple its edible oil refining capacity with an investment of around Rs 550 crore. This would help the company capture 10 per cent of the Rs 15,000 crore branded edible oil market in next three years, said a senior executive of the company.
Speaking to reporters after announcing South Indian actor Suriya as the brand ambassador for the company’s Healthy and Tasty Sunflower Oil in Chennai on Monday, Manish Goenka, director, Emami Group of Companies said, “We are expanding our capacity by doubling capacity in existing facility in Haldia and setting up new refineries, one each in South and West to cater to these regional markets.”
He added the company is targeting the Rs 1,500 crore market to become one of the top three players in the segment in the country, in the next three years.
The company is expanding the existing refinery in Haldia to process palm oil and soyabean oil from 1,000 tonne per day (tpd) to 2,000 tpd, with an investment of around Rs 100 crore. It is also setting up a 1,200 tpd refinery at Krishnapattinam, in Andhra Pradesh, for palm oil and sunflower oil, with an investment of around Rs 200 crore.
Both the expanded facility and the new refinery are expected to commence their operations in August, 2011. It presently depends on exclusive third party refineries to process sunflower oil.
Besides, it is also looking for space in Maharashtra and Gujarat to set up a refinery for palm oil and soyabean oil, with capacity of around 1,500 tpd for an investment of around Rs 250 crore.
The investment would come from internal accruals and debt. The company launched its edible oil business almost a year ago with processing and marketing sunflower oil, palm oil, mustard oil and soyabean oil under the brand Healthy and Tasty.
The brand has a presence in six states — West Bengal, Karnataka, Tamil Nadu, Orissa, Bihar and Jharkhand — at present. It is planning to complete its pan-India market expansion in the next 18 months with direct reach to around 500,000 outlets. It has identified strategy to build the brand around the product most on demand in each region. It has tied up with local celebrities in West Bengal to promote the mustard oil brand, which has more demand in the region, while in Tamil Nadu, it would focus on sunflower oil market.
The company is planning to spend around Rs 20 crore in building the brand in the six states, he added. It is expected to reach Rs 1800-1900 crore turnover in the present fiscal, aims to reach a turnover of Rs 5,000 crore in next three years, said Goenka.
