Emami Ltd, the Rs 700 crore personal and healthcare product manufacturer, has set up its second production facility in Assam for an investment of Rs 50 crore.
The manufacturing unit would produce creams, lotions and ointments.
Spread over nearly 50,000 sq meter, the plant has an installed capacity to produce 5,400 tonnes of cream, 1,800 tonnes of lotion and 900 tonnes of ointment.
The popular brands of the company in this segment include Boroplus Antiseptic Cream, Himani Fast Relief, Boroplus Advance Moisturising Lotion, Fair & Handsome.
The plant will manufacture 17 crore Boroplus Antiseptic Cream, Fair & Handsome sachets, 11.5 crore ‘dibbis’ of Menthoplus Balm and 3 crore bottles of Boroplus Lotion per annum.
The unit has capacity for further expansion both in terms of volume and additional products. In the second phase, the unit will be able to produce 41.5 crore sachets of Navratna Oil, 3.5 crore bottles of Navratna Oil, 3.5 crore ‘dibbis’ of Himani Fast Relief, and 2.5 crore bottles of Menthoplus Balm per annum.
The ISO, GMP and TPM certification processes for the new Abhoypur unit in Assam has already begun.
Emami’s existing plant at Amingaon in Assam produces 100 crore sachets of Navratna Oil, 25 crore Boroplus Antiseptic Cream, Fair & Handsome tubes, 19 crore Boroplus Antiseptic Cream, Fair & Handsome sachets, 1.8 crore bottles of Menthoplus Balm, 3.5 crore bottles of Navratna Oil and 2.5 crore bottles of Boroplus Lotion per annum.
According to R S Agarwal, Joint Chairman of Emami Group of Companies, “The new unit at Abhoypur is a reflection of our commitment to innovation and investment at a time when the world is reeling under a severe economic recession. The new project also demonstrates our faith and conviction towards the industry friendly environment in Assam.”
The Joint Chairman of Emami Group of Companies, R S Goenka, said, “We decided to come up with the second unit in Assam as we found the state’s business climate congenial for further investments. The new unit will go a long way in catering to the growing demand for our products on a national level in a cost effective manner. We enjoy a special emotional involvement with Assam as Emami Ltd was the first company to obtain licence from the state government for manufacturing cosmetic and ayurvedic products.”
According to Managing Director of Emami Sushil Goenka, “More than 90 per cent of our staff have been locally recruited.”
The Emami Group was recently hit by the March 2008 Union finance ministry’s decision to cut excise exemption benefit for industries in North-East by 50 per cent under the centre sponsored industrial policy.
Emami, thereafter had indicated to put on hold its future plans in Assam if the decision was not rolled back.
Sushil Goenka said Emami is still hopeful that the withdrawal of excise benefit decision will be reviewed.
"I have been assured by the chief minister of Assam that the state government will take up the matter with the Centre," Goenka said.
Emami has also demanded the Assam government to bring down VAT on ayurvedic medicines from present 12 per cent to 4 per cent, to be at par with other states.
It has also demanded a review of Entry Tax that is currently levied on many products sourced from other states.
With Emami sourcing most of its raw materials from outside Assam, the prevalence of Entry Tax affects the balance sheet of the company.
Assam chief minister Tarun Gogoi, while assured Emami that the matter would be taken up with the Prime Minister, has invited the company to also set up a unit to produce medicinal products as medicinal plants are in abundance in Assam.
"All the raw materials that are required to manufacture medicinal products are available in Assam. It would therefore be cost effective for the company as well as give a fillip to our farmers," said Gogoi.
