Jayant Agro plans new launches

The world's largest manufacturer and exporter of castor oil and its derivatives, Jayant Agro Organics (JAOL), a Vadodara-based company, will soon be launching a series of new products for its domestic and international consumers with an investment of Rs 30 crore.

Talking to Business Standard, Vikram Udeshi, managing director of JAOL, said, "As we are near completion of the ongoing expansions plan, we have chalked out our next plans that will be through inducting a wide range of products."

Elaborating on the current market scenario he said, "There is a spurt in the demand from both international markets as well as the domestic industries."

Better availability of crops and introduction of castor in India are other major reasons for the company to extend its activities, he added.

"We will be introducing three to four products in next seven months," said Udeshi.

"The products are ready and will be placed for a final approval from the members of the company," he informed.

However, he denied to divulge the type and name of the new products.

In last three years, the company has successfully introduced more than 40 new castor oil products.

"The company will invest Rs 15 crore from internal accrual and another Rs 15 crore from debt," said Udeshi.

He further added that the promoters of the company will also be roped in by way of equity funding for the product expansion plan.

"Meanwhile, the benefit of the expansion project of Vadodara and Palanpur units, which are on the verge of completion, will also help for the product expansion project," he said.

The Vadodara unit has a installed production capacity of 45,000 tonne per annum, which will be increased to 55,000 tones on completion of the project by the end of May 2006. The unit has a total production capacity of 25,000 tonne per annum for the domestic tariff area of castor oil derivatives for the paints, ink and adhesive industry.

Ihsedu Agrochem, a Palanpur-based subsidiary unit of JAOL, with a crushing capacity of 300 metric tonne (MT) per day, has been increased to 500 MT per day and will be raised to 600 MT per day by the end of June 2006.

The gross turnover from the castor oil and its derivatives along with the profit after tax, has been Rs 417 crore and Rs 6.47 crore respectively, for the year 2004-05. The company has a debt and equity ratio of 1: 0.3.

Recently, the company decided to issue a bonus share at a ratio of 1:1, subject to approval of shareholders at EGM.