K S Oils, a leading integrated edible oil company in the fast moving consumer goods sector, today reported a growth of 59 per cent in its net profit to Rs 42.22 crore as against Rs 26.58 crore for the second quarter of the current financial year.
The company’s net sales rose 67 per cent for the quarter to Rs 733,60 crore compared with Rs 439.80 crore.
The company’s portfolio of products are: Double Sher and Kalash (mustard oil brands) KS Refined Oil and Crystal Clear (vegetable refined oil); and KS Gold and KS Gold Plus (vanaspati ghee).
The company has increased its presence from North and East regions to include 19 states across the country. It had earmarked Rs 12 crore for a national marketing campaign at the beginning of FY09.
“The growth in retail sales led by our new advertising campaign has helped the company register higher per unit profitability and increase the company’s overall profits,” said K S Oils Managing Director Sanjay Agarwal.
Branded sales account for 64 per cent of the company’s overall revenues and by-products and unbranded oil sales account for 20 and 16 per cent each, respectively.
The company’s growth plan in domestic and international operations are moving according to schedule, the company’s chairman said. “We are looking at consolidating our position in the mustard market by increasing our market share from 11 per cent to 20 per cent in the next two years,” said Chairman Ramesh Garg.
Its three greenfield projects at Kota (Rajasthan) and Ratlam (Madhya Pradesh) have started production, while the Guna (MP) plant is undergoing commissioning.
