Solvex eyes China, Thailand mkts

Sangrur-based firm to set up oil extraction units in the 2 countries

Sangrur-based A.P.Solvex Ltd, the only manufacturer of refined rice bran oil in India, is set to put up its oil extraction units in Thailand and China. The company has decided to go in for joint ventures with local companies of the two countries.

Talking to Business Standard, AR Sharma, chairman and managing director of A.P.Solvex Ltd, said he would invest about Rs 20 crore in the proposed projects and the balance would be financed by the joint venture partners. The negotiations with the potential partners were in an advance stage, he added.

Sharma put up his plant at Dhuri in Sangrur district, the largest paddy producing district in Asia, in 1993. The refinery was operational in 1995. Till 2000 he supplied rice bran oil only to banaspati oil manufacturers. He started direct marketing of the product in 2001 and since then there has been no looking back.

Rice bran is the outer brown layer of paddy that is normally used in India as fodder for livestock.

A.P.Solvex processes 1.4 lakh tonnes of paddy from Punjab every year. Sharma said the oil is referred to as the "heart oil" in Japan owing to its scientifically proven cholestrol balancing qualities. "Japan produces only 3 per cent of the global paddy production, while India produces 20 per cent of the same. However, we are lagging behind in value additions to paddy processing."

He also said various nutraceuticals such as lecithin (brain nutrient) and oryznol (cholestrol balancing agent and substitute of Satin a pharma drug used for balancing cholestrol) can be produced from the residues generated during the refining porcess of rice bran. The company has decided to foray into manufacturing the medicinal by-products of rice bran in the next two years. The machinery for that would be imported from Japan.

The company produces about 15,000 tonnes of rice bran oil annually, sold only in the domestic market. According to Sharma, there is a tremendous scope for exports to the developed markets.

Sharma said the rice bran oil that is sold in India for Rs 50 a litre is sold in the US for Rs 600-700 per litre.

The company has put up an International Standard Food and Safety compliant unit in Dhuri for exports to Europe and USA. The company proposes to export 500 tonnes of oil by the year end.

Sharma also said in the western countries this oil is used as salad dressing. He added that the nutritional value of the cooking oil depletes when heated at high temperature. The company sells its product in the retail market in the brand name of Raisila in India. It also supplies in bulk to Saffola.

"We are on sound footings in north India's market and want to grow steady and consistently. We recently launched our products in metro towns."

The company recorded a turnover of Rs 185 crore in 2004-05 and is giving a direct employment to 400 persons.