Narmada Gelatines exports up 16%

Jabalpur-based Narmada Gelatines Ltd registered an export growth of 16 per cent in gelatine products, in 2003-04.

Formerly known as Shaw Wallace Gelatines Ltd, Narmada Gelatines is the oldest gelatine manufacturing company and the first in central India. Established in 1961, the firm was taken over by Shaw Wallace in 1971.

The company has also developed a substance called protein collide, used in manufacturing ball powder, an ingredient of bullets. The firm is a supplier to the ordnance factory of Itarsi in the Hoshangabad district. The company has set an export target growth of 15 per cent in 2004-05.

On the new product, Director Ashok Kapoor said, "Earlier, the ordnance factory had to import protein collide. It was costlier, being priced at Rs 340 per kg about six years ago. Now we are supplying the same product at Rs 180 per kg."

The company produces 40""60 tonnes of protein collide annually. The company's turnover was Rs 55 crore last year, expected to touch Rs 60 crore in 2004-05, Kapoor said.

In a recent annual general meeting in Jabalpur, the company has announced a 9 per cent dividend pro rata from the date of allotment to preference shareholders. The company has posted a net profit of Rs 41.61 lakh in 2003-04, against a loss of Rs 94,000 in 2002-03.

"The firm's search for export markets has been productive. Exports have gone up by 16 per cent. As against exports of Rs 8.61 crore in 2002-03, exports in 2003-04 stood at Rs 10 crore," said Deepak Chaudhuri, joint president of Shaw Wallace.

Most of the company's exports are in the pharmaceutical sector, where gelatin is used for manufacturing capsules. Export destinations are Indonesia, Sri Lanka, Ireland, the US, among others.

Gelatine, extracted from animal bones, has applications in food processing, capsule manufacturing, and photographic units.

"Despite increased competition, sales of Narmada Gelatines have registered a growth of 4 per cent in 2003-04. Capacity utilisation increased to 98 per cent, as against the industry average of 76 per cent," Chaudhuri said.

The company has asked the National Productivity Council (NPC) to suggest ways of improving the effluent treatment capacity of its plant. "To implement recommendations of the state pollution control board and the National Productivity Council, the proposed capital expenditure is Rs 90 lakh, and of this the firm has spent Rs 26 lakh," Chaudhuri said.

Indian gelatine companies account for 5 per cent of the global production of 272,300 tonnes a year.

Cattle bones are the main source of gelatine. The cost of bones in the US is 1.6 times that in India. The other raw materials""hydrochloric acid and limestone""are available at lower prices in India.

Globally, more than 80 per cent of the global production of gelatin is done in Europe, the US, and Japan. Of the 14,000 tonnes per annum produced in India, almost 36 per cent is exported.

Narmada Gelatines Ltd produces 2,000 tonnes a year.