New Delhi: Kolkata-based FMCG major Emami is drawing up a mega plan to foray into the retail segment of edible oils by March 2009 as it aims to be a top player within two to five years.
The company, which has set up a Rs250 crore plant at Haldia in West Begal, expects sales from the edible oil business to be around Rs1,500 crore to start with.
“If everything works out well and things go as planned, then we will be in the retail business of edible oils by March next year,” Emami Director Aditya Agarwal told PTI.
He said Emami would leverage on its FMCG marketing and strength to push its edible oils.
“Currently, we are still in the process of deciding on the brand of edible oil for the retail market but as we already have a huge sales network for our FMCG products, we should be able to get advantage of the Emami name,” Agarwal said.
Emami had started bulk supplies of edible oils from its Haldia plant, which has a capacity of five lakh tonnes a year, to industries mainly to biscuit manufacturers a couple of months back.
“We have plans to come up with palm oil, soya oil and rice bran oil. By January next year the edible oil business will be in full steam. Our aim is to be amongst the top players in the next two to five years,” Agarwal said.
The company is expanding its supply network to eastern UP, Bihar, Maharashtra, Orissa, Jharkhand and the North Eastern states, he added.
Agarwal said the company was bullish on the edibles oil business despite the low margins as there was a huge demand.
“India’s consumption of edible oils is about 125 lakh tonne annually and our production capacity is just five lakh tonnes. The opportunity is enormous,” he said.
Besides the edible oils, Emami is also testing waters in the biodiesel segment. “We have a biodisel unit at our Haldia plant. It has a capacity to produce 300 tonnes per day. Gradually, we intend to grow in the segment as well,” he added.