New Delhi: Kolkata-based cosmetics group Emami Ltd is drawing up a plan to venture into the retail segment of edible oils by March next year and is aiming to be a top player in the segment in two-five years, a director of the company said.
The company, which has set up a Rs250 crore plant at Haldia in West Bengal, expects sales from the edible oil business to be worth around Rs1,500 crore to start with.
“If everything works out well ... then we will be in the retail business of edible oils by March next year,” Emami director Aditya Agarwal said.
Agarwal said the company’s experience in marketing fast moving consumer goods (FMCG) will help it in the new business.
“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 500,000 tonnes a year, to industries 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 Uttar Pradesh, Bihar, Maharashtra, Orissa, Jharkhand and the north-eastern states, he added.
Agarwal said the company was bullish on the edible oil business despite the low margins in the sector as there was a huge demand.
India’s consumption of edible oils is about 12.5 million tonnes annually while the company’s production capacity is just 500,000 tonnes, he said. “The opportunity is enormous.”
In addition to edible oils, Emami is also exploring the biodiesel segment. “We have a biodiesel 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,” Agarwal added.