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MUMBAI : Emami Agrotech Ltd, the edible oils business of Kolkata-based Emami group plans to spend Rs1,000-1,500 crore over the next three years, as the company plans to diversify its business from edible oils to broader suite of food products, senior executives of the company told Mint in an interaction.

 “We are focussed on achieving our business target of Rs.25,000 cr by 2025, as we continue to explore entering into newer categories with a total business investment of around Rs1000-1500 cr over the next 3 years to emerge as one of the leading food brands of the country," said Aditya V. Agarwal, director, Emami Group

Significant part of this investment will go towards marketing to build the brand on a national level, he added.

In 2019, the company announced its foray into the spices category with the launch of Emami Healthy & Tasty Mantra Masala, a varied range of pure and blended powder spices and tastemakers. This was followed by a foray into the processed food category with the launch of Emami Healthy & Tasty Smart Balance Nutri Soya Chunks in 2021. Its main business is a wide range of edible oils like Mustard, Sunflower, Soyabean, Palmolein and Rice Bran and other blended oils.

The company will invest heavily in taking the spices brand national, while the soya chunks products will also be expanded to more states in eastern India.

 “Our spices plant in Jaipur will be operational by next month and by January or February we will take the spices brand national. We expect these two categories to generate a topline of Rs200-250 crore in the next three years," said Manish Goenka, Director, Emami Group.

He added that the foray into the food segments will help the company improve its financials since the oils business is a low margin business.

The company, which expects to close FY22 with a revenue of around Rs20,000 crore, is aiming to scale up its revenues to Rs25,000 crore by 2025.

With an aim to achieve this target Emami Agrotech has also set up and commenced production of edible oils from its new plant at Kandla, Gujarat. The new plant is a step towards making the company a key national player in the edible oil and food segment. The Kandla refinery with a production capacity of 3200 tonnes per day, is the fourth production unit of the company, after Haldia, Krishnapatnam and Jaipur.

The commencement of the  Kandla plant, takes the total edible oil production capacity of Emami Agrotech Ltd to over 12,000 tonnes per day. Emami Agrotech will produce refined palm oil, refined soyabean oil and value added products like vanaspati & bakery fats from its Kandla Refinery.

 “This will help us to reach out to a wider consumer base across northern and western region.  With machineries procured from European suppliers, this plant has some of the most advanced automation in the Indian edible oil industry. It is the only edible oil plant in the entire Kandla region which has the direct pipeline access from the port offering significant logistical and cost benefits," said Goenka.

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