Emami Agrotech, an Emami Group company in the business of branded edible oils, spices and soya chunks, is planning to invest around Rs 1,000-1,500 crore over the next three years to emerge as one of the leading food companies. In order to become a complete food company, it is exploring various options of foraying into higher margin-based categories.
Following an aggressive business strategy, the company aims to increase its turnover to Rs 25,000 crore by 2025 from over Rs 12,500 crore at present. Its Rs 600 crore greenfield plant in Gujarat’s Kandla has commenced production of edible oil.
“Emami Agrotech will continue to explore entering into newer categories with a total business investment of around Rs 1,000-1,500 crore over the next three years to emerge as one of the leading food companies of the country. We are interested in foraying into higher margin-based products. We are exploring various options,” Emami Group director Aditya V. Agarwal told reporters on Thursday.
The company, which created a strong presence in the edible oil industry with its brands “Healthy & Tasty” and “Himani Best Choice”, ventured into the spice market by launching a diverse range of spices and tastemakers under the brand name “Emami Healthy and Tasty Mantra” in 2019. Last year, it forayed into the soya chunks category.
The commencement of production at the Kandla plant takes the total edible oil production capacity of the company to over 12,000 tonnes per day (TPD) from its earlier capacity of 9000 TPD. The Kandla refinery is the fourth production unit of the company in India, after Haldia (West Bengal), Krishnapatnam (Andhra Pradesh) and Jaipur (Rajasthan).
Manish Goenka, director, Emami Group, said the greenfield plant in Kandla will help the company to reach out to a wider consumer base across Northern and Western regions. “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-benefit,” Goenka said, adding the plant will manufacture products under edible oil brands Emami Healthy & Tasty and Himani Best Choice, Vanaspati brand Rasoi and speciality fat brand Bake Magic.
The company is also one of the largest manufacturers of biodiesel (Palm Methyl Ester) in Eastern India and a key exporter of biodiesel to Europe and other South East Asian Countries.