The Hindu Business Line : Emami diversifying into jatropha cultivation

Corporate - Diversification
Industry & Economy - Non-conventional Energy
Agri-Biz & Commodities - Cultivation

Emami diversifying into jatropha cultivation

Our Bureau

The company is looking at acquiring foreign brands or entering into arrangements with foreign brands in the personal and healthcare sectors.

Kolkata , Aug. 26

FMCG company Emami Ltd is diversifying into the cultivation and extraction of the biofuel jatropha, according to its Chairman, Mr R.S. Agarwal.

He was talking to reporters after chairing the 22nd annual general meeting of the company. The West Bengal Government has already offered 300 acres of land to the company in Birbhum district.

Emami has also entered into a technical tie-up with IIT, Kharagpur. Mr Agarwal said his company was talking to the oil companies for another tie-up but nothing had been finalised."We would start a trial project on 50 acres. We feel there is a tremendous potential for this product. The company would be investing approximately Rs 50 crore in this project," Mr Agarwal said.

Meanwhile, the company is looking at acquiring foreign brands or entering into arrangements with foreign brands in the personal and healthcare sectors. The company has chosen Ernst & Young to scout for a partner.

"We are also looking at domestic brands. There are a few which are up for sale. Ernst & Young is constantly in discussion with these companies. We hope to acquire some brand by the end of this year," Mr Agarwal said.

The company is entering the Bangladesh market in a big way. It had already set up a wholly owned subsidiary, Emami Bangladesh. A production unit will be set up at a cost of Rs 10-12 crore.

For the year ended March 31, 2005, the company registered a turnover of Rs 218.85 crore and net profit of Rs 29.4 crore. In the current financial year, Mr Agarwal said, turnover is expected to grow by 13-15 per cent and net profit by 30-35 per cent.

The Emami group, which produces newsprint through the company Emami Paper Ltd, is making a fresh investment of Rs 350 crore to add new capacity of 300 tonnes per day at its Balasore (in Orissa) plant.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page