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Emami Agrotech (EAL), an Emami Group company, which is currently in the business of branded edible oil, spices and soya chunks, is looking to diversify and foray into higher margin-based categories in the food business.
The company plans to invest around ₹1,000-1,500 crore in branding and marketing over the next three years to emerge as one of the leading food companies.
According to Aditya V Agarwal, Director, Emami Group, EAL is likely to post over 50 per cent growth in turnover at around ₹20,000 crore in FY22, as against ₹13,000 crore in FY21. The growth would be primarily on the back of a sharp surge in edible oil prices even while volume sales have remained muted due to a decline in sales and demand from the HoReCa (Hotels/Restaurant/Café) business.
Sales target
The company is hopeful of growing its sales to ₹25,000 crore in the next three years. In FY21, it had registered volume sales of close to 1.5-1.6 million tonnes and this is expected to increase to 2 mt this fiscal following the commencement of production at the Kandla refinery.
The commencement of the Kandla plant would take the total edible oil production capacity of Emami Agrotech to over 12,000 tonnes per day from its earlier 9,000 tonnes a day.
“The ₹600-crore greenfield project at Kandla will help us reach out to a wider consumer base across northern and western region,” Manish Goenka, director, Emami Group said.
Diversification on the cards
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 in to the soya chunks category.
Also read: Emami buys majority stake in Brillare Sciences
“We entered the spices market around two years back. It is currently available only in West Bengal but we plan to scale it up nationally. We are also looking to add more products moving forward but nothing has been firmed up as yet,” Agarwal said.
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