Emami Agrotech plans Rs 700-cr cap-ex over next 12 months

Our Bureau Kolkata | Updated on August 20, 2019 Published on August 20, 2019

Aditya Agarwal, Director, Emami Group, and Ananya Chatterjee, noted Bengali actor and National Award winner, at the launch of MANTRA spices by Emami Healthy and Tasty.

Rs 500 cr to go into setting up greenfield plant in Kandla, Rs 200 cr to go towards brownfield expansion in Haldia

The ₹12,000-crore Emami Agrotech, part of the diversified Emami Group, is investing ₹700 crore as cap-ex over the next 12 months.

The cap-ex will go towards a ₹500-crore greenfield plant at Kandla in Gujarat, which is expected to be operational in another 12-odd months. The remaining ₹200 crore will go towards brownfield expansion at Haldia in West Bengal.

While the Gujarat unit will have a production capacity of 2,500 tonnes per day; the Haldia unit’s revised capacity will stand at 5,500 tonnes per day. (Around 2,000 tonnes per day will be added by December.)

The company has another refinery at Krishnapatnam in Andhra Pradesh, with a total capacity of 2,500 tonnes per day.

According to Aditya Agarwal, Director, Emami Group, around ₹250 crore was recently spent (three months back) to nearly double capacities at the Krishnapatnam unit.

“Our total refinery capacity is expected to go up to 10,000 tonnes per day post the cap-ex,” he told presspersons here on Tuesday. This apart, the company has a seed crushing unit at Jaipur, Rajasthan.

Emami Agrotech reported a ₹12,000-crore turnover in FY19, playing across verticals such as branded edible oils (₹6,000 crore apprx), bio-diesel (₹500 crore), speciality fats (₹250 crore), while the remaining (₹5,250 crore) is from tanker oil and institutional sales.

Edible oils are sold under the ‘Emami Healthy & Tasty’ and ‘Emami Best Choice’ brands.

“We expect a ₹15,000-crore turnover in FY20, banking primarily on edible oil sales. With all expansion plans materialising, we are targeting a ₹25,000-crore turnover over the next three years or so,” Agarwal said.

Branded masala and spices

Emami Agrotech, on Tuesday, also entered the branded spices, masala and taste-maker market under the ‘Emami Helathy & Tasty Mantra’ brand.

Launches include larger packs and low-unit price offerings of ₹5 across categories such as turmeric powder, chilly powders, meat masala and so on. Launched initially in West Bengal, the offerings will be launched pan-India from the next fiscal (FY21) onwards.

Branded spices is a ₹16,000-crore market in India, with Everest and MDH being among the major players. It is growing at a rate of 15 per cent, annually.

“We are targeting a ₹15-crore turnover from the branded spices, masala and taste-maker segment by the end of this fiscal here in West Bengal,” Agarwal said.

Spices, masala and taste-makers are made at the Haldia unit, where ₹10 crore was invested.

“Over the next few years nearly ₹50-60 crore will go as cap-ex in the spices units, that includes setting up a new facility somewhere in Central India and expansion of existing ones,” he added.

Published on August 20, 2019
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