Emami Biotech Ltd is set to acquire vegetable oil brand ‘Rasoi’ from Rasoi Ltd for ₹13 crore.
The ₹8,000-crore Emami group’s edible oil and bakery product arm said in a statement that it signed the acquisition agreement on Thursday. Aditya Agarwal, a Director of Emami, told BusinessLine that this acquisition would mark Emami Biotech’s entry into the vegetable oil market. “We plan to reposition the old vegetable oil brand.”
Rasoi Ltd, which is exiting the vegetable oil or vanaspati business, said it would set up a baby-care product unit at its existing vanaspati manufacturing unit in West Bengal.
Once a popular brand in the east and the northeast, Rasoi’s current turnover of around ₹150 crore comes primarily fromWest Bengal. Emami has decided to reposition it at the national level in the next three years. “We are aiming at a six-fold jump in turnover in the next three to four years,” Agarwal said.
Emami also plans to add a new vegetable oil producing facility at its Haldia edible oil plant at a cost of around ₹25 crore. “This could be in place some time in the next financial year. Till then, we would outsource the product to maintain the brand’s continuity,” said Manish Goenka, another director of the group.
Meanwhile, Emami Biotech has decided to set up its third 2,000 tonne per day edible oil refinery in Gujarat at a cost of around ₹300 crore to cater to the northern and western markets.