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Mawana Sugars to foray into edible oil segment PTI, Apr 25, 2011, 12.

12am IST MUMBAI: Mawana Sugars is planning to foray into branded edible oil segment and is targeting to capture 3-5% market share within a year, a top company executive has said. "We are planning to launch branded edible oil within two months in the edible health oil category. The refined oil will be corn-based as maize is considered the healthiest among all," company vice-president (Retail) Surjya Meher said. Initially, the company will launch the branded edible oil in the north, where it has a strong foothold, and west, he said adding that the product will be available mainly in tier I and II cities. "For this venture we are making an initial investment of 2 crore and are targeting to capture 3-5% market share in the refined health oil segment in one year," he said. Amul sets its eyes on edible oil business Prashant Rupera, TNN, Jul 19, 2010, 10.32pm IST VADODARA/ANAND: After bringing milk, butter and lately even bread on your morning table, Amul is now trying its hands in edible oil business. The Kheda District Cooperative Milk Producers Union Limited ( KDCMPUL), known as Amul Dairy, is in talks with the Anand Regional Co-operative Oilseeds Growers' Union Limited (ARCOGUL) to bring the ailing co-operative in its fold. Nearly four decades old, ARCOGUL, which is popular for its edible oil brands Anand and Kiran across Gujarat is the only oilseeds growers' co-operative, which is still surviving in the country even as all other oilseeds growers' unions have witnessed a slow death. While ARCOGUL's general body has resolved that the co-operative be merged with a bigger co-operative like Amul, Amul Dairy itself has appointed a chief executive officer (CEO) to handle edible oil business. "Since a month now, we have started procuring edible oil from ARCOGUL, which is being sold through our existing network of around 1,000 village level co-operative milk societies. While this will help us learn the nitty-gritty of oil business, which is very different from milk, we have also appointed a CEO to get more focused approach. If we get a grip of the edible oil market, we will be explore it. At the same time, it will help ARCOGUL's revival," Amul Dairy's managing director Rahul Kumar told TOI on Monday. Hiren Bhatt, who had earlier enjoyed 11 years stint as general manager (sales and marketing) of a mineral water brand, has joined Amul Dairy as CEO of edible oil business. Started as a small co-operative in Chikodra village on the outskirts of milk city Anand in 1969 to help cottonseed growers of the region, ARCOGUL with 130 societies having membership of 25,000 farmers spread in 739 villages has turnover base is of around Rs 120 crore. The ailing co-operative, however, has a debt of around Rs 28 crore, including Rs 13 crore (excluding interest), which it has to pay to the National Dairy Development Board (NDDB).

"Thanks to detrimental policies adopted by various agencies, including the government, most oilseeds unions have closed down. We are the only co-operative which are still in the business. The proposed merger for which our board has agreed upon can both settle our dues and help us survive in this difficult times," ARCOGUL's chairman Ramesh Patel, who in the past has also served as chairman of Amul Dairy for 12 years, told TOI. "We will, however, require approvals from the state government to merge our co-operative with Amul." The regional oilseeds co-operative that covers seven districts of Anand, Kheda, Panchmahal, Dahod, Vadodara, Narmada and Bharuch has a refinery with 100 tonnes per day processing capacity at Chikodra. Jaypee enters agri biz, plans to process, market edible oil Sanjeev Choudhary, ET Bureau, Jul 22, 2009, 01.36am IST NEW DELHI: Jaiprakash Associates, best known for its presence in the construction and hydroelectric power sectors, plans to process and market edible oil under its own brand as part of a surprise foray into the agribusiness segment. The Delhi-based group plans to invest Rs 80 crore initially in the venture that will process soya and mustard oil and produce oil cakes, all of which will be sold under its own brands. The company, which is targeting annual revenue of Rs 400 crore from the business by FY12, did not explain the synergies between the edible oils business and its mainstay infrastructure businesses, merely disclosing that the oil processing plant will be set up in Rewa in Madhya Pradesh where it has a strong presence in the power and cement sectors. "The plan is to procure oil seed from the farms in 100-km radius of Rewa. We want to turn Rewa into the most potent force in soya farming and ensure that farmers get the best price," said Manoj Gaur, executive chairman of Jaiprakash Associates. The growth prospects of the edible oil business in India have attracted interest from private equity and hedge funds. Baring Private Equity Partners Asia had picked up an 8.86% stake in KS Oils for Rs 90 crore in 2007. Citigroup Venture Capital International also owns a stake in KS Oils. The group with interests in cement, construction, real estate, hotel and power sectors has its biggest cement plant in Rewa in Madhya Pradesh and has also two more thermal power plants under construction in the state. The oil processing unit, which will have a capacity of 1 lakh tonnes per annum each for mustard and soya oil, will commence production in November 2010. The group's foray into edible oil will pit it against the likes of groups such as KS Oils, Adani Wilmar, Ruchi Soya, ITC, NDDB, Cargill and the Bhaskar Group. Its proposed brands whose names Mr Gaur declined to reveal will compete with NDDB's Dhara, Adani's Fortune, Agro Tech's Sundrop, Cargill's NatureFresh and Bungee's Dalda. Madhya Pradesh, Rajasthan and Maharashtra are the major producers of edible oil, with MP accounting for almost half of total domestic soya produce. India consumes around 13 million tonnes of edible oil per annum, which includes 5.5 million tonnes of imported oil.

The rapid increase in demand for edible oil has prompted several players to expand processing capacity, leading to difficulties in seed procurement during the off-season, which extends for up to six months a year for both soya and mustard. The government allows import of edible oil, but not of oil seed. So, during the off season, oil processing companies have to simultaneously contend with high seed prices and cheap oil imports. For local edible oil companies, there is an attractive export market for oil cakes a by-product of oil processing, which is used as cattle feed. Ramanasree launches sunflower oil; mulls IPO Our Bureau Hyderabad June 4 South-based logistics player Ramanasree Group on Wednesday entered the FMCG sector by launching a branded refined sunflower oil in Andhra Pradesh. The company aims at garnering a market share of 15 per cent this fiscal in the State. Ramanasree Group will introduce the brand in Varshi, Karnataka, in two months and subsequently in Tamil Nadu and Kerala. An unlisted company, Ramanasree intends to increase its portfolio of offerings in the FMCG sector by launching products such as branded coconut oil and atta later this fiscal. To part-finance our expansion plans in the FMCG sector, we plan to tap the capital market with an IPO some time this financial year, Mr O.V. Ramana, Chairman of the group, told presspersons here. The company, which has been engaged in delivering logistics, supply chain management and warehousing solutions to FMCG companies, will for the time being outsource its supplies of Varshi oil from a local manufacturer with a string of stipulations regarding the quality and process.Later as we establish our brand in the market, we will plan setting up our own manufacturing facility, he said. The company is promoting the brand as one that is enriched with vitamins A, D and E, apart from dimethyl polysiloxane in the advanced refining process to ensure that minimum oil is absorbed. We will be marketing from the perspective of health and affordability. Our products are priced lower than the other branded products in this category, Mr Ramana added. Cargill scouts for more buyouts in edible oils By Meghna Maiti Mar 29 2011 , Mumbai Tags: Cargill, Edible oils, Gemini, Nature Fresh, Rath, Sweekar, News The $107.9-billion Cargill of the US that markets Nature Fresh and Gemini edible oil brands in India is looking at more acquisitions in edible oils and animal feed as it looks to further boost its portfolio of agricultural commodities. The company had last week announced the acquisition of sunflower oil brand Sweekar from Marico. The privately held company is keen to grow its presence in the worlds second-most populous country. Siraj A Chaudhry, country head, Cargill India, said on the sidelines of Food Forum India, As a strategy we are banking on both inorganic and organic growth. We have global capabilities that can be leveraged very well for India. We want to focus mainly on the food and animal nutrition businesses. If something fits into our portfolio,

we will definitely welcome it. The international producer and marketer of food and agricultural products as well as financial and industrial products and services has paid around Rs 60 crore for the brand rights of Sweekar, said Chaudhry. The company is now aiming to launch more affordable brands. Its recent launches include NatureFresh Shakti in the Orissa market. This is the lowest priced product in its range. We will roll out this product nationally this year, added Chaudhry. Cargill has carved out an aggressive growth strategy for India. It bought out its initial joint venture partner Parakh Foods in 2005, following which it acquired the Rath edible oil brand of Agro Tech foods, a subsidiary of ConAgra Foods, in 2010. In 2006 Cargill entered into a JV to set up a greenfield sugar refinery in south India. The company also owns a shrimp feed manufacturing business in Rajahmundry in Andhra Pradesh. Cargill started its India operations in 1987. Its businesses include handling and processing of a wide range of products, including refined oil, grain and oilseeds, sugar, cotton and animal feed. The market size for edible oils in the country is 15 million tonnes, growing at around five per cent per annum, said Chaudhry. Gokul Refoils and Solvent (GRSL), an oilseed processing major, is set to expand its activities in the country and overseas and is raising up to Rs 160 crore through an initial public offer (IPO) in the next few weeks. The company, which has already filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), is also going to start its new solvent plant at Gandhidham in Kutch district of Gujarat by the end of December, its CEO, Mr R N Lohia said. Post-IPO, the promoters stake in the company would come down to 72 per cent. In November, the company successfully completed pre-IPO placement of 2,66,500 shares with Citigroups foreign investor, Granite Hill Capital Ventures LLC, USA, at a price of Rs 185 per share. Proceeds of the funds raised through the IPO will be used in expanding capacity and other business plans. These include pumping Rs 51.01 crore into the soyabean processing plant at Gandhidham with a capacity of 1,500 tonnes per day (tpd) which is scheduled to start production by the end of December. Other plans include expansion of the existing oil refinery at Surat from 100 tpd to 400 tpd (Rs 12 crore), funding part of long-term working capital (Rs 60 crore), investment in the wholly-owned subsidiary at Singapore (Rs 25 crore), increasing warehousing capacities and continuous capex for existing units (Rs 10 crore) and brand-building activities (Rs 15 crore). The company also plans to avail itself of a total term loan of Rs 38.25 crore from a consortium of banks, Mr Lohia said.

The companys business includes seed processing, solvent extraction and refining of various kinds of edible oils. In 2006-07, GRSL also entered the non-edible oil segment with castor oil and its derivatives through its 15-per cent partnership firm, Gokul Overseas, located in the Kandla Special Economic Zone (KASEZ). It is a 100 per cent export-oriented refinery located in the port-based town of Gandhidham, reports The Hindu Business Line. Sheetal Refineries is a South-India based edible oil refiner. Company has filed draft red herring prospectus with SEBI for its initial public offering issue of upto Rs 60 crore. Sheetal Refineries is engaged in trading and refining of rice bran oil, sunflower oil, soya bean oil, cottonseed oil, palm oil and groundnut oil. Major markets for company are Andhra Pradesh and Tamil Nadu. Company would use IPO proceeds for setting up additional refining unit with the refining capacity of 75000 TPA at Nandigama. Its subsidiary, M/s. Sheetal Siddhi Veg Oil Pvt Ltd would part of funds for increasing the refining capacity by 30,000 TPA at Thimmapur. At present, company has installed capacity of refining edible oil of 30000 TPA and is proposing to set up an additional unit for enhancing its installed capacity by 75000 TPA for catering increasing demand of edible oils. For six months ended on September 2010, Sheetal Refineries has reported net profit of Rs 3.12 crore on total income of Rs 179.84 crore.