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Mumbai , Sept. 11

ADANI Wilmar Ltd is eyeing 40 per cent growth in its turnover for the current fiscal at around Rs 1,750 crore, primarily from expanding its branded edible oils business.

Having touched 100 per cent capacity utilisation with its existing edible oil refining capacity, Adani Wilmar is planning to set up another plant with a daily capacity of 1,200 tonnes at a cost of Rs 95 crore. This facility will also include a 4 MW captive power plant.

The second facility is primarily aimed at the export market having established itself in the domestic edible oil market.

The joint venture company had, earlier, invested Rs 85 crore in a 600 tonnes per day capacity plant at Mundhra, 10 km away from the Mundhra port. The company has also invested in a bottle blowing facility, which has also helped in bringing down costs.

Adani Wilmar, a joint venture between the Adani Group and Wilmar of Singapore, is euphoric about the growth in branded edible oils. According to Mr Angshu Mallick, General Manager, Sales and Marketing, Adani Wilmar Ltd, the company's edible oil business spans across many categories of edible oils - soyabean oil, sunflower oil, cottonseed oil, groundnut oil, mustard oil and a blend of palm and soyabean oil - sold under the brand name Fortune.

Quoting AC Nielsen ORG Marg data for July 2003, Mr Mallick says that Fortune has carved out a 17 per cent share to emerge as a leader in the refined edible oils market and a 48 per cent share in soyabean oil alone. Sundrop with a 12 per cent share is the number two brand in edible oils market.

"The edible oil industry has grown by four per cent during the 2002/2003 fiscal but we have grown by 140 per cent,'' Mr Mallick says. An upturn in the growth of sales is partly on account of the technology adopted by the company at its refining facility, facilitating a reduction in costs.

"We have a large plant with imported technology from Belgium,'' he said. According to him, technical expertise is available to the company courtesy a 20 per cent equity holding by American company Archer Daniels Midland (ADM) in Wilmar.

Within its portfolio of edible oils, Adani Wilmar has been able to grow the soyabean oil the most. The company's focus, therefore, will rest on soyabean oil, Mr Mallick said.

Branded edible oil accounts for 25 per cent of the 112-lakh tonnes edible oil market.

Proximity to the port has helped Adani Wilmar in lowering logistics expenditure for the company imports crude palm oil, sunflower oil and soyabean oil. "All our cost reduction efforts have translated in benefits to the ultimate consumer,'' Mr Mallick said.

In terms of exports, Adani Wilmar is looking at countries such as Afghanistan, Iraq as well as Pakistan.

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