Calcutta, Jan. 6: Edible oil maker Adani Wilmar Ltd will commission a new pulse production and packaging plant adjacent to its existing oil refining unit in Haldia in April.
Adani Wilmar — a 50:50 joint venture between the $7-billion Adani Group and Wilmar International Limited, Singapore — had bought 8.5 acres of land from the Haldia port authorities two years back.
“We will commission a new plant in Haldia in April. It will be one of the largest integrated pulse production unit in the country. We bought 8.5 acres from the port two years back. Investments will exceed Rs 50 crore, while the capacity will be 250 tonnes per day,” Angshu Mallick, chief operating officer, Adani Wilmar, told The Telegraph.
Adani Wilmar has invested more than Rs 250 crore in the last five years on the refinery, which has a capacity of 1,600 tonnes per day at present. The company plans to raise the capacity to 2,600 tonne per day by 2014.
“We are looking at two big greenfield projects and are working on the locations. We have options in Maharashtra and Bihar. These will be for refining, bakery shortenings, vanaspati. Adani Wilmar normally spends Rs 200-250 crore in capital expenditure. Capacity would be between 1,500 and 2,000 tonnes per day. We have 18 units across the country with a total capacity of 9,500 tonnes per day for oil and want it to grow to 12,000 tonnes per day in the next one-and-a-half years,” Mallick said.
Adani Wilmar registered an 18 per cent growth in 2012 calendar year and is expecting to grow 20 per cent in 2013.
According to Mallick, prices rose 10-15 per cent in 2012 in the edible oil industry over the previous year, while the estimated overall growth was around 4 per cent. Consumer oil packs grew 12 per cent.
“In 2013, crop production is expected to be 20 per cent higher and edible oil prices could be lower by 10 per cent. Consumer packs will grow at 15 per cent. The east is doing well with a shift witnessed towards consumer packs. Per capita consumption has grown too,” Mallick said.
The company has a 17 per cent market share in packed edible oil and plans to capture 20 per cent in two years.
Adani Wilmar is planning to enter the blended oil category in the next four months. At present, it is conducting a research for the category, whose market size is estimated to be 6,000 tonnes a month.
In a bid to become an FMCG firm, Adani Wilmar has launched pulses and besan under the Jubilee brand in north India. The company plans to consolidate its Fortune brand — which is now popular in the oil segment — to bring in commodities such as pulses, besan and rice under its fold.