The Rs 1,500-crore (Rs 15 billion) Emami Group is targeting Rs 2,500 crore (Rs 25 billion) turnover by 2009, on the back of its expansion into new categories, product launches in the FMCG segment, as well as rapid expansion in its existing real estate, paper and bio-diesel businesses.
The group is investing Rs 250 crore (Rs 2.5 billion) to expand its edible oil business thisyear by foraying into palm oil, soya oil and rice bran oil production.
In its new FMCG products, the company will launch 18 new products in hair care, babycare and men's grooming segments.
Speaking to Business Standard, Aditya Agarwal, director, Emami, said, "We are investing Rs 250 crore on the plant in Haldia in West Bengal for edible oil. Production will start within a six-month."
Initially, the company will sell its edible oil in bulk to industries that are into production of chips and biscuits. Brands will be launched later on, depending on the initial success with the bulk-selling format.
Emami's investment into edible oil will ensure its production of 800 tonne of palm oil, 600 tonne of soya oil, and 200 tonne of rice bran oil a day.
At present, the company aims at achieving 10 per cent market share in the edible oil segment.
The total market for edible oil in the country is around 3,000 tonne a year and growing at a rate of 30
The group will also invest Rs 220 crore (Rs 2.2 billion) for expansion in the FMCG segment, which includes acquisitions in personal care and healthcare space, product portfolio enhancement through forays into new categories.
Emami would launch 18 new products in the hair care, babycare and men's grooming segments. It is planning to launch talcum powder, soaps, shampoos, lotions, creams and body oils for babies.
The company invests Rs 120 crore (Rs 1.2 billion) on its brand every year, out of which Rs 40 crore (Rs 400 million) goes on the new launches. Moreover, Emami -- which started the male grooming revolution in 2005 with its Fair & Handsome fairness cream -- will launch a complete range of men's products this year.
"We will introduce complete toiletries for men, including creams, after-shave lotions, soaps, deodorants and shampoos for men. We will start test-marketing in another four months," informed Agarwal.
Intentionally, Emami will stay away from introducing the same range for women, as there are already several established players in the market.
"We try to recognise the different physiological needs of men and plans to come out with a tailor-made product for the target group," said Agarwal.