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On the other hand, the company is also waiting for a notice from Sebi before it can make an open offer price of Rs 7,315 a share to Zandu Pharmaceuticals shareholders as it recently increased its stake in Zandu Pharmaceutical Works to 27.5 per cent from four per cent earlier.
Emami therefore has to buy an additional 20 per cent stake in Zandu Pharmaceutical, according to the regulatory provision and will need a Sebi approval for the same.
The company is also raising its borrowing limit to Rs 500 crore (Rs 5 billion) to look for other takeover targets.
Emami expects its sales to grow 20-25 per cent in FY09 and plans to invest Rs 150 crore (Rs 1.5 billion) during the year for brand building and product development. In 2007-08, the company's sales stood at Rs 585 crore (Rs 5.85 billion).
"The growth in sales will come from the power brands, brand extensions and the new launches," said Aditya Agarwal, director, Emami.
The company also plans to introduce edible oil brands by 2009. Currently it is selling edible oil in bulk to industries. Emami earlier invested Rs 250 crore in its Haldia plant in West Bengal to foray into the edible oils business this year. It would produce palm oil, soya oil and rice bran oil.
According to the plans, 300 tonnes of bio-diesel and 1,000 tonnes of palm oil will be produced per day.
By December, the company will start production of soya and rice bran oil at the plant. Investment into edible oil will ensure production of 800 tonne of palm oil, 600 tonne of soya oil, and 200 tonne of rice bran oil per day.
