Emami to diversify into milk and breakfast cereals food business

The FMCG major, which launched its edible oil brand last month, is looking at a slew of food & beverage products


Emami Group, the Rs 2,500 crore fast moving consumer goods major, is cutting its teeth on food business. Last month, the Kolkata-based firm made its debut by launching the ‘Healthy and Tasty’ brand of edible oil.


But that’s only the beginning. While Emami recognises that its core business will remain personal care, it plans to foray into newer food categories like breakfast cereals and milk-based beverages.



Emami Group director Aditya Agarwal, says “We want to be a complete foods and beverages company, although we will take one step at a time.” The company will foray into the milk-based beverages market with the launch of chocolate granules, a milk-based beverage mix, under its brand ‘Chawanprash’. Chawanprash is a Rs 25 crore brand now.



The idea is to increase the consumer base by offering differentiated products in the Rs 1500 crore milk-based beverages market, which is reportedly growing at 15 per cent and is dominated by Complan, Horlicks and Bournvita.



“We are also test-marketing ‘Chocoprash’, a chocolate paste that consumers can use as a spread on rotis and breads,” Agarwal says.



According to market data, the penetration of Emami’s Chyawanprash in Indian households is just 2 per cent, and Emami feels that it offers a lot of potential to fill the market gaps by producing more variants. In the past few years, the company has also introduced ‘Amritprash’, a summer variant of Chawanprash which is traditionally consumed more during winters.



The Indian food market is worth approximately Rs 2,50,000 crore and value-added food products another Rs 80,000 crore ($22.2 billion). It is expected to double in another 10 years.



On edible oils, Emami is trying to tap the unorganised market through low unit packs (LUPs) besides creating space in the Rs 10,000-crore branded edible oil market. Demand for Mediterranean food such as pasta and pizza has risen in the country over the years leading to an increased demand for edible oil as a cooking medium.Though the market size is huge in India, the potential for branded products is tremendous as most of the 14 million tonnes consumption is sold in unpacked loose form and in small quantities as well.




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Emami to foray into packaged cooking oil market

Emami Group today cut its teeth on food business by introducing packaged cooking oil.




Bollywood actor Preity Zinta launched six variants of the ‘Healthy and Tasty’ brand oil in Calcutta.



Zinta and Indian cricket captain M.S. Dhoni will endorse the edible oil, which has already hit the stores.



Manish Goenka, director of Emami Biotech, said the television commercial, shot by adman Prahlad Kakkar, would go on air in the next fortnight.



The group hopes to clock Rs 300 crore of business from the branded oil business in the first year itself and then raise it to Rs 1,500 crore in three years. Emami is producing palm and soya oil at its own refinery in Haldia. The rest of the variants are being outsourced now. However, Aditya Agarwal, director of Emami, said the group was setting up a refinery at Krishnapatnam in Andhra Pradesh, where palm and sunflower oil would be processed.



It also wants to build another refinery on the west coast, preferably at Pipavav in Gujarat, for palm and ground nut oil to tap the entire market.



Agarwal said the group aimed to invest Rs 1,000 crore in next 3-5 years in farming, processing, refining and brand building in edible oil.



It has begun cultivation in 4,000 hectre plot in Ethiopia for growing corn, maize, soybean, jatropha, sunflower among others.

Source :PTI

Emami to enter Indian edible oil market

Emami group which has personal body care products like lotions and cream ,deodarant etc has plans to set up bio fuel plant jatropha in african countries like Ethiopia .Also intends to put up edible oil refineries in state of Gujarat .Emami group of companies at present are growing sunflower ,castor , pulses and herbs in various African compnaies .

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