GEF India eyes top slot in AP's sunflower oil mkt
To launch mustard and rice bran oils in addition to setting up new plant in Kakinada Hyderabad: City-based...
To launch mustard and rice bran oils in addition to setting up new plant in Kakinada
Hyderabad: City-based Gemini Edibles & Fats India Private Limited (GEF India) which markets its sunflower oil products under Freedom brand is looking to emerge as market leader in this segment in Andhra Pradesh.A "We currently enjoy second place in sunflower oils sales in AP with 17 per cent share. With the kind of growth we are logging in, we are hopeful of emerging as the market leader in this segment in near future. Our energies are focused on achieving this goal," P Chandra Shekhara Reddy, Vice President (Sales and Marketing), GEF India, told The Hans India.
Founded in 2009 by Pradeep Chowdhry, a veteran of edible oils industry, GEF India entrenched itself as major player in edible oils market in a short span of time with major market share in AP and Odisha besides significant presence in some other states. The company makes and markets a range of edible oils including sunflower, soyabean, palmolein and palm kernel oil. Besides, it also produces value added fats for bakeries, bread and biscuit industry, ice cream segment and confectionary sector.
GEF India's total turnover stood at `1,358 crore during financial year 2011-12. The company expects it to reach `1,600 crore for the fiscal ended on March 31, 2013.A "Nearly 25 of our sales come from packaged sunflower oils, while branded palmolein products which are marketed under First Class brand also contribute 25 per cent. The value added fats add 10 per cent to the top line, while the remaining 40 per cent comes from bulk oil sales," Reddy explained.
He expects sunflower and palmolein products to drive the company's growth in coming years while fats to strengthen the bottom line. "Besides AP, we also have already reached second position in Odisha's sunflower oil market with 23 per cent share. We will also climb to top position there," he said.
On the new areas that company is exploring, he said GEF India would soon foray into rice bran and mustard oil segments. "We are currently studying the market conditions and working on the quality issues. We will launch mustard oils first followed by rice bran oils. However, we are yet to firm up launch plans," Reddy stated.
GEF has two plants � one in Krishnapatnam and the other in Kakinada � that have total installed capacity of 1,000 metric tonnes a day. "The plants are strategically located as we import unrefined edible oils and process them there. At present, our capacity utilization is beyond 90 per cent," he said. According to him, GEF India is firming up plans to set up new plant at Kakinada. "We are yet to finalise the details, but the new plant will have an installed capacity to produce 200 tonnes a day," Reddy said.
However, he did not give the investment details of the new plant as the company's board would decide on the investments.A Reddy further said that with sunflower oil sales registering over 20 per cent growth year-on-year, the company would ample opportunities to expand its reach.
"Consumption of groundnut oil which still accounts for 40 per cent is coming down with every passing year as people are shifting to sunflower oils. This trend will continue as ground nut oils have become very expensive," he said.