K S Oils, one of India?s leading integrated edible oil FMCG company announced today that it will drive its global expansion through K S Natural Resources (KSNR) its fully-owned subsidiary in Singapore as part of the company?s strategy to become a fully integrated edible oil company having capabilities across the entire value chain. KSNR has been awarded the International Headquarters (IHQ) status by the Singapore Economic Development Board (EDB) and is the first Indian company from the agri-sector to have been conferred this status.

K S Oils? international investments and acquisitions will be led through KSNR, and Singapore will be the centre of its global operations. The company aims to generate annual revenue of USD 1 billion by the year 2014 through KSNR. The current foray into creating agri-assets like palm plantations in Indonesia and Malaysia and future investments in green field and brown field agri-assets would be channeled through Singapore. KSNR aims to become a leading agri-commodity player with interests in palm plantations, oil mills, agri-commodity trading, export and import of edible oils and other value added areas like logistics, port facilities and ocean carriers.

Significantly this international expansion is part of K S Oil?s ongoing strategy to becoming a fully-integrated edible oil company having presence across the entire value chain ? from edible oils to owning plantations.

Mr. Sanjay Agarwal, Managing Director, K S Oils said, ?We want to replicate our success in India first in Asia and then across the globe. With agri-assets and a strong backend supply chain both in India and abroad, we aim to become a leader in one of the key global edible oil market ? India. Over the past 12 months we have acquired over 20,000 hectares of palm plantation land in Indonesia and Malaysia and set up our international base in Singapore ? both of which are a proof of our commitment and passion for becoming a true MNC agri-commodity player from Asia. I trust Singapore will be our able partner in this journey. ?

K S Oils chose Singapore as its second home because of its strategic location, excellent connectivity, talented pool of professionals and world class reputation as a trading, financial and shipping hub. KSNR will drive its strategic growth internationally through acquisitions, diversification and integration of agri-assets. Leveraging on Singapore?s global resource pool, KSNR aims to create a key team of highly talented professionals to ensure international levels of governance, transparency, growth and risk management.

Mr. Quek Swee Kuan, Assistant Managing Director, EDB, who was present on the occasion said, ?We are delighted that K S Oils has chosen Singapore as its home outside of India. Singapore provides an excellent base for Asian companies like K S Oils to drive their expansion plans and seek out international growth opportunities.”

“With the set up of its International Headquarters in Singapore, K S Oils joins the cluster of companies in the agri-commodities industry who hub their strategic business functions in Singapore. We are today a leading trading hub in Asia for commodities and with close proximity to the region’s largest producers and consumers of several commodities, companies in the commodities/natural resources business are finding it attractive to choose Singapore as the epicentre of their operations.”

K S Oils has also unveiled KSNR?s year-old R&D tie-up with the National University of Singapore (NUS). Being an agri-player, K S Oils is committed towards sustainable and green development and hence has geared its research efforts towards the same. Environmental safeguard, carbon footprint reduction, ecological balance, use of alternate/ renewable energy sources and energy efficiency are the key focus areas of the tie-up. With its state-of-the-art laboratory and some of the world?s best scientific talent, NUS is helping KSNR develop sustainable palm plantations in South East Asia and create manufacturing efficiencies in its plants in India.

Commenting on the tie up, Professor Arun Sadashiv Mujumdar, Centre Director, M3TC, said, ?This past year we have successfully completed the first stage of work with K S Natural Resources, which involved extensive mineral and nutrient analyses of plantation sites in order to devise an optimal plan to achieve accelerated crop growth. By identifying mineral deficiencies, fertiliser costs can also be saved by focusing only on those of need. We are currently conducting the second phase of studies of additional mineral analyses on potential future plantation sites for KSNR. Through a common framework, the third phase of collaboration is targeted on optimising KSNR?s production facilities by utilising the centre?s developed mathematical modelling capabilities. By using such mathematical modelling techniques we intend to increase plant energy efficiencies in order to lower KSNR?s overall operating costs.?

Today, India is one of the largest consumers of edible oil, and the highest consumed edible oil in India is palm oil. With a domestic production gap of over 5-6 million tonnes (approx) annually, import of edible oil is imperative. Edible oil companies like K S Oils are thus venturing abroad to create assured supplies at value prices. With two leading edible oil brands ?Kalash? and ?Double Sher? driving retail-led margins and hence overall profits, the cash rich company is utilizing the same to create agri-assets across the globe. The Indonesian and Malaysian oil palm foray will assure supply of crude palm oil to India.

K S Oils has the distinction of being India?s first edible oil company to acquire palm plantations in Indonesia and Malaysia. As the first phase of its investments, the company has acquired 20,000 hectares of palm plantation land in Indonesia. An estimated investment of about INR 3,700 million will be spread across three years. K S Oils plans to supply 80,000 tonne of palm oil to its manufacturing and refining plants in India from its plantations in Indonesia. These acquisitions are a part of K S Oils? strategy to secure its raw material supplies and insulate itself against price fluctuations. The acquisitions will also strengthen K S Oils? position in the Indian palm oil segment.