The company has launched Smart Balance Immunity Booster Oil, the new variant under its ‘Healthy & Tasty’ cooking oil brand, as around 85% of its distribution channels are back to normal now after the Covid-related disruptions.
Emami Agrotech, the edible oil and bio-diesel arm of the diversified Emami Group, on Thursday said it expects to clock around Rs 150-crore business this fiscal from its latest variant of edible oil on the back of a greater awareness of the need for wellness. The company has launched Smart Balance Immunity Booster Oil, the new variant under its ‘Healthy & Tasty’ cooking oil brand, as around 85% of its distribution channels are back to normal now after the Covid-related disruptions.
“We expect Rs 150-crore business from our newly-launched edible oil in the next eight months. We have invested around Rs 5 crore in the research and development (R&D) to develop this product, while another Rs 5-7 crore was spent on capacity development. We will be spending around Rs 100-odd crore in the next two years for marketing of this product,” Emami Group director Aditya V Agarwal told FE.
Speaking on the launch of the product, Agarwal said there was a rising concern of family wellbeing in general in the post-Covid-19 world and consumers were in search of food products and supplements to enhance their family’s immunity. Amidst this, the company’s R&D team developed the latest variant of edible oil to address this basic need of a consumer, he said.
He said around 85% of the company’s distribution channels, in both urban and rural areas, were back to normal at present. “Currently, situation in two states are very bad. We expect that our distribution channels to be fully normal when situation in these two states would improve. It may take one or two months time,” Agarwal added.
Currently, the capacity to produce edible oils stands at 7000 tonne per day for the company. Last fiscal, its revenue from sales stood at Rs 12,000 crore. It produces edible oils under the brands — Healthy & Tasty and Himani Best Choice — and manufactures biodiesel.
Emami Agrotech has been setting up a greenfield plant in Gujarat’s Kandla, pumping in around Rs 500 crore. “Due to Covid-related disruptions works at the project were stopped earlier,” Agarwal added.