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| Emami Biotech to set up biofuel project in Ethiopia |
| BS Reporter / Kolkata Aug 04, 2009, 00:55 IST |
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Emami Biotech, a part of the Rs 2,000-crore Emami Group, will invest Rs 400 crore in a plantation project over five years in Oromia in Ethiopia. The company will engage in plantation of biofuel crops (jatropha) and other edible and non-edible oil seeds on 100,000 acres allotted to Emami Biotech by the Oromia Investment Commission.
At a press conference in Kolkata today, Group Director Aditya Agarwal informed that Emami had already taken possession of 27,500 acres and work had begun, involving a capital outlay of about Rs 120 crore. The project also envisages setting up an extraction plant.
“While Emami Biotech will bear 30 per cent of the project cost, the remaining funds will be mobilised from banks and financial institutions,” Agarwal said.
Once completed, the project will be able to churn out 100,000 tonnes of crude biofuel or edible oil per annum. While the biofuel will be exported to India for producing biodiesel, the edible oil produced in Ethiopia will be used for local consumption. The commercial plantation work has already begun on the land, which has been offered to Emami Biotech on a 45-year renewable lease. It had engaged Mott McDonald for conducting a feasibility study for the project.
“So far, this is the biggest overseas project of Emami Group. Also, Emami Biotech has entered into a technical collaboration with the Tamil Nadu Agricultural University for the institution’s expertise in agri-related projects,” Agarwal said.
Another Emami Group Director Manish Goenka said: “We chose Ethiopia for investment because of availability of labour, contiguous land, congenial business environment and stable law & order situation. Besides catering to our domestic needs, the Ethiopian project has a huge potential for the global export market.”
Emami Biotech is also planning to develop two edible oil plants in Gujarat and Tamil Nadu.
“We have already signed a memorandum of understanding with the Gujarat government for developing the plant and are scouting for an appropriate site in Tamil Nadu near the ports. The initial capacity at the Gujarat plant would be around 1,000 tonnes of edible oil a day,” Goenka said.
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