Anil Products to set up modified starch plant

Ahmedabad-based Anil Products Ltd. (APL), formerly known as Anil Starch Products Ltd., plans to set up a 400 tonnes a day greenfield plant for modified starch products. The plant will come up with an investment of Rs 500 crores. The company is in the process of identifying land. APL will also set up a power plant for captive use.

The company intends to fund the expansion through a mix of internal accruals, credits and debt. The final decision is yet to be taken.

The company, which already has a presence in Europe, middle and south-east Asian markets, is focusing on value-added products for exports market.

In a bid to tap the high demand in the export market, the company has decided to set up the new plant. The company is also expanding its existing facilities with total investment of around Rs. 45 crores.

"Our user industries are growing well. The demand for value-added products has increased. Also, we intend to grow our business in the exports market. As a part of our strategy, we have decided to expand our existing facility as well as setting up a greenfield plant. The new plant will focus on value added products including modified starch segment. At present, we are looking for an appropriate location, which may be in or outside Gujarat. The plant will come up in 2010," Amol Sheth, managing director, Anil Products told.

"For the greenfield project, we intend to set up a captive power plant with a capacity of anything between 4 to 8 megawatt," he added. The company is open to grow inorganically and it looking at such company which can create synergy to its existing business. At present, we have no proposal for merger or acquisition, however we are open for it, he said.

Anil products, which caters to various user industries including textile, paper, pharmaceuticals, confectionary, foods, personnel care products, toothpaste and cosmetics, will double its existing manufacturing capacity for modified starch to 4,000 tonnes per month and for that it will shell out over Rs 12 crore over the next two years.

Besides, it will invest around Rs. 30 crore to enhance its grinding capacity from 400 tonnes per day to 600 tonnes per day. The whole expansion process for the company's existing facility will be implemented in two stages and the entire process will be completed by mid 2009.

The company produces a diverse range of starches from native maize starches, modified starches, to speciality starches, besides refineries, enzymes and related downstream products like dextrose monohydrate, anhydrous dextrose, and liquid glucose (corn syrup), said a company source.