Gokul Refoils' Q1 net up 55%, plans major expansion

Edible oil manufacturer Gokul Refoils and Solvent's net profit grew 55 per cent at Rs 10 crore in the quarter ended June 30.

The company had posted a profit of Rs 7 crore in the year-ago period.

Net sales stood at Rs 874 crore, up 71 per cent in Q1 FY11 against Rs 511.37 crore in the corresponding quarter last year.

"We expect strong quarters ahead with 50-60 per cent growth in top-line. We also plan to expand our edible oil manufacturing capacity this fiscal. Besides, we are looking at strong promotional activities for our premium oil brand Gokul in the coming quarters," GRSL's Vice-President Corporate Strategy Praveen Khandelwal told PTI here today.

The company's current manufacturing capacity is 2,900 metric tonnes per Day (MTPD), which the company plans to up to 4,900 MTPD this fiscal, he said.

The company is scouting for opportunities in Maharashtra and eastern coast of South India for setting up the refineries. Currently, it has 4 units in Sidhpur, Gandhidham, Surat and Haldia.

"We are studying the feasibility report in these areas (Maharashtra and south India). It can be a green field expansion or an acquisition," Khandelwal said.

Besides, it is also strongly focusing on advertising and marketing of its Gokul edible oil brand.

"We want to have a pan-India presence for Gokul. We are focusing on ATL and BTL activities. We will be launching our first TV commercial in the next quarter," he said.