Rasoya Proteins to enter into maize based ethanol production

Modalities for funding these projects being worked out but, preferably, fund arrangement will be combination of debt and equity

After establishing its mettle in edible oil and processed soya products, Rasoya Proteins is planning to enter into maize-based ethanol production with a capital expenditure of Rs 400 crore.

The company plans to set up a large ethanol production unit for which orders for plants and machinery have already been placed. Rasoya Proteins plans to procure maize directly from local stockists in Nagpur and surrounding regions in Maharashtra.

"We are looking to set up a large rice milling unit for selling in packed form under 'Rasoya' brand in addition to a rice bran processing unit for producing health conscious edible oil. We are also considering setting up of two technology driven pulses processing units which will have no human intervention. All proposed expansion plans are estimated to entail total capital expenditure of Rs 400 crore," said Prashant Duchakke, Executive Director, Rasoya Proteins.

Modalities for funding these projects are being worked out but, preferably, fund arrangement will be a combination of debt and equity, he added.

Rasoya Proteins is looking to expand its horizon with diversified agri portfolio. The company currently has a wheat flour processing unit Yeotmal. Another wheat flour processing unit is proposed to be set up in Malakapur, Maharashta. It is planning to sell its products especially wheat flour under "Mejwani" brand in 1 - 10 kgs pack.

The company currently produces and exports its products to several countries including Thailand, Sri Lanka, United Arab Emirates, Indonesia, Vietnam etc. The company claims to have several bulk orders for execution. The quality of soya de-meal is well accepted in international market especially on account of higher protein content.

Rasoya Proteins reported consolidated sales of Rs 672.69 crore for the quarter ended December 2013 as against Rs 452.13 crore in the same quarter previous year. The company's net profit stood at Rs 18.23 crore for December 2013 quarter versus Rs 5.71 crore in the corresponding quarter previous year.