Ruchi Group earmarks $150-mn for expansion

Madhya Pradesh-based Ruchi Group of Industries plans to invest around $150-million over the next three years to fuel its expansion in the palm oil business in India and overseas,a senior company official said.

Ruchi Soya Industries, the flagship company of the Ruchi Group, manufactures palm oil in India.

"Domestic demand for palm oil is increasing continuously and there is a huge scope for palm oil production here. The Group plans to invest around $150-million over the next three years in India as well as overseas," Ruchi Soya Industries' Corporate Head (Palm Business) NK Arora told reporters here.

The funds would be used to expand oil production capacity in India and increase the area under palm plantation in both domestic and overseas markets, he said.

At present, Ruchi Soya has three oil production units -- two in Andhra Pradesh and one in Karnataka -- with an aggregate capacity of 61 metric tonne (MT) per hour.

The company plans to set up two more processing units -- one each in Orissa and Karnataka.

Besides, it also plans to expand production capacity at its Kakinada plant in Andhra Pradesh by setting up another unit with a capacity of 40 MT per hour, which can go up to 80 MT per hour.