Sanwaria Agro Oils plans Rs 110 cr expansion

The company, which currently, has a crushing capacity of 2,150 tpd, will opt for organic as well as inorganic routes to increase its capacity.

"We will increase our capacity by 1,000 tpd via greenfield expansion and the rest by acquiring a plant in Madhya Pradesh," said Anil Agrawal, director, Sanwaria Agro Oils.

The greenfield mode will require Rs 100 crore, which will be funded through debts as well as equity and the acquisition will cost us Rs 10 crore which will be managed by our internal accruals, he added.

Both the expansion plans will be commissioned by the last quarter of FY09.

At present, the company has its own units in Mandideep and Itarsi in Madhya Pradesh with a total capacity of 1,500 tpd.

It also has a leased unit of 650 tpd at Vidisha in the state.

The company processed 300,000 tonne of soybean in the previous financial year and hopes to crush over 400,000 tonnes in the current financial year.

Out of the total revenue of Rs 950 crore 20 per cent came from edible oil, 60 per cent from de-oiled cakes and rest from trading activities.

The company expects its revenue to rise 50-60 per cent in FY09, driven by the increase in its crushing capacity.

The company also hopes to improve operating margins by focusing on value-added products. The company also plans to increase it distribution network from the existing six states to ten states by the end of the year.