The unit is expected to be operational in April this year.
"We have two manufacturing units in Kashipur (Uttrakhand), of which one is owned by us and the other is a rented one. We are now setting up a new manufacturing unit in Kahrani in Rajasthan with a 25,000 tonne annual capacity," Dr Oetker India Managing Director Oliver Mirza told PTI.
He said, if required in future the annual capacity of the Rajasthan unit can be expanded to 50,000 tonne. The company has invested Rs 250 crore in equity for setting up the unit, he added.
He said the company is also looking at exports from the Rajasthan unit.
"This new manufacturing unit will mainly cater to the domestic market as the consumption in India is big enough. However, with the additional capacity we are also looking at exports. We expect to begin exports from 2017, to countries like Sri Lanka, Malaysia, Nepal and South Asia, where there is a demand for vegetarian Mayonnaise," he said.
In sauces, this plant in Rajasthan will be the company's biggest unit globally.
Dr. Oetker has 40 manufacturing units world over.
The company is also looking at relaunching muesli in India in 2017.
"In 2011, we had launched muesli in the country, which was entirely imported. So in 2013, it was a business decision to withdraw the product from the Indian market. We are planning to relaunch our muesli range sometime in 2017, which will be manufactured from the Rajasthan unit," he added.
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