 "S N Jhunjhunwala")
Varanasi-based JVL Agro Industries, a Rs 4,400-crore company, is among the leaders in its segment. It primarily manufactures hydrogenated vegetable oil (vanaspati ghee) and refined oils for domestic and export markets. Now, the company is expanding with an eye on future. JVL Agro Industries Managing Director S N Jhunjhunwala tells Virendra Singh Rawat about his company and its blueprint for the coming years. Edited excerpts:
Give us a brief overview of the JVL group.
JVL Agro Industries Ltd, with its headquarters in Varanasi, is a leading company making edible oils. It is listed on the National Stock Exchange (NSE) and BSE.
JVL, the third-largest edible oil company in India, has the country's largest hydrogenated vegetable oil manufacturing unit, in Jaunpur (Uttar Pradesh). The company imports crude palm oil and soybean oil from Malaysia, Indonesia, Argentina and Brazil. It has a subsidiary in Singapore and agriculture-based business activity in Ethiopia.
It is one of the fastest-growing professionally managed industrial groups and has a strong presence in Uttar Pradesh (with a market share of 30 per cent), Bihar, West Bengal, Jharkhand, and Odisha. It has a network of thousands of distributors, depots and sale points.
Now, the JVL group is in an expansion mode and is looking at constructing an integrated township over 450 acres at Sahupuri in Chandauli district of Uttar Pradesh. To cater to the growing demand for vegetable oil in the state, we plan to set up another processing facility with an investment of about Rs 200 crore. The company is also setting up palm and soybean oil refineries in Gujarat and the Northeast.
Soon, we shall enter the African market with our oil products. The company has also invested in a rice mill in Bihar. It is further looking at investing in sugar and dairy in UP.
Are there new product lines and virgin forays that JVL is looking at?
We plan to diversify in other food products and emerge as a leading fast-moving consumer goods (FMCG) player. Accordingly, we now plan to enter into other food products like rice, pulses and spices. We also plan to enter the soap market. We have already started selling rice, being processed at our rice mill in Dehri-on-Sone, Bihar. The mill has an installed capacity of 288 tonnes a day.
It is also awaiting approval from the Union ministry of food processing for a mega food park spanning 90 acres at Rohtas in Bihar. This will help us foray into cold storage, flour and food processing. We also plan to go into premium oil portfolio like cottonseed oil.
Your views on the current economic and business environment in India?
Results of the last Lok Sabha elections and the fall in fuel prices have created a positive sentiment and helped ease inflationary pressures, thereby containing fiscal deficit. India, with a booming stock market, is the fastest-growing economy in the world.
However, the much-desired industrial reforms, such as single-window clearance, ease of operational laws, concrete policy for sector-wise growth and expansion, are still to materialise.
The corporate sector is getting a little impatient.
The UP government has announced new policies in several sectors? Are you satisfied with the industrial road map of the state?
Although every positive step towards industrialisation is always welcome, we are not very happy with the recent measures.
The government seems to have tweaked previous policies and introduced those as new; this does not actually help businesses. There can be no comparison between the incentives being offered in neighbouring Bihar and those in UP. Further, the lack of infrastructure is a major deterrent.
Under Chief Minister Akhilesh Yadav, the wave of reforms has started. But UP is yet to provide the perfect atmosphere.
What are the major challenges being faced by industry in UP vis-à-vis other states, especially the neighbouring ones?
There are several areas. Faster decision-making, proper infrastructure, announcement of incentives for industry, providing employment to masses, development of industrial corridors, and shaping UP as a hub for businesses are some.
Eastern UP and Bundelkhand seem to be lagging. How do you sum up this situation? What could be the way forward?
UP is the most populous state of India. Eastern UP is the most economically backward part of the state. It has very few industries. The area has a lot of untapped potential. If harnessed, it will help the government achieve its aim of making the state an ideal one, generating employment, revenue (from higher taxes), and development of infrastructure through medical and educational facilities.
Varanasi is now represented in Parliament by the prime minister, Narendra Modi. How does this augur for Varanasi and the adjacent districts?
With the prime minister representing Varanasi, there is great excitement about proposed improvements in the city, especially on the infrastructure front.
The PM has adopted Jayapur to develop it as an "ideal village", reflecting his commitment. The Clean Ganga initiative has also provided a sense of hope that the river will soon be free of toxic waste.
Due to limited opportunities, people leave Varanasi and migrate for work. If the PM can check the brain drain, and provide a suitable environment for work, it will be a boon.
