MP to get Rs 15 cr agro unit

Itarsi-bsased refined soyabean oil maker will also acquire local firm

Itarsi-based Sanwaria Agro Oils Ltd will invest Rs 15.12 crore in establishing an agro-based food-processing unit at Mandideep, and acquire United Soya Products Ltd (USPL), also in Mandideep. USPL is closed since December 1993.

Sanwaria Agro Oils Ltd is one of the country's leading soyabean processors and refined soyabean oil makers. The firm was incorporated in 1991 to set up a solvent-extraction plant with a crushing capacity of 200 tonnes of soyabean per day and other minor oilseeds, at the industrial area of Kheda Itarsi.

It commenced production from December 1993. The company now produces 520 tonnes a day. In August 2001, the company set up a refinery with the capacity of 75 tonnes per day.

The firm launched its full range of edible oils under the brands "Sulabh", "Narmada", and "Sanwaria". Sulabh and Sanwaria are lower-segment brands while Narmada belongs to the premium segment.

The edible oil products are available in 1-litre, 2-litre, 5-litre and 15-litre pouches, tins, and jars. The company, according to sources, produces 233,400 metric tonnes of soya deoiled cake, 38,100 metric tonnes of soya refined oil, 30,000 metric tonnes of soya flour, 6,000 metric tonnes of soya nuggets, and 3,000 metric tonnes of soya granules.

"The acquisition will be completed in phases by next year. The firm has asked for concessions like mandi tax exemption for 10 years, exemption in electricity duty and property tax for 10 years, etc," a government source told Business Standard, adding, "the concessions and sops will be available for the company in accordance with the state's industry policy." The state government has cleared the acquisition process.

Promoted by RK Gupta, United Soya was incorporated in April 1983.

It started production five years behind schedule, with a 100,000-tonne soya-processing capacity. The company was declared sick by the Board of Industrial and Financial Restructuring in September 2004.