News & Events
SKM to pump in Rs.20 cr. For Rice Bran Oil Unit 31/01/2008
ERODE – BASED SKM Animal Feeds and Foods (India) Limited, which diversified into cooking oils last year, is investing Rs.20 crore to set up a manufacturing and packaging unit for rice bran oil.
With alternative cooking oils gaining acceptance among the health conscious both in India and overseas – the company aims for a lion’s share in the health food business with its branded rice bran oil ‘PORNA’.
Popularly known as ‘heart oil’, rice bran oil has gained a large market share in Japan, Korea, China, Taiwan and Thailand. Produced from the outer brown layer of rice, known as bran, rice bran oil is rich in natural anti-oxidants and has nutraceutical properties like Oryzanol.
“India is the second largest producer of paddy in the world after China. We believe India has the potential to produce 12 lakh tonnes of rice bran oil. Against this, the actual exploitation is about seven lakh tonnes” SKM Managing Director Dr.M.Chandrasekar told ET.
“If the full potential is exploited, the production can be increased to 10 lakh tonnes in next three year which will reduce dependency on import of edible oils to some extent,” he said.
Currently, the PORNA brand is retailed in Tamilnadu. It will make its entry into Andhra Pradesh and Kerala over the next three months. The Company is targeting a turnover of Rs.120 crore for 2007-08 from its rice bran segment alone, Dr.M.Chandrasekar said. Right now, the group’s turnover is Rs.350 crore.
“We want to consoliate our presence in southern market before going pan-India” he said adding the Company is already started exports to Malaysia and West Asian countries.
The group has set up its manufacturing and packing unit in Erode at a cost of Rs.20 crore for refining rice bran oil. The 12-acre-facility has a capacity to refine 100 tonnes of oil a day. Observing that even couple of years ago, the whole of the rice bran oil produced in the country was mainly used for industrial purpose or as product mix in vanaspati he said nutritional significance of the oil and shortage of edible oil has opened up vistas for rice bran oil as a cooking medium.