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Adani eyes 5 mn tonne sales from agro biz; to expand portfolioAdani eyes 5 mn tonne sales from agro biz; to expand portfolio
Press Trust of India | New Delhi
September 21, 2015
Riding on its strong food products portfolio, Adani Enterprises is expecting more than 20 per cent growth in sale proceeds from the segment, with volumes likely to reach 5 million tonnes.
The annual turnover of company's agri business is about Rs 20,000 crore at present and it sells wide range of food products which includes apple, various variants of edible oil, basmati rice, gram flour (besan), pulses among others.
"...The growth has been good from sale of processed food products, our sales was about 4 million tonnes last fiscal. We are expecting 20 per cent growth in sales and it will reach 5 million tonnes mark this year," Adani Agri Business CEO Atul Chaturvedi told PTI.
When asked, Chaturvedi said, "We certainly would expand our food product portfolio and always look for the opportunities."
Chaturvedi added that though chunk of the sales will continue to come from the edible oil, but now they are also relying on basmati rice and gram flour.
"Edible oil will continue to remain the largest contributor in terms of sales. But we are witnessing good response to our new products basmati rice and gram flour," he added.
The sales of both these commodities are close to 70,000 tonnes per annum each, and it seems that they will register a good growth this fiscal, he said.
In addition to this, the company is aiming to sell 30,000 tonnes of apples this year, compared to about 22,000 tonnes last year.
"We are looking to expand our capacity in case of apples, as of now we have capacity constraints," Chaturvedi said.
The group has three three main agro verticals - Adani Wilmar Limited (AWL), Adani Agri Logistics Limited (AALL) and Adani Agri Fresh Limited (AAFL).
Adani Wilmar is a 50:50 joint venture between Adani Enterprises and Wilmar International. It sells edible oil, pulses, rice, gram flour under the brand Fortune.
Whereas Adani Agri Fresh Ltd mainly deals into sales of apples in packed form.
Besides this, Adani Agri Logistics is an integrated bulk handling, storage and logistics system for food grains. It provides seamless end-to-end bulk supply chain to Food Corporation of India (FCI).
The company has 13 state-of-the-art silo and besides that it also has its own rail rakes and terminals in major cities.