Press Trust of India / Chandigarh
Having positioned itself as a leading rice bran oil brand in the country, A P Solvex Limited now plans to venture into overseas market by setting up its first oil extraction and refining plant in Indonesia with an estimated investment of Rs 30 crore.
"We have selected Indonesia (for facility) as it is one of the largest rice producing country in the world and raw material for our product will be available in abundance for our plant," A P Solvex Limited Chairman and Managing Director A R Sharma said.
The company has proposed to set up an oil extraction facility with a capacity of 600 tonnes per day and a refining unit of 100 tonne per day.
A P Solvex, which supplies its rice bran oil to Pepsico for its 'Kurkure' and chips brand manufactured in Punjab, is also keen to forge similar tie-ups in Indonesia.
"We are in talks with Pepsico for providing them rice bran oil to be manufactured in Indonesia to cater to their requirements in that country," he informed.
At present, the company has one of the largest rice bran oil facility at Sangrur in Punjab with a capacity of 800 tonnes per day.
Apart from this, the edible oil maker has also decided to foray into neutraceutical space with the setting up of a new facility in Punjab at a cost of Rs 10 crore.
"Since residue of rice bran oil can be used for making health supplements including lecithin- a brain nutrient, foraying into this segment is an obvious choice for us," he said.
A P Solvex is also in talks with the National Dairy Development Board for manufacturing rice bran oil for its famous 'Dhara' brand.
"We are already supplying rice bran oil to Marico Limited for its Safola brand and Bhilwara group Company RCM," he said.
Claiming to have 50 per cent market share in rice bran oil refining, A P Solvex is eyeing a turnover of Rs 500 crore in FY'10 against Rs 450 crore in 2008-09.