K S Oils, the leading integrated edible oil FMCG Company acquired a refinery in Haldia Port in East India. The refinery will produce refined oil under the current brand name of KS Refined and KS Gold Refined for consumers in North East, West Bengal, Orissa, Bihar, Jharkhand and Uttar Pradesh.
The company acquired the refinery plant for a consideration of Rs. 125 crores from Amfoo Agro Products Limited, a leading agro player headquartered in Kolkata. The plant has a refining capacity of 500 metric tonnes per day (tpd) with a vanaspati unit of 150 tpd and is located within the Haldia Port with a direct pipeline access to ships. Haidia has the most sophisticated port facilities with extensive storage facility for diverse cargo and docking of large ships, thus facilitating international trade.
With the company's FMCG focus of becoming a pan India edible oil player, this refinery will facilitate logistics efficiencies and significantly collapse the time to market for its consumers in East India, With 6 plants in north and central India and this facility in East, the company can every part of this India. Previous to this acquisition, the company imported crude oil at the west coast, transported them to its plants in north and central India and again transported the finished products to its main markets in north and east India. With this acquisition, the company plans to import substantial part of crude edible oil requirements directly to Haldia and then transport the refined oil products to key markets in Eastern India. This will significantly reduce the transportation and logistics: costs and also make available KS refined oil products in a quicker time.
With this new plant in West Bengal, the company's refining capacity will go up significantly. The company posted a turnover of Rs. 2,040 crores in FY07-08 with a bottom-line of Rs, 120 crores. A leader in the mustard oil segment, the company has an entire bouquet of product offerings across all edible oil segments -mustard, soyabean, palm and other refined oils.