Thursday, March 28, 2024

Advertisement

Emami acquired Rasoi brand

By Nabamita Chatterjee | Vjmedia Works | September 27, 2014

The acquisition is part of Emami's plan for inorganic growth

Emami Biotech Ltd, the edible oil and bio-diesel arm of the Rs 8,000 crore Emami Group of Companies, has entered into an agreement with Kolkata-based Rasoi Limited, the edible oil arm of Rasoi Group to acquire Rasoi, a brand with a rich legacy of 50 years that continues to be one of the most trusted brands of vanaspati and edible oil in India.  The agreement was signed on September 25.   The acquisition will be an addition to the company's existing portfolio of leading edible oil brands such as'Emami Healthy & Tasty' and'Himani Best Choice'.

Additionally, Emami Biotech plans to set up its third refinery with a capacity of 2,000 TPD in Gujarat to cater to the northern and western markets, which is expected to become operational in the next 18-24 months.

Commenting on the development, Aditya V. Agarwal, Director, Emami Group said, "Rasoi is a heritage brand that enjoys very strong brand equity. It is a leading vanaspati brand in West Bengal and one of the leading producers of vanaspati in India that enjoys a strong legacy of consumer trust. The brand offers synergy with our edible oil business which will offer great value.  With the acquisition of the Rasoi brand, we would be adding vanaspati to our existing portfolio, enabling us to offer a wide range of choices to our consumers.”

Manish Goenka, Director, Emami Group added "Emami Biotech is poised to be a Rs 5,000 crore company by end of this financial year. The acquisition of Rasoi brand is part of our inorganic growth plan and has been funded internally.  This is line with our overall growth strategy to emerge as the one of the top three edible oil companies in India.”

With a sales turnover of around Rs 150 crore, the production of vanaspati attributes about 90 per cent of Rasoi's portfolio, the rest being other varieties of cooking oil such as mustard oil, soya refined oil and palm oil.  India produces around 10-12 lakh tonnes per annum of vanaspati, out of which premium branded vanaspati segment is about  4 lakh tonnes per annum.   Vanaspati is an affordable variety of cooking medium which is used in households, restaurants, sweet shops as an economical alternative to ghee.   It is also a popular cooking medium in household segment especially in regions like UP, Bihar, North East, and Jharkhand, etc.  Rasoi as a major player in the vanaspati market has a strong base in the eastern region and is the leading vanaspati brand in West Bengal.  As an age-old brand, Rasoi enjoys huge consumer trust.

A Rasoi spokesperson said, "Rasoi is a brand which we had built over the years with a lot of commitment and hard work. Today it commands a strong consumer loyalty. Therefore, we were looking for an entity that can carry on this hard earned legacy.  Emami Biotech Ltd, with its wide experience in the sphere of edible oil business, has built powerful oil brands like Emami Healthy & Tasty. We are happy that we are handing over the Rasoi brand to Emami Biotech Ltd who has every potential to take it to greater heights.”

On this occasion, Sudhakar Desai, CEO, Emami Biotech Ltd said, "Our primary focus would be to leverage the brand's consumer good will.  Rasoi brand has a strong potential of both geographic and category expansion. Hence, we have plans to strengthen its distribution network across the country and establish it as a front running vanaspati brand nationally. Going forward, we plan to diversify and grow the brand with other cooking oils and even into other categories and products leveraging the legacy of the trust earned over the last 50 years across households.”
Advertisement

Related News

Advertisement
Have You Say
Advertisement
Resource
Follow Us On
Advertisement