Mahindra & Mahindra’s agri business division recently entered the edible oil space with the ‘NuPro’ Virgin Kachchi Ghani Mustard Oil. The company also plans to get into dairy and pulses retail segments as well.
“Our initial focus in the mustard oil segment is Kolkata and its surroundings as it is the biggest market for this type. Then the product will be launched in neighbouring Odisha and Jharkhand,” said Ashok Sharma, president and chief executive of agri-business of Mahindra, in a press statement.
The company will initially have contract manufacturing of the oil at Jaipur. “Depending on the response, we will then think of setting up our own plant,” Sharma said.
With the average industry margins in edible oils hovering around three per cent, Mahindra is expecting to get around five per cent after the initial period, as investments in building the brand are likely to be heavy.
Mahindra is also planning to enter the dairy business this financial year with the launch of milk, Sharma said, adding that it would gradually move towards the foods segment.
The company’s revenue from the agri-business increased from Rs 70 crore to Rs 580 crore, in the last four years. “This fiscal, we intend to clock a revenue of Rs 1000 crore,” Sharma asserted.