K S Oil profit grows by whopping 377 per cent
MORENA-BASED K S Oil Limited, one of India?s leading edible oil companies and the highest processor of mustard seeds and oil in India today, announced today that revenue growth for the financial year 2005-06 had touched a record high of Rs 604.27 crore registering a healthy growth of 34 per cent over Rs 455.11 crore in 2004-05.india Updated: Apr 18, 2006 15:56 IST
MORENA-BASED K S Oil Limited, one of India’s leading edible oil companies and the highest processor of mustard seeds and oil in India today, announced today that revenue growth for the financial year 2005-06 had touched a record high of Rs 604.27 crore registering a healthy growth of 34 per cent over Rs 455.11 crore in 2004-05.
A spokesman for the company said here that the company’s profit after tax grew by a whopping 377 per cent to Rs 16.02 crore from Rs 3.36 crore in the previous year. The company’s profit after tax grew by 276 per cent to Rs 5.42 crore from Rs 1.44 crore in the corresponding quarter of the previous year.
K S Oil Limited is a leading integrated edible oil manufacturing company with a product line in mustard, groundnut and soyabean oil. The company is headquartered in Morena and has a history of over 100 years in the commodities market. It is listed on the Bombay Stock Exchange (BSE) and is the largest processor of rapeseed oil cake in India.
The company has also decided to give renewed thrust to its retail business and in the current year the share of the retail market in total turnover has increased substantially.
The company is in talks with leading retail chains, hypermarkets and MNC companies for supply of its products to the end consumer and also to strengthen its retail basket by selling in smaller sachets and pouches, which are more affordable.
The company is looking at both organic and inorganic growth and is expanding its refinery capacity and is in negotiations for acquisition of new plants in Rajasthan. This will give the company increased production capacity, newer geographies of operation, which would result in an efficient and cost-effective ‘go to market strategy’. The acquisition will specifically help the company address key markets in India, other than east India.
The company plans to maintain its leadership position in the mustard oil segment and is actively developing derivatives and additives of mustard oil. The company feels that its market dominance in northeast and east India could be replicated across the country and is on a consolidation mode for the same.
The company plans to launch a nationwide initiative in collaboration with the medical fraternity and other related people to highlight the benefits of using mustard oil in cooking, thus making every family in India healthier and every homemaker getting the promise of good health.
Company chairman Ramesh Chand Garg said on the occasion, “This year has been historical in many aspects. We have touched all-time high growth and have been able to deliver robust profitability. With our strong performance and strategic initiatives like foray into retail, strengthening our brands and being a consumer focused company, we hope to continuously add value to all our stakeholders.”
Company chief executive officer Sanjay Aggarwal said that K S Oil was poised for substantial growth and the performance this year confirmed their ability to become a significant player in this industry.