Gemini Edible to focus on retail sales
Nov 29 2012 , Hyderabad
“We hope to become a Rs 1,600 crore company this financial year. To focus more on retail sales we would convert our existing bulk sales into brand sales as it has better margins. This will help us fetch further growth and we would also expand our existing facility at Kakinada,” said Padeep Chowdhry, managing director of the company.
Gemini has two manufacturing units with a total capacity of 1,000 tonnes per day. By the end of the year, they would further expand the capacity by 200 tonnes, investing around Rs 25 crore.
Of the total sales, around 40 per cent comes from brands, 30 per cent from institutional sales and the rest 30 from bulk. While institutional sales have a margin of 4-8 per cent, retail has 5 per cent and bulk sales have the lowest at 2 per cent.
Under the Freedom brand, the company sells sunflower, Soyabean, palmolein oil and vanaspati. After converting bulk sales into brand sales, the company would add other products like rice bran oil and other niche products, especially under the health segment.
The company, however, only reaches out to states like Andhra Pradesh, Odisha, Chattisgarh and has recently launched in other southern states like Karnataka and Tamil Nadu. “The business has been growing rapidly and once we are strong here we will reach out other states. In Andhra, we have a 15 per cent market share and in Odhisha it is 25 per cent,” he said.
This year, the company had made revenues of Rs 1,358 crore. Ruchi Soya Industries, which is said to be the largest edible oil company has 50 per cent stake in the company.