Thaindian News

Kolkata, Dec 31 (IANS) Kolkata-based fast moving consumer goods (FMCG) major Emami Ltd expects to touch Rs.5,000 crore (Rs.50 billion) turnover in the next five years, riding on portfolio expansion, a top company official said here Thursday.
“We will make it Rs.5,000 crore in five years. In the current fiscal (2009-10) we will touch Rs.1,000 crore,” R.S. Agarwal, Emami Ltd Chairman told reporters on the sidelines of its 26th annual general meeting.

He said the company would grow 20-25 percent every year.

Talking about the growth drivers, Agarwal said thrust will be given to the Ayurvedic division of the company and it may also look at launching a new product line in that section, developing separate brand and brand extension.

Acquisition of majority stake in Zandu Pharmaceutical in November 2008 is another factor that will help the company achieve the Rs.5,000 crore target, he said.

The company will largely depend on the marketing and sales division to achieve the target and a “big revamp is taking place in marketing”, he said.

Agarwal, who is also the joint chairman of Emami group that owns Emami Paper Mills Ltd, said: “We are in the process of setting up pulp and paper units. For that we may take some area in India or abroad.”

“We are looking at countries like Canada, Malaysia, Indonesia, Australia, the US, wherever it is feasible,” he said.

However, the largest newsprint manufacturer of the country, is eyeing companies with size not less than Rs.1,000-1,500 crore.

About Emami Ltd’s takeover of 68.9 percent stake of Zandu and its recent offloading of 19.6 percent, Agarwal confirmed: “We have no plans to offload below 51 percent.”

Emami Ltd plans to become debt-free by 2010, Agarwal said, adding that: “We have less than Rs.100 crore debt.”