MMTC to enter branded edible oil market

MMTC Ltd, India's largest international trading company and a leading importer of edible oil, on Saturday unveiled a plan to launch its own branded product to capitalise on the Rs100,000-crore domestic market for the cooking medium.

The Rs26,423 crore (revenue) trading house will soon be commissioning pre-launch marketing study covering the prospects of branding and marketing of sunflower oil, soyabean oil and palm oil.

MMTC, which imported 2,00,000 tonnes of edible oils mainly from Malaysia and Indonesia, would outsource the refinery and packaging of the product. However, it would retain strict quality control over the refining units, an official said.

The branded segment accounts for less than 40 per cent of the Rs100,000-crore market for edible oil. India meets 43 per cent of its cooking oil requirements through imports.

Adani Wilmar, ConAgra Foods Inc and Cargill are the main players in the segment.

MMTC recorded outstanding performance by achieving record turnover of Rs32,030 crore during April-December 2008 - a quantum growth of 90 per cent over the turnover of Rs16,884 crore recorded during same period of last fiscal.

MMTC's highest ever turnover of Rs32,030 crore, which includes exports of Rs3,377 crore, imports of Rs27,567 crore and domestic trade worth Rs1,086 crore, represents a growth of 24 per cent, 106 per cent and 34 per cent, respectively.

During the period, MMTC posted a net profit before tax of Rs191.45 crore. MMTC's net profit after tax increased to Rs.125.45 crore, which is the highest ever net profits generated by MMTC in any first three quarters of the year since its inception in 1963.