SINGAPORE: India's KS Oils Ltd, which already owns 364.3ha of oil palm estates in Malaysia, is on the lookout for more land.
KS Oils managing director Sanjay Agarwal said the firm in November 2007 spent US$4 million (US$1 = RM3.65) to buy land in Lahad Datu, Sabah.
This forms part of its strategy to supply some 80,000 tonnes of crude palm oil to Indian consumers. "But I have to admit it is not easy to buy oil palm land in Malaysia because they are limited and more expensive compared to Indonesia.
"But we might consider whenever we have the opportunity," Agarwal told reporters at the launch of its first international headquarters outside of India. KS Oils is India's largest integrated edible oils manufacturer, refiner, processor and seller. It has also spent US$65 million to buy 20,000ha of oil palm estates in Indonesia.
The processor and crusher of all edible oils such as palm oil, mustard oil and soyabean oil is the first Indian edible oil company to own plantations outside of India.
"The plantations are part of our raw material requirements of around 80,000 tonnes of crude palm oil which we need to supply back home.
"We are not here to compete with other edible oil processors such as IOI Corp Bhd, Sime Darby Bhd and Wilmar. We are here just to supply our own domestic consumption," said Agarwal.
The firm aims to generate US$1 billion revenue a year by 2014 from its Singapore-based subsidiary KS Natural Oils, which will be the nucleus of KS Oils global business operations.
Morena-based KS Oils, which sells its products under the brand name Kalash and Double Sher, is controlled by the Garg and Agarwal families. It owns seven manufacturing plants in India.
It is listed on the Mumbai Stock Exchange. It also has a research and development partnership with the National University of Singapore.
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