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Wednesday, October 07, 2009

KS Oils to invest 3.8 bln rupees in Indonesia

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MUMBAI, October 07 (Reuters) - Edible oil maker KS Oils Ltd (KSOI.BO: Quote, Profile, Research) said on Wednesday it has expanded its land bank for palm oil plantation in Indonesia and will invest 3.8 billion rupees to develop it over the next three years.

It has acquired 53,000 acres for plantations in the country, its third tranche of land parcel since 2008, it said in a press release. Its total land bank in Indonesia is 130,000 acres.

The company's unit, KS Natural Resources Singapore, which will fund the project, has tied-up equity infusion of 3.75 billion rupees from its parent, according to the release.

The firm, which sells oil under the brands 'Kalash', 'Double Sher' and 'KS Refined', will look for similar acquisition opportunities in Indonesia, where the cost of palm production per hectare is the lowest.

"We are following the footsteps of global agri-companies in building self-owned palm plantations in Indonesia, the lowest cost producer of crude palm oil in the world," Managing Director Sanjay Agarwal said in a release.

At 1.09 p.m., shares in firm were up 0.52 percent at 68.3 rupees in a choppy Mumbai market. (Reporting by Swati Pandey; Editing by Prem Udayabhanu)