Mahindra & Mahindra's agri business division today entered into edible oils business and plans to get into dairy and pulses retail segments as well.
The company launched the 'NuPro' brand mustard oil in the premium segment for sale in the metropolis and its vicinity.
"Our initial focus in the mustard oil segment is Kolkata and its surroundings as it is the biggest market for this type. Then the product will be launched in neighbouring Odisha and Jharkhand," Ashok Sharma, president and chief executive of agri-business of Mahindra told reporters here.
He said the company will initially have contract manufacturing of the oil at Jaipur.
"Depending on the response, we will then think of setting up our own plant," he said.
With the average industry margins in edible oils hovering around three per cent, Mahindra was expecting to get around five per cent after the initial period as a lot of money would have to be spent in building the brand.
Later , it would also enter other oil segments like sunflower, soya and rice bran among others, he said.
Mahindra is also planning to enter the dairy business this financial year with the launch of milk, Sharma said, adding that it would gradually move towards the foods segment.
Sharma said that the company would also launch pulses for the retail segment. Presently, it was selling them through B2B channels.
In the last four years, revenue from the agri-business increased from Rs 70 crore to Rs 580 crore.
"This fiscal, we intend to clock a revenue of Rs 1000 crore," he said.
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