VOFL to enter capital market, diversifies into snack business

Ahmedabad, Oct 31 (UNI) Mehsana-based Vimal Oil and Foods Limited (VOFL) is entering the capital market with equity shares of Rs 10 each aggregating about Rs 35.83 crore.

It has filed a draft offer document with the Sebi, the Bombay Stock Exchange and Ahmedabad Stock Exchange.

The company, which is into edible oil business, is taking a big leap into the Rs 6,000 crore plus food processing business which is growing at an annual average rate of 30 to 35 per cent, company CMD Jayesh C Patel said here today.

VOFL, a ISO 9001:2000 certified company, is now diversifying into snack food business and has begun implementing a Rs 41.33 crore diversification project for the manufacture and marketing of potato chips, fried type 'extruded' snack, direct wet fried snacks and filled and unfilled snacks entailing an investment of Rs 41.33 crore, Mr Patel said. There would be five different flavours and it would come in packets of different shapes and sizes, he added.

The project is now in advanced stage of implementation and the product is expected to be launched by July 2007, he said.

''We have done our market research and with our reach of 21 depots and 950 distributors and four lakh retail shop all over India, we expect to do well in the snacks business,'' he said.

The net sales income of VOFL was Rs 115.35 crores in Q2 of this year as against Rs 113.71 crores. The net profit was Rs 1.51 crore against Rs 1.34 crores in the same period last year.

According to the unaudited results taken on record by the board of the company, the total income from sales for first half of the current fiscal has been estimated at Rs 215.94 crores compared to Rs 180.80 crores last year.

UNI VNB MAZ AW1725