Premium Nutrients to spend RM20mil on Indian plant expansion


  • Business
  • Friday, 11 Apr 2003

By IZWAN IDRIS

SPECIALITY fats manufacturer Premium Nutrients Bhd plans to spend RM20mil over the next 1 year to expand its recently-acquired processing facility in India.  

The company had invested RM6mil in August last year to acquire Arani Agro Oil Industries Ltd in Kakinada, a port town in Andhra Pradesh, India.  

“Arani Agro has made positive contributions to the group. We believe over the next 3 to 4 years, the unit would account for 30% to 40% of overall group profit,'' managing director P.N. Agarwal said at a briefing in Kuala Lumpur yesterday. 

He said the group planned to establish Arani Agro as a production base for the India market.  

Premium is en route to a KLSE second board listing in mid-June via a reverse takeover of PN4 company Bridgecon Holdings Bhd. The group is expected to release its prospectus next month. 

Agarwal said Premium's wholly-owned subsidiary, Johor-based Premium Vegetables Oil Bhd (PVO), was the only fully-integrated speciality fats and oil manufacturer in the world. The manufacture of speciality fats is a downstream activity in the vegetable oil sector. 

The speciality fats are used in a multitude of products ranging from confectionery to animal feed and pharmaceutical products.  

PVO started in 1985 as an initiative of the National Land Finance Co-operative Society (NLFCS), which is also a major shareholder. 

Premium's flotation involves an offer of 43.208 million 50 sen shares at an issue price of 50 sen each. 

Of the total, 20 million shares will be allocated for private placement, 5 million for bumiputra investors, 3 million for Bridgecon shareholders, 5 million for eligible directors and employees, and 10.208 million for the Malaysian public. 

“The listing exercise would not raise new funds for the company; rather it is done to meet the public spread requirement.  

The listing would also enable the group to have strategic access to the capital market for future expansion,” Agarwal said. 

After the completion of the exercise, NLFCS would remain as the single largest shareholder in the group with a 20% stake, he added. 

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