KS Oils today said it has acquired an edible oil refinery of Ambo Agro Products for about Rs 125 crore, following which its scrip surged over seven per cent.In a filing to the Bombay Stock Exchange (BSE), KS Oils said it would fund the acquisition of the edible oil refinery in Haldia Port through a mix of long-term debt and internal accruals.

After the announcement, the shares of KS Oils soared 7.90 per cent to Rs 42.90 on the BSE. KS Oils closed at Rs 42.45, up 7.88 per cent from the previous close.

“The acquisition is a part of our strategy to have a manufacturing presence in one of our key markets of East India,” KS Oils Managing Director Sanjay Agarwal said.

The Haldia Port refinery of Kolkata-based Ambo Agro Products has a refining capacity of 500 metric tonnes per day.

With this new plant in West Bengal, the company’s refining capacity would mark the company’s entry into the imported edible oil segment, the company added.

“The refinery would produce refined oil under the current brand name of KS Refined and KS Gold Refined for consumers in North East, West Bengal, Orissa, Bihar, Jharkhand and Uttar Pradesh,” it said.

“This refinery will facilitate logistics efficiencies and significantly collapse the time to market for our consumers in East India,” Agarwal added.

For the financial year ended March 2008, the company reported a net profit of Rs 120 crore, while the turnover was at Rs 2,040 crore.

source: BusinessStandard

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