Investors and Partner Relation

Abhay Cotex Private Limited. (ACPL), situated in the Cotton bowl of Western India, is promoted by one of the leading agro-based industrialists of Maharashtra, having an experience of more than 30 years in business operations of cotton trade and production.

It has set-up the country’s largest cotton seed processing unit with a capacity of 1,80,000 tons per annum and has started commercial production from January 2010.

The company has also successfully implemented a Single Stage Cottonseed Extraction (SSCSE) followed by Online Miscella refinery technology having a capacity of 600 MTPD. It has already applied for two patents for this technology and an additional patent is under consideration

Key products manufactured by the company include De-oiled Cake (DOC), Cotton neutral oil, Linters and Cotton Hulls

The company has been awarded “MEGA PROJECT STATUS” by the state government of Maharashtra under which it enjoys a number of incentives

Due to its success story of first unit installed at Jalna, ACPL has installed its Second unit with similar capacity of 1,80,000 tons per annum or 600 TPD (Expandable to 1000 TPD) on cottonseed feed basis at MIDC Nardana Industrial Area, Dhule District Maharashtra India

The process technology installed at Dhule was similar to that of ACPL Jalna designed and functions based on Zero Discharge & high premium quality finished products.

The entire installation of the project was expected to complete in a record time & targeting to go for the commercial production before the financial year 2011-12.

On completion of its commercialization, ACPL will be the unique & largest processing capacity in India / Asia with an annual operating capacity of 3,60,000 metric tons.

Edible Oil India Outlook

The Indian edible oil market is the world’s fourth-largest after the USA, China and Brazil.In Oil year 2008-09, the country could produce only about 8.6 million MT of edible oil, ~50% of the demand had to be met by imports, implying heavy reliance on imports.

The Indian per capita consumption for edible oil is expected to grow from the current consumption levels of ~16kg to ~24 kg’s by 2020 with a conservative CAGR of ~6% & 1% (Historical Growth rates) for Total edible oil consumption and Population respectively.

This growth would translate into an edible oil consumption market of approximately 32 million tons by 2020.

Edible Oil Outlook for India

Restrictions on import of oilseeds make it difficult to match the increasing consumption levels of edible oil unless there is significant increase in the current yield of oilseeds.

The current edible oil needs are met by heavy imports of cheap palm oil. However, with the increased health awareness there is a huge demand of richer and healthier source of edible oil in near future. Cottonseed oil is now seen as one of the promising sources of alternative edible oil.

Cottonseed World Outlook

Of the total world production of oilseed of about 454 MT in FY10/11, Cottonseed production contributes nearly 9.6% of the oilseed produce.

With an annual production of more than 11.5 million MT of cottonseed for FY10/11, India (12-12.5%) is the largest cottonseed producing country in the world followed by China (11-11.5%) and the USA (8.8-9%).

Of the total world production of 43 MT of cottonseed. India’s share of production stands at about 28%.

The Cotton plant has long been known as “Nature’s Food & Fiber plant”. Cottonseed is a by-product of cotton plant and is a very valuable source of food for human consumption, excellent cattle, poultry and fish feed and strategically vital industrial product likes linters.

Cotton seed world outlook

Cottonseed India Outlook

Gujarat, Maharashtra and Andhra Pradesh are the main states which contribute about more than 70% of India’s production. The yield average of cotton (bales) in India is at 465 kg/ha compared to 680 kg/ha average world yield.

The amount of cotton bales produced in India increased from 250 lakh bales in FY08 to 325 lakh bales in FY09 and 295 lakh bales in FY10. This number is expected to increase to 500 lakh bales in the next two years.

Cattle Feed Billion dollar Industry for India

India produces about 16mn MT of protein meal annually, mainly soya bean meal (~39%) and mustard meal (~22%). This represents ~6.2% of world production.

India exports about 4mn MT of protein meal, (25% of its total production) to other countries, such as South Korea, the Middle Eastern countries and the EU. About 80% of these exports are soya bean meal, and India is the fourth-largest meal exporter in the world, with a ~5% market share.

Currently the market is dominated by regional unorganized players and the share organized players in this sector is less than 12% and is dominated by few Indian players.

The cattle feed business is growing by a CAGR of more than 30% as milk producers have started replacing traditional feed with more nutritional DOC having realized the tangible benefits in terms of yield improvements.

Also, there is an increasing trend in diversion of soya-bean meal for human based consumption leading to bigger market share of cottonseed meals for cattle feed in India.

Cottonseed Oil: The Next Alternative Edible Oil

Cottonseed – Ease of Raw material availability

With an annual production of more than 11-11.5 million MT of cottonseed in FY10/11, India is the largest cottonseed producing country in the world next only to China and the USA.

Maharashtra contributes about more than 37% of India’s cottonseed production, of which Marathwada contributes 60%.

Soya v/s Cottonseed – Crushing capacity

For 9 million MT productions of soya bean seed there are more than 500 plants in India, while for cottonseed which averages around 12 million MT has less than 20 plants of sizeable capacity.

ACPL only plant with advanced technology in Asia. The scenario is expected to undergo a sea change once a commercially viable technology has been developed.

Capturing the value

There is approximately an estimated loss of over INR 1700 Crores annually due to adoption of traditional processing methods and two stage solvent extraction technology

ACPL’s indigenously developed superior scientific process technology and is poised to take a leap in the cottonseed oil segment in India

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