Emami in Ethiopian Jatropha push

Emami Biotech, a Emami group company, will invest Rs 400 crore over 5-6 years to develop jatropha plantations in Ethiopia. “The Ethiopian government has allotted land and the first phase of commercial plantation has begun,” Aditya Agarwal, director, Emami Group and now also a consul for the Ethiopian government, said.

The land is offered to Emami on a 45-year renewable lease. Emami Biotech has engaged management and engineering consultancy firm Mott McDonald for a feasibility study.

Commercial production has begun on 30,000 acres of land. Emami Biotech is expected to churn out 100,000 tonnes of crude bio-fuel per annum, which will be exported to India for producing bio-diesel at the company’s plant in Haldia, West Bengal.

The first phase of the project would require an investment of Rs 120 crore. The company is in talks with a  few banks including Exim Bank, Bank of Baroda, State Bank of India and Corporation Bank to fund almost 70% of its project cost. Options for individual funding or going in for a consortium are also on the cards.

Agarwal said, “We are negotiating with the banks and institutions and are yet to finalise on this. While the majority of the funding would be through debt, the balance 30% would be funded by Emami Biotech. We may later float an SPV and transfer the assets to it”.