GEF India eyes Rs 12,000 crore revenue on sunflower oil push

Bengaluru: Gemini Edibles & Fats India Ltd (GEF India) expects to close the current financial year with a 9 per cent growth in revenue at Rs 12,000 crore, as against Rs 11,000 crore last year, driven largely by strong performance of its sunflower oil business under the ‘Freedom’ brand, along with steady expansion into new markets and capacity scaling.

GEF’s flagship product, Freedom Refined Sunflower Oil, leads the Indian market with a 25 per cent share. India’s annual sunflower oil demand is around 24-28 lakh tonnes, or about 2 lakh tonnes a month. Freedom sells roughly 45,000-50,000 tonnes monthly, produced across three facilities — two in Kakinada and one in Krishnapatnam — in Andhra Pradesh.

Explaining the regional dynamics, Freedom Healthy Cooking Oils Senior Vice-President (Sales & Marketing) P Chandra Shekhara Reddy said sunflower oil enjoys deeper penetration in southern markets such as Karnataka, Andhra Pradesh, Odisha, and Tamil Nadu. He attributed this to its light colour, balanced fat profile, and neutral aroma, which do not interfere with the taste of food.

“Two out of three homes in the South use sunflower oil, while in the North, its usage is largely limited to urban pockets,” he said, adding that this has helped Freedom steadily emerge as the market leader.

Currently, Freedom Refined Sunflower Oil commands a 65 per cent market share in Odisha, 60 per cent in Andhra Pradesh, 45 per cent in Telangana, and 10 per cent in Karnataka. The brand entered Tamil Nadu last year, and also recorded modest sales in Delhi-NCR, Kolkata, and parts of Chhattisgarh and Maharashtra.

Reddy noted that India imports nearly two-thirds of its edible oil requirements, limiting export opportunities. “However, there is demand for our brand overseas, and we sell in markets such as Singapore, Malaysia, and Sri Lanka,” he said.

GEF India refines over 3,450 tonnes of edible oil daily across its three facilities. Emphasising the company’s cost-focused approach, Reddy said GEF prefers scaling up existing plants rather than setting up multiple new ones. “As a low-margin business, cost control is critical. Our philosophy is to build large plants at fewer locations to manage expenditure and ensure quality,” he explained.

The recent expansion of the Krishnapatnam facility has helped the company achieve a combined capacity for sunflower oil of over 2,000 tonnes per day across both locations, with further expansion under consideration.

Beyond sunflower oil, Freedom’s portfolio includes groundnut, rice bran, mustard, and palmolein oils. However, sunflower oil contributes nearly 95 per cent of revenue from consumer brands. The company directly services around 1.3 lakh outlets and reaches another 2.5 lakh indirectly.

GEF operates through three revenue models — consumer brands, food industry supply, and loose oils. Packaged consumer brands account for about 60 per cent of revenue, while the food industry segment supplies fats to biscuit, bread, chocolate, ice cream, and snack manufacturers.

Recently, GEF acquired a 70 per cent stake in Coimbatore-based Sree Annapurna Foods for Rs 70 crore in an all-cash deal, forming a joint venture — GEF Foods India Pvt Ltd. The brand, earlier limited to Tamil Nadu, is set to expand into Andhra Pradesh and Karnataka in the coming months.