14/06/2008 (The Star Online) New Delhi - With crude palm oil (CPO) price hitting a record, leading Malaysian companies are stepping up overseas ventures.

The latest is MM Vitaoils Sdn Bhd, which is considering a hefty venture in India.

The edible oil specialist said it was prepared to invest RM163mil to take its downstream activities to India, which is now emerging as a major edible oil consumer in the world.

“We are planning to duplicate our successful downstream activities in palm oil industries in India. It will involve an estimated US$50mil,” Vitaoils general manager (operations) Dina Talib told the Press Trust of India.

“Having our own CPO will result in us building our refinery as well in India,” Dina said.

Besides buying an edible oil refinery in India, she said the company would consider a joint venture with a local partner for its India plans.

India is a leading buyer of CPO from Malaysia, with about 500,000 tonnes imported annually, largely for its own downstream activities.

CPO prices are hovering at about RM3,500 per tonne in the global market and Malaysia is second largest palm oil exporter in the world, with 15.82 million tonnes last year.

With its expansion, Vitaoils will join the list of leading Malaysian plantation companies that are slowly breaking into the India market and subsequently looking at the populous South Asian region, with nearly 1.3 billion people.

The Shah Alam-based Vitaoils, with over 20 brand names under its belt, mainly for cooking oil, vegetable ghee and margarine, has expanded its export base to West Asia, Europe and Africa. –Bernama-