Publicly listed Emerald Oil Industries, along with Minori Bangladesh Ltd, has signed an agreement with Jamuna Edible Oil to increase the production of rice bran oil.
Under the agreement, Emerald Oil will refine crude oil at the Jamuna Edible Oil plant to produce oil. Half of the production will be exported to Japan.
Emerald Oil will be able to process 800 tonnes of rice husk per day. The expected daily oil production will be 160 tonnes. Minori will provide working capital and use the Jamuna Oil plant.
The tripartite agreement was completed at Hotel Regency in the capital on Sunday. Md Afzal Hossain, managing director of Emerald Oil, Miya Mamun, the young entrepreneur on behalf of Minori Bangladesh Ltd, and Lutfor Rahman, managing director of Jamuna Edible Oil, signed the agreement on behalf of their respective organisations.
Emerald Oil officials said the company's average annual revenue will increase by more than Tk900 crore.
Afzal Hossain, managing director of Emerald Oil, said, "Our production capacity will increase. We and Jamuna Edible Oil will be able to produce over 600 tonnes of rice bran oil per day. This will take our annual turnover to Tk1,000 crore. Emerald Oil is expected to make a profit of over Tk30 crore a year."
Minori Bangladesh Managing Director Mia Mamun said all three companies will be able to make a profit.
"As paddy husk is easily available in Rajshahi, we will collect it from the farmers there. This will reduce the presence of free-fatty acids in rice bran oil. As a result, oil exports to Japan will be easier," he added.
Managing Director of Jamuna Edible Oil Md Lutfar Rahman said they lack advanced technology. If they work with Japanese investors, they will get advanced technology. As a result, they can make more profits.
Among others, Emerald Oil Company Secretary Imran Hossain, Chief Accounts Officer Ashraful Islam, Fu-Wang Food Managing Director Md Rafiqul Hasan, Executive Director Sidratul Hasan and Company Secretary Sharif Al Mahmud were present on the occasion.