Manorama targets FY28 fractionation and refining commissioning

Manorama targets FY28 commissioning of debottlenecked fractionation and added refining capability under a proposed two-to-three-year capital expenditure programme, intended to increase its mix of cocoa butter equivalents, stearin, specialty fats and application-specific formulations. The proposal remains subject to board-recommended modifications.

What is Manorama planning for FY28?

Manorama is planning to commission its major proposed projects in FY28, with fractionation debottlenecking and additional refining capability identified as the first two elements of the programme. The presentation describes the investment as proposed capital expenditure over the next two to three years, rather than providing a capital-cost figure, production-capacity figure or phased commissioning schedule.

The facility layout shown in the presentation identifies Fractionation 1, Fractionation 2, Refinery 1 and Refinery 2, alongside an oil press expeller, solvent unit, tank yard, boiler units and a power station. This layout places the FY28 plans within an integrated manufacturing chain that starts with seed processing and extends to refined oils, specialty fats and packaged products.

How would fractionation and refining change Manorama's product mix?

Manorama says the fractionation debottlenecking and refining addition are intended to increase the contribution from cocoa butter equivalents, or CBEs, stearin, specialty fats and application-specific value-added formulations. Fractionation is presented as the technological capability used to produce premium CBEs and specialty fats, while the refining project is described as part of a forward-integration programme.

The intended mix shift is more specific than a general capacity addition because it names product categories with different end applications. Manorama's Milcoa range includes Milcoa ES cocoa butter equivalent, Milcoa IS cocoa butter improver, Milcoat cocoa butter replacer and Milcospread chocolate and nut spread fat, serving chocolate, compound, fillings and spreads.

The presentation does not disclose current and target volumes, revenue shares or margins for CBEs, stearin or other specialty-fat products. It therefore establishes the direction of the planned product mix, but does not quantify how much the FY28 projects would change Manorama's output or the contribution of each product segment.

What demand supports Manorama's specialty-fats strategy?

Manorama identifies CBE adoption in food and confectionery as a demand driver because CBE is a trans-fat-free vegetable fat designed to be fully compatible with cocoa butter. The presentation says CBEs offer similar physical and chemical properties to cocoa butter and can improve heat and melt stability, a relevant mechanism for chocolate products in tropical markets including India, Southeast Asia and the Middle East.

Regulation is another stated demand factor: manufacturers in the European Union, India and several other markets can use up to 5% CBE in a finished chocolate product while retaining the chocolate label. That 5% threshold links Manorama's planned fractionation output to a permitted use case in finished confectionery, rather than only to bulk-fat supply.

Manorama also connects specialty fats to cosmetics and personal care, naming shea, sal and mango butters for moisturisers, skincare, lip care and premium personal-care formulations. Its research and development work is positioned around application-specific solutions for food, confectionery, cosmetics and personal care, which aligns the proposed premiumisation with several end-use segments rather than chocolate alone.

How will Manorama execute the proposed expansion?

Manorama says execution will rely on research and development-led product innovation and operational efficiency across its integrated value chain. Its Government of India-accredited research centre is described as moving products from bench-scale experimentation to customer-ready formulations, with customer co-creation and customised solutions as two mechanisms for commercialising new specialty-fat applications.

The supply model begins with exotic tree-borne seeds from India and Africa, processes them at the Birkoni plant, manufactures CBEs and exotic specialty fats and butter, and supplies food, chocolate, confectionery and cosmetic companies. In India, the process includes village-level pre-cleaning, deshelling and aggregation of sal seeds; in Africa, Manorama procures shea nuts and shea butters through rural women collectors, cooperatives and its network before shipping material to India.

By-product monetisation is also part of the operating model, with de-oiled cake identified as supporting profitability after seed processing. The manufacturing layout includes a seed warehouse and a de-oiled-cake godown, showing how raw-material handling and by-product storage sit alongside fractionation, refining and packaging operations.

How does global customer access fit the FY28 plan?

Manorama says it plans to expand globally through strategic partnerships and customer access across newer markets as part of the same FY28 growth programme. The presentation reports geographical presence in more than 39 countries across Asia, Europe, the Americas, MENA, Africa and Oceania, with Italy, Brazil, India, Malaysia, the United States, the United Arab Emirates and Japan among the strategic markets listed.

The stated customer base spans food and confectionery groups including Ferrero, Mondelez International, Mars, Nestlé, Barry Callebaut and Fuji Oil, while the personal-care list includes The Body Shop, L'Oréal Paris and Lush. These named segments correspond to the planned product categories: CBEs and other specialty fats for chocolate and confectionery, plus shea, sal and mango ingredients for cosmetic and personal-care formulations.

The presentation does not identify new partnership names, country-specific sales targets or an FY28 export target. Its disclosed plan is to improve customer access in newer markets, while its existing footprint of more than 39 countries supplies the stated platform for that expansion.

What remains uncertain about Manorama's FY28 programme?

Manorama explicitly states that the proposed capital expenditure and FY28 commissioning target are subject to board-recommended modifications. As a result, fractionation debottlenecking, added refining capability and the premiumisation programme are disclosed plans rather than fixed, unconditional completion commitments.

The presentation also leaves several operating measures unresolved, including capital expenditure amount, throughput added by fractionation debottlenecking, refining capacity, project milestones and the expected contribution from CBE, stearin and application-specific formulations. The two-to-three-year proposed investment horizon and FY28 target provide timing, but not a disclosed financial or production baseline against which execution can yet be measured.

Conclusion

Manorama's disclosed growth plan combines manufacturing changes with a move toward higher-value specialty-fat applications. FY28 is the target commissioning point for fractionation debottlenecking and new refining capability, while CBE, stearin, specialty fats and customised formulations are the specified products expected to receive greater emphasis across food, confectionery, cosmetics and personal care.

The next items to watch are any board-recommended modifications to the proposed two-to-three-year capital expenditure programme, plus disclosure of project cost, capacity, commissioning milestones and product-mix impact. Progress on strategic partnerships and access to newer markets would also show how Manorama intends to use its presence in more than 39 countries alongside the planned FY28 facilities.