The second plant in Assam belonging to Emami Limited, the flagship company of the diversified Emami Group is the largest plant of the company. It will provide employment to over 1000 people.

Spread over 50,000 square meters of land, the Abhoypur plant has installed capacity to produce 5,400 tones of creams, 1800 tones of lotion and 900 tones of ointment. In the Amigaon plant the company has invested around Rs 23 Crore. Assam plants together will produce 70 percent of the total production of the company.

Abhoypur plant will manufacture 17 crore Boroplus Antiseptic Cream, Fair & Handsome sachets, 11.5 crore ‘dibbis’ of Menthoplus Balm and 3 crore bottles of Boroplus Lotion per annum.

The unit has the capacity for further expansion both in terms of volume and additional products. In the second phase, the unit will be able to produce 41.5 crore sachets of Navratna Oil,, 3.5 crore ‘dibbis’ of Himani Fast Relief, and 2.5 crore bottles of Menthoplus Balm per annum.

The ISO, GMP and TPM certification processes for the new Abhoypur unit in Assam has already begun. The company also wants to diversify in the education sector in Assam and come up with a knowledge city. Guwahati Development Department minister, Himanta Biswa Sarma said, “The company is keen to set up an engineering and medical college and medical institute. The company has sought government help in getting land for this project at a reasonable price. The state government will render all possible help,” he said.

Mr. R.S Agarwal, Joint chairman of the Emami Groups of companies said, “The new unit at Abhoypur is a reflection of our commitment to innovation and investment at a time when the world is facing economic slowdown. The new project also demonstrates our faith and conviction towards the industry friendly environment in Assam,” he said.

Joint Chairman of the Emami group of companies, Mr. R.S Goneka observed, “We decided to come up with the second unit in Assam as we found the state’s business climate congenial for further investments. The new unit will go a long way in catering to the growing demand for our products on a Pan-India basis in a cost effective manner. We enjoy a special involvement with Assam as Emami was the first company to obtain license from the state government for manufacturing cosmetic and ayurvedic products,” he said.

Last year, Finance ministry had restricted the benefits of excise duty refund under Northeast Industrial and Investment Promotion Policy (NIIPP) from 100 exemptions to product based companies. Companies like Emami had registered their protest and were holding up their future expansion plans in the region.

Mr. Goneka stated that for providing stimulus to industries based on Ayurvedic products there is an urgent need to lower the VAT on Ayurvedic products in Assam from the existing 12 percent to 4 percent like other states.

According to him withdrawal of transport subsidy and the entry tax on raw materials are some other issues which require attention and intervention of the state government. With Emami sourcing most of its raw materials from outside Assam, the prevalence of Entry Tax affects the balance sheet of the company.

Mr. Gogoi contested that Assam is the safest investment destination and added that he will take up the matter of subsidy roll back and excise refund with the Prime Minister, Manmohan Singh. He also assured that the state would look into the matter of VAT and entry tax.

He has invited the company to also set up a unit to produce medicinal products as medicinal plants are in abundance in Assam. “All the raw materials that are required to manufacture medicinal products are available in Assam. It would therefore be cost effective for the company as well as give a fillip to our farmers,” said Gogoi.

The Chief Minister said the Government is trying to augment the power production, vital for the industrial development of the State. “As industry runs on power we are trying to improve the power scenario.”Despite insurgency, Assam is on a fast pace of progress and prosperity. Since day one our Government’s sole mantra is if development takes place, peace will follow suit. The result is there for everyone to see. The GSDP growth rate has gone up from 2 percent to 8 percent. The per capita income has also increased considerably,” he said.

He added, “We want more units to come up in the State. It will help to ease out the unemployment problem. Our Government will extend all possible help and support for those willing to invest in the state in any sector be it industry, health or education.”

Sarma lauded the Emami group for its policy of giving employment opportunities to local youths. “With more youths from my constituency Jalukbari getting jobs in industrial units not a single youth has joined ULFA since 2001,” he said.

Assam industry minister, Pradyut Bordoloi said that there are over Rs 21,600 Crore investment proposals in the pipeline. “There is rush of investors seeking land, we are asking investors to look beyond Guwahati. The business climate has grown in the state,” he said. Emami Group also donated a cheque of Rs 11 lakh to the Chief Minister’s Relief Fund.