Business IdeasApex lines up Rs 150 cr for its food division
Apex Agro Food Products Private Limited, a subsidiary of Apex Encon Projects, would spend Rs 150 crore over the next 4-5 years for setting up food processing units, cold storage plants and other infrastructure across the country.
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The company is setting up a food processing unit at Saluru in Srikakulam district. The unit will have a 15,000- tonne capacity cold storage plant to be built with an outlay of Rs 25 crore and will commence operations by next March, he said.
Among others, Apex Agro has bought two old units – one each at Hyderabad and Ahmadnagar in Maharashtra. The company plans to spend Rs 40-50 crore on both these units.
It is also proposing to set up nearly 60 agricultural products collection centres across the country for its proposed food processing units. “We already have 600 acres and are acquiring over 2,000 acres for contract farming. We are tying up with farmers and will provide technical, infrastructure and financial support to them for cultivating fruits and vegetables,” he said.
Rao said the company would also set up an onion irradiation plant in Nashik for process and export of onions.
The food division is likely to contribute Rs 30 crore to the turnover during the current fiscal. On the whole, Apex Encon is targeting a turnover of Rs 500 crore and a net profit of Rs 100 crore. Last fiscal, the company achieved a net profit of Rs 52 crore on a turnover of Rs 275 crore.