Fertiliser major IFFCO has announced joint venture with Spain’s Congelados De Navarra to set up a food processing plant at Ludhiana in Punjab with an investment of Rs 325 crore. With this joint venture, co-operative IFFCO will foray into food processing sector.
According to a PTI report: Congelados De Navarra is a US $220 million company that has pioneered the individually quick frozen (IQF) technology. It is into processing of vegetables, fruits, herbs and ready-made pre-cooked dishes.
“We have formed a JV with Congelados De Navarra to set up a plant in Ludhiana. We have already identified 40-acre land for this purpose,” IFFCO’s MD US Awasthi told PTI.
In the JV, IFFCO will have 30 percent stake while Congelados De Navarra will have the remaining 70 percent stake, he added.
“The joint venture company will invest 40 million Euros (about Rs 325 crore) to set up a greenfield food processing unit. The foundation stone of this plant would be laid in December and work would be completed in 18 months,” Awasthi was further quoted by PTI as saying.
The IFFCO’s MD said it was a logical step for the co-operative to get into the food processing business for the benefit of farmers.
This would contribute in the government’s goal to double farmers income by 2022, he added.
“At IFFCO, we have always taken steps to enhance the life and income of farmers. Fertilisers, insurance, agri-chemicals, farm forestry, agri-retail, rural telecom, farmers training to now food processing,” Awasthi told PTI.