Delhi-based Apex Encon Projects Private Limited, which executes defence projects, is setting up a cold storage and food processing unit at Saluru near Visakhapatnam with an investment of about Rs 20 crore.
“We have 370 acres of land at Saluru where we cultivate vegetables and market them under ‘farmers fresh’ brand,” KSMK Murthy (Murali), director, Apex Encon Projects, told Business Standard.
The company now wants to take up this project in a big way and is, therefore, setting up a food processing and cold storage unit on 9 acres. Of the total investment, the Centre is providing Rs 10 crore as subsidy, while Rs 7 crore would come from financial institutions. The remaining Rs 3 crore would be contributed by promoters, said Murthy.
Apart from 370 acres of own land, the company is planning to take up contact farming on about 2,000 acres and would process the entire agri-products in the proposed processing unit. “Our main activity in the food processing unit will be production of tamarind and tomato paste and cut vegetables. The plant would be ready by the end of 2010,” he said.
Apex Encon Projects is also investing in local companies. It recently acquired a 75 per cent stake in Visakhapatnam-based Lifeline Aqua, which has a 15,000 litre per hour capacity, and two mineral water plants at Visakhapatnam and Hiramandalam in Srikakulam district of AP.
The company also picked up a 70 per cent stake in Vizag-based MNR Enterprises, which manufactures waterproof membranes and other tar-based products. Apex Encon operates a construction chemicals manufacturing unit in Himachal Pradesh and is planning to set up a similar plant in Uttarakhand with an investment of Rs 6-8 crore, he said.
The company expects to register a turnover of over Rs 500 crore during this fiscal on the back of a few major defence project. Last fiscal, it earned a net profit of Rs 54 crore on a turnover of Rs 270 crore.