Export firm ventures into food processing

Navneet Impex targets Rs 5 cr turnover with a Rs 40 lakh processing unit

Navneet Impex, an Indore-based export firm, is planning to set up a Rs 50 lakh food-processing unit. With this expansion, its turnover will touch Rs 5-crore.

A new firm, Navneet Foods Pvt Ltd, has been created to process commodities like spices, pulses, rice, and wheat, which it currently exports.

This development is good news for the food processing sector in Madhya Pradesh. Despite the promise of a single-window clearance and the much- hyped plans of food parks in Madhya Pradesh few companies have approached the state for investment.

Navneet Impex, a member of Spice Board of India and APEDA, initially plans to produce dehydrated products like onion and garlic flakes.

"We have applied for allocation of land in sector-3 in Pithampur industrial area and we will start construction work, installation of machinery as soon as we get government clearance," Navneet Poddar, promotor of the firm, told Business Standard.

"At present, we are also involved in the stock markets through our firm, Navneet Capital Market Pvt Ltd."

The firm exports pure and hygienically cleaned products natural spices, like coriander seeds, cumin seeds, fenugreek seeds, and processed spices, like crushed chili and crushed coriander, etc. mainly to the Middle East and European nations.

Navneet Foods plans to start production by mid-2006. It is in the process of obtaining a brand name for its processed food items. Initially, the firm has plans to process food items like pulses, rice and dehydrated form of onion and garlic. Later, it may enter into frozen food items.

Poor infrastructure facilities at the agri export zones (AEZ) have stalled growth in the food processing sector.

Further bureaucrats and officials of Madhya Pradesh State Agro Industrial Development Corporation are ignorant about facts and data.

"We will think it over," was the official response at a recent seminar on agri business when an exporter demanded transport subsidy since Madhya Pradesh is a land-locked state.

However the previous Congress government had already made provisions for a 50 per cent transport subsidy by tabling a Bill in the state assembly three years back.

Madhya Pradesh is considered the soya bowl of the country and is the third largest produced of wheat""with finest Sharbati and Durum varieties. It has more than 77 lakh farmers.