Basmati rice processor Rei Agro today said it will invest Rs 500 crore over the next one and a half year to set up a new plant and expand the capacity of its existing facility.
In its lone rice processing facility at Bawal Growth Centre in Haryana, Rei Agro's installed capacity currently stands at 10 lakh tonnes per annum. The company plans to nearly double the capacity through the proposed expansions.
"We will spend Rs 300 crore to increase rice processing capacity in our existing plant in Haryana by 5.5 lakh tonnes per annum from 10 lakh tonnes now. The expansion will be over by November this year," Rei Agro Managing Director Sundip Jhunjhunwala told PTI.
The company would also set up a greenfield project next year at Sonepat in Haryana with an investment of Rs 200 crore, he said, adding that the processing capacity in the proposed new plant would be around three lakh tonne a year.
"We have already bought six acres of land at Sonepat and hope to start work on the project next year," he said.
Investment towards capacity expansion would be entirely funded with the proceeds of the company's $105 million Foreign Currency Convertible Bond issued last year.
Rei Agro mainly has presence in the domestic market. Out of its Rs 3,693 crore net sales last fiscal, Rs 666 crore came from exports. Jhunjhunwala expects the share of exports to the company's topline to double in two to three years.
"We currently export to the gulf region. We are exploring opportunities in the European and American markets to boost exports," he said.