VRS Foods to invest Rs 8.8 cr in Gwalior unit

Delhi-based VRS Foods Ltd, makers of the Paras brand dairy products, is going to expand its Madhya Pradesh operations with an investment of Rs 8.80 crore. The company has its unit in Malanpur, Gwalior. The new unit will come up in Ghirongi (Malanpur) Food Park.

The company will increase its capacity in skimmed milk powder by another 27 metric tones, and ghee by another 17 metric tonnes. It started manufacturing 45 metric tonnes of skimmed milk powder and 33 metric tonnes of ghee.

"They have made an investment of Rs 16.32 crore last year in the unit they will make an investment of Rs 8.80 crore in the new unit which may go up to Rs 13 crore," a government source told Business Standard.

The industry minister, Babulal Gaur, also mentioned in the "investment list" about the expansion plan size of VRS Foods yesterday while replying a question in state assembly. The firm has already generated 60 jobs in the existing unit and will generate 40 more jobs through the new unit, he official informed.

VRS has a presence in premium brand in the Indian dairy industry with products like milk, pure ghee and skimmed milk powder (in bulk and consumer pack), dairy whitener, white butter, dematerialized whey powder, casein edible and industrial grade.

"The company is already in milk business for the last 40 years and collects it from villages level collection centers," said an official adding, "the company has demanded an area of 4 hectares for expansion and land has been allotted to them. They are likely to start construction this month."

The food park already has necessary facilities and infrastructure. "As many as nine firms have proposed to set up their plants."

Madhya Pradesh food parks have received a lukewarm response from industries. Except for Boregaon (Chhindwara) and Ghirongi (Gwalior) Food Park, the other food parks have attracted very few companies. Babai and Pipariya (Hoshangabad) food parks have no takers so far. Each food park has been developed with an investment of minimum Rs 4 crore with infrastructure facilities like chilling plant and storage facility.

"The availability of raw material and skilled labour is the main problem with these parks, most of them are located out of main industrial area," a government source said.

The food parks have been set up at Jaggakhedi ( Mandsaur) , Nimrani ( Khargone) , Borgaon (Chhindwara), Maneri (Mandla), Malanpur ( Bhind), Babai and Pipariya (Hoshangabad) at Rs 50 crore.