Ashco to run food testing lab on revenue share

Ashco Industries has entered into public-private partnership agreement with Andhra Pradesh State Agro Industries Development Corporation (APAGROS) to operate a food testing lab on revenue sharing basis. The agreement is for 10 years, and Ashco will share 20% revenue with APAGROS.

As per the agreement, APAGROS will undertake the responsibility of establishing the lab with all the required equipments and accessories. APAGROS has already invested Rs 5.75 crore for setting up the lab, and will improve the facilities through own or government funding.

Ashco has taken the responsibility of running and maintaining the lab as required by various laws/accrediting institutions/cGMP requirements. In addition, Ashco will generate business for the lab by marketing it to various industries/departments. The lab is expected to be fully functional from January 2008.