Agri and food processing major Keventer Agro, part of the Rs 1800 crore diversified Keventer Group from Bengal, has put plans of a food processing plant at Sanand on hold for now, as it has recently diverted the investment into setting up a food park in Bihar, besides mulling expansion in the dairy segment.
"We are not coming up with the food processing plant at Sanand at the moment. We, however, will keep the land with us for future projects," informed Mahendra Jalan, chairman of Keventer Group. The company had purchased close to 30 acres of land near the Tata Motors plant at Sanand, around 30 kilometers from Ahmedabad.
Keventer Agro planned to set up a Rs 75 crore plant at Sanand that would process mushrooms, sesame seeds and oil, peanuts among others. The company was eying a turnover of Rs 200 crore from the plant annually. It had signed a memorandum of understanding with the state government during the Vibrant Gujarat Investors Summit of 2009, and it purchased the land soon after.
Commenting on the plans to shelve the plant for now, Jalan said, "Business is about profitability. We are already setting up a Rs 200 crore food park in Bihar in association with Future Group.We are also stepping up our investment at the Alwar food park. So, for the moment, we are not working on the Gujarat plant and keeping it on hold."
The company said last week that it is developing a Rs 200 crore food park in Bhagalpur district of Bihar together with Future Group. Around 65 per cent of the investment will be from Keventer Agro, while the remaining 35 per cent will come from Future Group. Nearly 125 acres of land for the food park has already been acquired and work will commence in the next 30 days, the company said.
Keventer had earlier taken up space at the 186 acre Agro Food Park developed by the Rajasthan State Industrial Development and Investment Corporation (RIICO) adjacent to the Matsya industrial area, 15 kilometer from Alwar, in the National Capital Region. Jalan did not give out details about the investments at Alwar.
Meanwhile, the Group is also planning to acquire an outfit in the dairy sector to strengthen its presence in the segment, especially in northern India. It has identified three potential targets as well and hopes to finalise a deal within the end of this year. Keventer has outlined close to Rs 1200 crore for expansion in the food and dairy segment.
Established in 1986, Keventer Agro started off with a franchise agreement with the food and beverage giant Parle to manufacture, package, distribute and market its well-known brand 'Frooti'. The association has now been extended to include 'Appy' , 'Appy Fizz' apple drinks and Bailey packaged drinking water.
