KHS to enter food, non-food segments

KHS India, a subsidiary of Germany-based KHS Group, plans to expand its operations of filling and packaging solutions to food and non-food segments.

Earlier, the company used to focus on soft drinks, water, beer and other beverages.

KHS India is a 60:40 joint venture between KHS Group and Ahmedabad-based Mamata Group of Companies. The company, which runs its only Indian plant in Ahmedabad, is expanding its capacity.

According to Yatindra Sharma, Executive Director, KHS India, the expansion will increase the plant capacity five times.

Unable to quote the exact rise in capacity, Sharma said, "We offer filling and packaging solutions to clients on a customised basis. Hence, it is difficult to quote a certain capacity for the plant. Sometimes, a single order may take us months to fulfill."

The expansion at the existing plant in Ahmedabad will cost around Rs 100 crore, said Valentin Reisgen, CEO, KHS Group.

"We will expand the plant in two phases in which the first phase has been completed. The new plant will cover an area of 110,000 sq mt and will manufacture filling and packaging solutions for soft drinks, water, beer, milk and other beverages. However, it will take us sometime to venture into food and non-food segments," said Reisgen.

Sharma informed that once the plant is inaugurated, the company will approach Amul to offer its Aseptic Technology of packaging for milk and milk products.

Presently, among its clientele are Pepsico, Coca Cola, United Breweries and others. KHS India registered a sales turnover of Rs 70 crore in FY 2005-06, of which Rs 30 crore consisted of exports to countries like Korea, China, Eastern Europe and US.

Sharma also stated that the company's capacity in terms of order book is Rs 100 crore.

Meanwhile, Reisgen shared his plans to set up more plants in China. Presently, the company owns a single plant in China for beer filling and packaging with a turnover of ¤50 million.

"We plan to double up our China plant's turnover by expanding it," said Reisgen.