PepsiCo to run Punjab Agro's Hoshiarpur plant

The Board of Directors of Punjab Agro Juices Ltd (PAJL) has accepted PepsiCo India Holdings (P) Ltd's offer for running the state-of-the-art Hoshiarpur plant on job for processing kinnows, tomatoes and other horticulture products.

A formal agreement to this effect was signed on Wednesday by representatives of PepsiCo India and PAJL in the presence of Punjab Chief Minister Prakash Singh Badal.

Also, PepsiCo officials assured the chief minister that they will finalise the kinnow procurement plans by first week of December, and start procurement of kinnow across Punjab by the third or fourth week of December.

It will also initiate contract farming arrangement for tomatoes and other crops with the farmers of the state soon.

The produce from this facility would be used by PepsiCo in their Tropicana brand of juices and juice drinks and will help them to expand their customer base.

It is worth noting that the state-of-the-art plant having processing capacity of 400 metric tonnes per day has been set up by the Punjab government to provide available and alternative market channel to the kinnow growers and other farmers cultivating horticultural crops to cushion them against fluctuating market prices.

Further, the trial production of the plant undertaken in May 2007 was very successful and the state government in keeping with the spirit of public-private partnership has awarded the task to a private sector partner on job work basis.

Trials have already been carried out with kinnow, mosambi, tomatoes, mangoes, melons and strawberries.