IFFCO partners with Spanish firm to enter food processing sector
Published: Aug 10, 2018
By TIOLCORPLAWS News Service
NEW DELHI, AUG 10, 2018: The Fertiliser major IFFCO today announced joint venture with Spain's Congelados De Navarra to set up a food processing plant at Ludhiana in Punjab with an investment of Rs 325 cr. With this joint venture, co-operative IFFCO would foray into food processing sector.
Congelados De Navarra is a USD 220 mn company that has pioneered the individually quick frozen (IQF) technology. It is into processing of vegetables, fruits, herbs and ready-made pre-cooked dishes. In the JV, IFFCO would have 30 % stake while Congelados De Navarra would have the remaining 70 % stake.
The joint venture company would invest 40 mn Euros (about Rs 325 cr) to set up a greenfield food processing unit. The foundation stone of this plant would be laid in December and work would be completed in 18 months. The proposed plant would source produce like potatoes, peas and cauliflower from farmers and then process them for sale in domestic and exports market.
The IFFCO's MD said it was a logical step for the co-operative to get into the food processing business for the benefit of farmers and the same would contribute in the government's goal to double farmers income by 2022. According to the IFFCO, the new facility would generate 400 direct and 5,000 indirect local jobs in Punjab.
A memorandum of understanding had been signed between Rajat Agarwal, CEO, Punjab Bureau of Industrial Promotion, Rakesh Kapur, Joint MD, IFFCO and Berito Jimmez, Director General, Congelados De Navarra of Spain for this project. The pre-feasibility study for the project by Congelados De Navarra had already been completed.