The Hindu Business Line : Candico unveils big plan to tap S. African market

THE Rs 125-crore Candico on Thursday announced the acquisition of a plant in Tanzania and unveiled its plans to set up a major plant in Johannesburg at an investment of $5 million, as part of company strategy to enter the global market.

"We have invested $1 million in the Tanzania plant and upgraded its capacity to 3,900 tonnes from 1,800 tonnes per annum. The Johannesburg plant, to be set up within a year, will cater to seven countries in the South African region," said Mr Karan Gupta, Executive Director, Candico (I) Ltd, while announcing the company's expansion strategy.

The Rs 125-crore company expects to generate 50 per cent revenue from its overseas projects in the next five years, he said, adding that Candico is scouting for joint venture partners in North and West Africa.

``Our strategy in the first phase of expansion is third world specific and since the MNC penetration in these regions is very low, we can steadily gain a firm foothold in these markets before moving further,'' Mr Gupta said.

Candico is also chalking out plans for distribution agreements in South Asia and West Asia. ``These markets are flooded with Pakistani and South East Asian products and we have shortlisted companies there to strike agreements with. Our first container should leave for West Asia by the end of this fiscal,'' he added.