The Hindu Business Line : Private cos eye N-E to set up production units

On the cards
Ten cos interested in setting up biz in the region
Keventer Agro, Fila Rozil Exports, Trinity Oilseeds, Godrej Agrovet and ITC among those keen to set up shop

New Delhi , Oct. 27

Several companies are reportedly showing interest in the seven north-eastern states to not only set up production facilities but also tie up with farmers for cooperative farming and food processing, as an expanded arm to their respective businesses.

Of the over 80 private companies that had participated in the North-Eastern Agri Expo held in Nagaland, organised by the Confederation of Indian Industry during March this year, almost 10 have shown serious interest in setting up businesses in the region. Amongst these 10 are companies such as Keventer Agro, Fila Rozil Exports, Trinity Oilseeds, Godrej Agrovet and ITC which has chalked out a definite plan of action.

Milk, ice cream plant

"We are looking at setting up a milk and ice cream plant in Guwahati, with an investment of about Rs 50 crore," said Mr M. K. Jalan, Chairman, Keventer Agro, a food processing and beverage company. Mr Jalan said that the company's plans are in the final stages of approval and that the proposal has been sent to the respective State Government for its assent, which is expected soon. The company is looking at doing business worth Rs 200 crore from the new plant in Guwahati as soon as it starts rolling, Mr Jalan told Business Line.

Though, Godrej Agrovet Ltd, a major player in the rural retailing scene, is already present in the region with livestock feed, agricultural input and oil palm products, it is looking at further expanding its business there. "Livestock feed as a segment holds immense potential for expansion in the northeast region, and we are planning to set up a production plant for livestock feed in Assam and Siliguri," said Mr A. R. Subbarao, Executive Vice-President, Godrej Agrovet Ltd. The company is looking at investing almost Rs 4-5 crore to set up the livestock feed production unit that is expected to become functional within six to eight months.

Cooperative farming

Meanwhile, Mr Firoz Poonawalla, Managing Director, Fila Rozil Exports Ltd, exporters of flower plants and long stem roses said, "We are planning to begin cooperative farming of flower plants across all the seven north-eastern States to export to European countries like Holland and Denmark." The company, which had a turnover of Rs 5 crore in 2005-06 and sources 75 per cent of its turnover from flower plant exports, is planning to achieve an additional Rs 5 crore in turnover as soon as it starts its operations in the area.

Trinity Oilseeds, producer and processors of oilseeds, is also planning to set up a production and processing unit for oilseeds and food processing in Nagaland. Mr Asher Dominic Yourey, Chief Executive Officer, Trinity Oilseeds, said, "We want to set up an oilseed production and processing facility as well as a food processing unit for fruits like pineapple in Nagaland." The company is still seeking the State Government's cooperation.

`Government slow'

However, in spite of all the interest being shown by the companies, they seem to be unhappy with the Government's level of cooperation. Mr Yourey said, "We had submitted our proposal to the Government of Nagaland in May and still haven't received any form of confirmation. Though we are extremely interested in setting up production facilities in the State, nothing concrete has come out of the discussions with the Government."

Meanwhile, Mr Jalan said, "Though our proposal is in the last stages of approval, the Government has been very slow.

"We have been trying to work out the details to set up the plant for over a year now."

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