The Hindu Business Line : Jain Irrigation plans commercial production of tomato pulp this year

Chittoor (Andhra Pradesh), June 25 Jain Irrigation Systems Ltd (JISL) is planning to launch commercial production of tomato pulp by the end of the third quarter of the current financial year.

“Currently, we are undertaking trial production of the product and by December, we should go in for commercial production. Talks are on with major producers such as Kisan, Nestle and others to sell the produce,” Mr Anil Kumar Katariya, President (Marketing), Jain Irrigation Systems, told newspersons on a visit organised by the company to the plant.

According to him, the company sees a strong demand for tomato-based products in the next five years and hence, it was entering the segment.

JISL, in the last one-and-a-half years after the acquisition of the two plants of Parle Bisleri Pvt Ltd located in Chittoor for Rs 12 crore, has invested around Rs 30 crore for upgradation and expansion of the facility.

According to Mr Katariya, during the current fiscal, Rs 15 crore would be invested in additional equipment to manufacture more products from the same raw materials and for upgrading the cold storage capacity.

JISL currently has a processing capacity of 1,700 tonnes a day and the two plants located in Chittoor have an installed capacity of 1,000 tonnes a day. In addition, it has one more unit located in Jalgaon.

Mr Katariya also said that JISL is looking at getting into processing of pomegranate and citrus fruits. “Trial production will start later this year and commercial production would be launched in the 2009-10 financial year,” he added.

Mr Sunil Deshpande, Senior Vice-President of the company, said they are looking at getting into processing citrus fruits because of the large crop grown in the State.

Upbeat on turnover

The company, for the financial year ended March 2008, recorded a turnover of Rs 2,100 crore and during the current financial year, expects it to touch Rs 3,500 crore.

“Out of the total turnover of the company, around 20 per cent (Rs 400 crore) is contributed from the food processing division. This year, it is likely to be between 25 and 30 per cent, around Rs 700 crore, because of new product lines,” he said.

The company exports 60 per cent of its total production to Europe, the US, Japan and West Asian markets.

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