The Hindu Business Line : Matrix Group will invest Rs 50 cr in expansion

Hyderabad, Sept. 5 Matrix Group, makers of agri-products, has firmed up plans to invest up to Rs 50 crore in its short-term expansion. The investment is towards establishing three manufacturing units for organic fertilisers.

Tamil Nadu, Uttarakhand and Hyderabad have been identified as locations where the plants, each with a capacity of 1.25 lakh tonnes per annum (tpa), would be put up, according to Mr V. Siva Prasad, the Group’s Chairman & Managing Director.

Each plant would require Rs 10 crore as investment. “We are following the acquisition route and planning a greenfield expansion. By April 2009, we want production out of all these units,” Mr Siva Prasad told newspersons here on Friday.

Investment route

The Rs 40-crore turnover company is in discussion with a Bahrain commercial bank for investment of up to Rs 30 crore through the private equity route.

The balance Rs 20 crore would be raised through bank loans and internal resources, Mr R.R. Pujari, Chief Mentor, said.

The Hyderabad-based company manufactures organic fertilisers in granulated form. It claims that it is cost-effective, eco-friendly and increases crop yields. The technology for the product has been sourced from the National Innovation Foundation (NIF), he said.

The company is into manufacture of pesticides, fertilisers, micro-nutrients and veterinary products. It had facilitated the entry of Cargill Animal Nutrition into the company through a joint venture a couple of years ago to make feed for shrimp. In 2006, it exited the joint venture, Mr Siva Prasad said.

The Group has established a network of 2,000 dealers and has 600 employees.

Chinese tie-up

Matrix Group recently signed a memorandum of understanding with PGGC, a Chinese company, for diversifying into bio-diesel.

As per the MoU, the Chinese company would supply seedlings of the plant-Diascoria, whose tuber yields bio-ethanol and some steroids, as well as its patented process technology.

The project requires 30,000 acres of land. Plans are on to involve large number of farmers, Mr Siva Prasad said, while maintaining that everything was in a preliminary stage.

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