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Suresh P. Iyengar

Mumbai, Nov. 21 Vikas WSP has moved the Rajasthan Government to acquire 5,000 acre wasteland near Hanumangarh. The land will be made arable utilising water from the Indira Gandhi Canal project.

Mr B.D. Agarwal, Managing Director, Vikas WSP, said the company would be investing Rs 100 crore and it will take at least two years before it gets the necessary approval. The company has sought a subsidy in the form of 50 per cent concession on pricing of the land.

At present, the company grows guar seed on 1,987 acres and has signed up 153 farmers for contract farming in over 2,500 acres. Another 900 acres will come under contract farming with 45 farmers being roped in, he said.

Of late, the demand for organic guar gum — used as the thickening agent on oats and other edible items — is on the rise. “Organic guar gum requires certification from the competent authority and commands a premium of 30 per cent over inorganic guar gum, mainly utilised for industrial purposes,” said Mr Agarwal.

The company intends to produce 8,000 tonnes of organic guarseed. Of the total capacity of 46,200 tonnes of guar gum, about 1,400 tonnes will be organic.

Ruling out any slowdown in demand due to the financial crisis, Mr Agarwal said the company managed to maintain a profit margin of 15 per cent as exports realisation improved with the rupee weakening.

The demand for guar gum from the food sector in the developed countries is growing at 7 to 8 per cent a year, while it is up 14-15 per cent in developing countries. In India, there is a mark up of 10 per cent in demand.

The company will commence production of organic guar gum at its new plant at Sriganganagar in Rajasthan from December. Another production unit of organic guar gum is set to go on stream by FY’10 at Bikaner in Rajasthan with an investment of Rs 202 crore.

A project for producing guar derivatives for the personal care industry and oil and gas sector will be completed in Baroda by FY’11 with an investment of Rs 377 crore.

More Stories on : New Projects | Corporate Farming

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