Companies

Steady flow of enquiries for setting up cold chain projects in South: NAPL

L N Revathy Coimbatore | Updated on January 09, 2018

NAPL, a provider of advisory services for implementation of turnkey projects such as mega food parks, cold chain infrastructure and integrated dairy development, has implemented three of the 42 projects approved by the Ministry of Food Processing Industries during the 11th Five Year Plan.

Of the 42, only seven-eight projects are complete till date and we have implemented three to four of these, A. P. Sinha, co-founder, NAPL Advisors, told BusinessLine.

He said NAPL has helped implement three projects including the Indus Mega Food Park in Madhya Pradesh, the International Mega Food Park in Punjab and Jharkhand Mega Food Park on the outskirts of Ranchi.

These projects are operational, while the fourth in Gujarat is slated for inauguration later this year.

“We are providing turnkey consultation for five mega food parks in the country and five-six integrated cold chain infrastructure projects, including ABT Dairy in Pollachi, promoted by the Sakthi Group of companies,” he said.

Sharing a snapshot of the food parks, Ritwik Bahuguna, Director, NAPL, said the Indus Food Park, located in Khargone district, Madhya Pradesh, was promoted by Vasistha Holdings and Ananda Foods. It is spread over 84 acres. Apart from facilities such as cold storage, a packaging line and laboratory, the project has four primary processing centres within a radius of 150 km with basic storage, processing and packaging infrastructure. The promoters have earmarked 35 acres for leasing to processing units. Almost all the facilities are operational. It is to be inaugurated soon, he said, and added that the investment has been close to Rs 130 crore.

The food park in Fazilka district of Punjab was inaugurated three years back (in 2014). Spread across 56 acres, it has been set up at an investment of around Rs 135 crore. This park was promoted by International Farm Fresh Products India Ltd. The promoters have received a grant of Rs 45 crore of the Rs 50 crore (in line with the scheme for setting up of mega food parks) from the MoFPI.

Gen X Venture Capital has promoted the food park project in Jharkhand. This is also spread across 56 acres and the cost has worked out to Rs 115 crore (approximately). This project has been inaugurated, but is slated for completion later this year.

On some of the other projects that NAPL is currently engaged in, Bahuguna said “we are working with four-five entities, mostly in South India.”

On the impact of GST on dairy products, Sinha said, “It would be beneficial for most products except ghee, which is at 18 per cent. Here too, the impact would not be much.”

“The flow of enquiries are aplenty, particularly for investing in the dairy sector. Reports show that the liquid milk industry has grown at 6 per cent in the last three years, while ice cream, frozen dessert/ cheese grew at 15 to 20 per cent.

“Consumption of paneer in the southern states of Tamil Nadu, Kerala, Andhra Pradesh, Telangana and Karnataka has been higher at 20-22 per cent,” he said and added that there is a visible shift towards processed food, mostly due to the changing habits of the people.

Both Indian companies and MNCs are looking to enter and establish their facilities in the food processing sector, he said

Published on August 01, 2017

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