The BSE-listed agri export-oriented company Himalya International on Thursday announced commencement of production at its first unit of food processing plant at Vadnagar in Mehsana district of Gujarat and said all the other units are slated to follow suit in the next four months.

This is India's largest food processing project, the company said.

A delegation of the company led by its Chairman, Mr Manmohan Malik, presented the first pick of 100 per cent vegetarian mushrooms grown at Vadnagar to the Gujarat Chief Minister, Mr Narendra Modi, here, according to a company release.

Mr Malik said that Himalya International's plant has been set up in 18 months with an investment of Rs 130 crore. The plant is spread over 60 acres and provides direct employment to around 2,000 skilled and other workers.

The company will sign an MoU with around 5,000 farmers to grow agricultural produce for the company under contract farming. The project will have two streams of products, viz, fresh-chilled and fresh-frozen products for exports and domestic markets.

The plant will grow and process 10,000 tonnes of mushrooms, 40,000 tons of appetisers and French fries, 50,000 kilolitres of yogurts and cheese and 100 million cans of soups a year.

“We expect to generate revenues of Rs 500 crore by 2014 from the new facility,” Mr Malik said. The new cold chain at the Ahmadabad International Airport will enable the company to export its fresh-chilled products. The availability of fresh mushrooms in Gujarat will be a boon to fight diseases such as diabetes.