Mumbai, December 23, 2021 – Foods & Inns Limited, one of the largest Mango processors in India has received approval for production-linked incentives (PLI) as part of the government's efforts to boost local manufacturing as well as exports and to make manufacturing champions out of India. This would enable Foods & Inns, India's second largest processor and exporter of processed fruits and vegetables products, to continue to lead the way in the development of innovative food products utilising cutting-edge technology, with a focus on creating sustainable value chains.
Headquartered in Mumbai, with an international warehouse in the Netherlands and a global footprint, Foods & Inns Limited has ambitions of becoming the largest processor of Fruits & Vegetables based out of India taking advantage of this incentive scheme. Under this scheme, the company has to invest and grow its sales by a minimum of 10% CAGR (With a maximum cap for incentives at 15% CAGR of Sales) to receive the incentives on a yearly basis from FY’21-22 to FY’26-27 with the base year sale being FY’19-20.
Speaking on the development, Mr. Bhupendra Dalal, Chairman, Foods & Inns Ltd. said, “We are delighted to have been chosen for the PLI scheme for Food Processing Industries. We are also thankful to the Government of India and the Ministry of Food Processing Industries for providing such supportive platforms for the domestic food processing industry. We are confident that we will make a significant contribution to the development of a strong ecosystem for the agro-processing sector in India as well as the establishment of our own brands in other countries.
The CFO of the company, Mr. Anand Krishnan commented that “Foods & Inns has established itself as one of India's leading and reliable fruit and vegetable processors, and the government's incentive scheme will help speed up the company's marketing and sales efforts in the B2B and B2C segments. Our company has the vision of becoming the largest Fruits and Vegetable processor in India and this incentive scheme will help us build up capabilities for the same. Our company has planned capex towards installing Tetra Recart facility, doubling our fully utilized Spray Drying facilities, building a new spice factory on our existing land in Nashik to cater to international markets, increasing Cold Storage facilities along with increasing our agro processing capabilities and creating wealth from the waste we produce. All these initiatives are expected to be operational latest by the end of March’23 out of which almost 1/3rd of the capex is already completed. We can get incentives between Rs.109.3crs to Rs.147.22crs over a period of 6 years if we grow our sales at a CAGR of 15% over the base year of FY’19-20. We as a company have a clear roadmap on achieving the PLI based targets and the current year performance provides ample proof of our intent and abilities. We expect the incentives to be a major game changer to the fortunes of the company which will help us become a global agro product processing champion”.
About the scheme:
The Government of India announced a total outlay of Rs. 10,900 crores for the Food Processing Industry under the Production Linked Incentive (PLI) plan, which is overseen by the Ministry of Food Processing Industries. The initiative is based on the government's goal of an AatmaNirbhar Bharat, which aims to improve the country's industrial capacity and exports. The government wants to build global manufacturing champions in India, develop Indian brands abroad, promote non-farm jobs, ensure fair farm produce prices, and boost farmers' income.