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.
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