A new Nashik factory planned for the international spice markets
Mumbai-headquartered Foods & Inns Limited (FIL), with an international warehouse in the Netherlands and a global footprint, aims to grow sales at a CAGR of 15% for six years over the base year of FY’19-20 and win production-linked incentives (PLI) of between Rs.109.3 crore and Rs.147.22 crore out of the Government’s Rs.10,000 crore PLI outlawed for the Food Processing Industry.
“We can get incentives between Rs.109.3 crore to Rs.147.22 crore over a period of 6 years if we grow our sales at a CAGR of 15% over the base year of FY’19-20,” CFO Anand Krishnan said on 27 Dec 2021. 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.
“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,” he elaborated as the food processing company was selected for PLI scheme.
“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 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”.
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,” said Krishnan.
FIL Chairman Bhupendra Dalal added, “We are delighted to have been chosen for the PLI scheme for Food Processing Industries. 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.”
With factories in factories in Chittoor, Valsad, Sinnar and Gonde (Nashik), FIL is 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 FIL, 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. fiinews.com
