Industr

Keventer Agro mulls ₹200-cr. expansion plan

more-in

Company may raise funds via debt

Keventer Agro Ltd., one of the largest food and agriculture companies from eastern India, is planning to invest about ₹200 crore to expand its milk and banana businesses in eastern and northern India, a top executive said.

“We are planning to invest ₹180-200 crore in the next two years, out of which about ₹40-50 crore will go to our dairy business to augment existing capacity,” said Mayank Jalan, CMD, Keventer Agro Ltd.

“We have earmarked ₹80 crore for our banana business. And the balance will go into our Frooti business [Keventer Agro is Parle Agro’s largest franchise for Frooti, Appy and Bailley],” Mr. Jalan said.

The company would raise debt to meet this capital investment plan. “We are very under-leveraged, so we might be looking at debt.”

The company, which has a turnover of more than ₹1,000 crore, sold over 30,000 tonnes of banana last year [March 2018] under the Keventer brand.

“This year, our target is to achieve at least 50,000 tonnes. By 2022, we want to get to 150-180,000 tonnes volume,” he said.

To expand its base, the company is planning to set up banana ripening centres at Patna, Guwahati and in markets in north India.

He said the company will soon expand its value added milk business to Bihar, Jharkhand, Odisha, West Bengal, northeast and Chhattisgarh.

Next Story