Gujarat: FDI seeks taste of frozen potato items

With the potential growing for manufacture of frozen potato-based products, Gujarat is poised for an inflow of foreign investments. Several European and American companies are looking to invest in manufacturing facilities for frozen potato-based products or in the food processing equipment sector.

"Foreign players are looking to invest in Gujarat because of the availability of process-variety potatoes. Investment from several European companies alone in the equipment, manufacturing and allied sectors is pegged at 200 million euros (More than Rs 1,500 crore) in Gujarat in the next two years," said Paul Oosterlaken, director, Kiremko, a Dutch food processing equipment manufacturing company.
Gujarat is already the largest producer and exporter of frozen potato-based products in India, particularly french fries. With easy availability of processing variety of potato in the state, several domestic companies are growing and expanding, say industry stakeholders.
"In the food processing equipment sector, we are looking to invest roughly 35 million euros in the coming year and a half. Foreign companies are looking to invest in Gujarat, because it may be easily used as a production hub and supplier for processed potato products," Oosterlaken further said.
"Kiremko is also working to install flake manufacturing equipment in units at Mehsana, Vadnagar and Visnagar," said a senior company executive.
Industry sources revealed that other firms are also eyeing investments in the state. "McCain is already an established player in the state. That apart, an American company is also eyeing investments in the state, whose representatives recently visited the state," said a well-placed source.
"Gujarat is an ideal location for cultivation of processing potatoes, it is likely to attract more investments in the sector. There is a rising demand for frozen potato-based products globally. Against the global market size of 15 million metric tonne for frozen potato-based products, Indian exports are barely scratching the surface," said Haresh Karamchandani, CEO, HyFun Foods, which manufactures frozen potato food products at Mehsana.