Indian food group Himalya International plans to invest INR11bn (US$23.2m) to set up a functional food facility to produce almond products, cereal bars and meal replacement bars.
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According to chairman Sh. Manmohan Malik, the facility will be located on 32 acres of land acquired by the company in Behrod, Rajasthan, about 80 miles from New Deli.
By 2012, the new project is expected to generate annual sales of INR25bn and gross profits of INR5bn.
The plant will have the capacity to produce 400,000 nutrition bars and 20,000kg of almond products each day and will employ 800 people.
Himalya is aiming for the facility to produce “zero waste” by recycling all by-products.
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By GlobalDataThe project will be financed through a US$6m loan from EXIM bank USA, at a rate of 4.37% interest. Additional funds of INR4bn will be obtained by raising equity, the company said in a filing with the Bombay stock exchange. In addition, the company will require working capital of INR1bn.
Malik said that the investment was aimed to capitalise on India’s growing middle class – with more than 300m people expected to fall into this category by 2012.
“India will become one of the major consuming markets by the next decade and the company wants to target this segment of society through this project,” Malik said.
