KF Bio To Invest Rs 12 Crore In Expanding Tissue Culture Lab

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KF Bioplants Pvt Ltd, a 50:50 joint venture between Kumar Properties and Dutch company, Florist de Kwakel, is investing Rs 12 crore for expanding its plant tissue culture laboratory and greenhouse. It is positioning itself as a cost-effective base for growing plants for European companies.

KF exports around 1.6 crore gerbera, lilium and anthurium plants to 25 countries. The company is now getting into supply of potato seeds, bananas, callalillies and orchids for the international market, KF Bioplants managing director Manish Jain. The cost of labour in India is about 10 per cent lower while infrastructure cost is about 25-35 per cent of that in European countries. According to Mr Jain, many European companies are looking at sourcing from India.

KF Bioplants’ 2002-03 turnover was Rs 18 crore of which exports to countries such as Japan, Australia, Holland, South Korea and Israel accounted for Rs 14 crore. KF is also a production house for a number of Dutch companies. The facility in Pune currently has 300 people working in a 20,000 sq.ft laboratory and 50,000 sq.ft greenhouse. The company has till now invested Rs 8 crore in the facility that has the capacity to grow 20 million plants a year. This capacity is set to double with the implementation of the expansion plans. “We are looking at a turnover of Rs 50 crore by 2006-07,” Mr Jain said.