As part of strategic investment to support agri-business sector, International Finance Corporation (IFC) has committed to invest Rs 130 crore in Srinivasa Farms for supporting its pan-India expansion plan, capacity enhancement and product diversification. The first tranche of Rs 65 crore has already been invested.
The firm is into integrated layer and broiler business which has diversified interests in soya, feed, contract farming, chicken processing and retail. Hy-Line International, the world leader in chicken layer (egg-laying) genetics, has tied up exclusively with Srinivasa Farms in India.
The firm is setting up chicken processing plant near Hyderabad to produce a variety of value-added chicken products for hotels and restaurants and fast food segment.
The group is also putting up a mega food park as part of its diversification plans to provide food processing infrastructure to small and medium enterprises in Andhra Pradesh in a plug and play mode.
India already ranks third in egg production and fourth in broiler production, globally. “Strengthening the agri-business sector is at the heart of India’s development agenda. It is a sector of strategic focus for IFC. Investment in the poultry sector can lead to job creation for low-skilled workers who are entering formal labour force for the first time,” Jun Zhang, IFC country head for India, said.
Apart from fund infusion, IFC will contribute to the partnership by bringing to the table its global expertise in the poultry sector, technical advisory on best operating practices and climate-smart agricultural practices, corporate governance and food safety standards. KPMG was the exclusive financial advisor to the company for the transaction.
“Over the next 2-3 years, we will invest over Rs 300 crore in doubling our capacities. The plan is to pursue a collaborative growth model to expand allied businesses such as retail, processed foods and agri-businesses, besides value added products, “ Suresh Chitturi, vice-chairman, Srinivasa Farms (and also the vice-chairman of International Egg Commission, UK), said.