ITC plans Rs 1000cr state food foray with 5 units - The Times of India
May 15, 2012
After almost a decade, ITC, the biggest corporate house in the east and one of the top business conglomerates in India, is betting big on Bengal. The over 22,000-crore tobacco-to-hospitality giant plans to set up five manufacturing facilities for its foods business in the state.
The combined investment for these facilities would be around 1,000 crore, the biggest by the corporate giant in the state in recent times.
If it materializes, say industry experts, this could set the pace for industrialization in Bengal once again after the Singur setback.
Kurush Grant, the executive director of ITC, told TOI that the new FMCG division of the company had started the process of setting up two food units of its own. Besides, it is in talks with a few partners for three contract manufacturing facilities for different food items.
"We shall have most of the units within 50-60 sqkm of Kolkata. Bengal is an ideal place for investment in the foods business. It has most of the raw materials as well as goods market. This is the entry point to the northeast," he added.
According to Grant, ITC already has two contract facilities in Bengal and is planning half-a-dozen more in view of growing demand. He indicated that the company, which has the highest weightage in the sensex along with Reliance Industries, may form joint ventures for the contract manufacturing facilities here. "This (joint venture) is a possibility we are exploring for the contract manufacturing units. This can solve the land problem. We can tie up with those who have land with them," he added.
ITC had in fact expressed interest in setting up a food facility in Bengal way back in 2006 near National Highway No 6, but the plan was deferred because of unavailability of land. The West Bengal Industrial Infrastructure Development Corporation (WBIIDC) had earmarked 40 acres for the project, which was found to be disputed.
Later, WBIIDC allotted 18 acres at Uluberia industrial estate. The Mamata Banerjee government has also offered land to the FMCG giant near Santiniketan.
"We shall start work at Uluberia. Regarding Santiniketan, we are yet to take a call, but the industry department is really cooperating with us," Grant said.
