As part of strategic investment to support India’s agribusiness sector, International Finance Corporation (IFC), a member of the World Bank Group, has committed to invest Rs 1,300 million ($18.75 million) in Srinivasa Farms. It will also partner with the Company in its pursuit to expand pan India with capacity enhancement and product diversification. The first tranche of Rs 650 million ($9.37 million) has already been invested.
Srinivasa Group has been in business ever since 1965 when Jagapati Rao Chitturi (Chairman) forayed into poultry business in Hyderabad. The Company is a leader in the integrated layer and broiler business which has diversified interests in soya, feed, contract farming, chicken processing and retail.
The company has also set up a state-of-the-art 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.
The poultry sector in India reportedly has a market value of $16.8 billion. Even though India’s per capita consumption of eggs and chicken has grown in the last five years, it is expected to grow further at 7-10% per annum. India already ranks 3rd in egg production and 4th in broiler production, globally.
“Strengthening the agribusiness 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 labor force for the first time. Srinivasa’s successful expansion will create jobs, improve rural logistics, and help create a market linkage for small farmers,” said Jun Zhang, IFC Country Head in India.
Apart from funds 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. IFC’s investment will help roll out the Company’s network to new areas and expand farmer reach.
“Over the next 2-3 years we will invest over INR 3000 mn 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. Our project expansion will create many more jobs with best practices in work force management and sustainable development keeping environment in focus,” Suresh Chitturi, Vice Chairman and Managing Director of Srinivasa Farms said in a statement.