2 Jan 2010, 0047 hrs IST, MV Ramsurya,
MUMBAI: Indian companies are buying land overseas, mainly in Africa, to grow agricultural products that can be exported to large markets, including India.Companies and investment houses prefer the African route to agriculture as direct investment in this sector in India is fraught with bureaucratic hurdles. Also, land is relatively cheaper in Africa and fertile. Contiguous nature of land — a company can get large tracts contiguous land — are the other main drivers.
According to statistics provided by governments of various countries in east Africa, more than 80 Indian companies have invested about £1.5 billion (about Rs 11,300 crore ) in buying huge plantations in countries in eastern Africa, such as Ethiopia, Kenya, Madagascar, Senegal and Mozambique that will be used to grow foodgrain for the domestic market.
The list of companies that have purchased land in Africa is quite long and includes companies in businesses ranging from agriculture and horticulture to engineering and metals. They include the Kolkata-based Kankaria group (manufacturing and textiles), Kommuri Agrotech (floriculture and horticulture), Surya Electrical (electrical products), Karuturi Agro Processing, AVR Engineering (construction), Nelvo International (minerals), Allied Chemicals, BP Jewellery, KSR Earthmovers.
The land purchase has been done in places like Oromia, Addis Ababa in Ethiopia, Port Sudan, Khartoum and Suwakin in Sudan, and in Nairobi in Kenya.
Rising food prices is one of the main reasons for the rush. Food price inflation rose 19.95% for the week ended December 2 from the previous year, with prices of food products and vegetables reaching record levels due to a combination of hoarding and slow production after the country saw its worst monsoon since 1972.
“The cheap cost of land is the main driver for such a trend,” says Dileep Choksi, a leading tax and accounting consultant, who has been part of several business initiaves in Africa. “While the firm food prices in India and elsewhere are also a reason, the availability of arable land (in Africa) is a major advantage,” he added.
Africa has 807 million hectare of cultivable land, of which just 197 million hectare is currently being cultivated. This demand for food and
agricultural commodities is likely to remain strong, according to a recent statement by global investor Jim Rogers.
Since farmers are not getting loans to expand, once the current cyclical decline in commodities ends, the world would see less supply of commodities.
The interest in agro-commodities reflects the demand seen for mass consumer products. According to JM Trivedi, country head with private equity major Actis — which has a majority equity interest in Nilgiri Dairy Farm — while agriculture is a growth area, investments in related aspects such as dairy would depend on whether the plan is to turn it into a mass consumer product with a brand.
While corporate farming in India is still restricted by slow government approvals, dairy farming is catching on, with KKR, another large global PE major, eyeing investments in the sector. KKR India head Sanjay Nayyar recently told ET that his firm was interested in investing in the Indian dairy sector.
KKR recently invested $150 million in a dairy farm in China and could soon follow it up with a similar investment in India, he added. Baroda-based Vigo Biotech was recently acquired by Anil Products of the Arvind Lalbhai group, in a Rs 75-crore deal, that aims at integrating the dairy operations and increasing the cow count from the current 1,000 to over 5,000 and to diversify into value-added dairy products.
The deal, advised by Transwarranty Finance, is to expand into localised market segments by leveraging on distribution strengths of the starch businesses of Anil Products.
Source
4 comments:
What's the variation in between a cultured pearl as well as a normal pearl. You can opt for a real diamond engagement ring if your budget allows and simply present it as a promise ring, but engagement rings tend to have a scary price tag way into the thousands. I know it may seem as if I'm contradicting the advice
I have already given you, but hear me out.
Take a look at my web page webpage
If only my teenage and young maturity was free of
acne, how different an individual I would be. The most typical antibiotics for cystic
acne are erythromycin, clindamycin, and tetracyclines.
Don't help it become too hot, but don't allow it to go get too cool.
The acidic property of chlorine could inflict damages to sensitive skin,
particularly facial skin.
Have a look at my web-site ... acne treatments reviews
And, really, having acne could be stressful,
particularly when you're a teenager plus your peers leading it out continuously or calling you names. In reality, the relief is temporary because constant or repeated experience chlorine may be harmful. Under the Kiss Organics production from Kiss My Face, the appearance of organic personal care products made from wild-crafted and organic ingredients gained in popularity. The worst portion of all is until this scarring may bother you for more than a couple weeks.
Here is my blog :: sulfur acne products
They are likely to have better deals on high-grade gemstone promise rings, because
their niche is diamond rings. If you guessed that
they broke up before they even stepped foot onto their college campus, you are right.
Celtic bands are popular for both men and women and not
only sell for wedding bands but also couple rings,
promise rings and anniversary bands.
Here is my webpage promise rings tacori ()
Post a Comment