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Avigna Group to table business plan for Food Terminal Market

Wednesday, 16 Jun 2021
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The Chennai-based Avigna Group, which is into infrastructure business, will present the business plan of its Rs 2,000 crore Food Terminal Market project near Chennai, Tamil Nadu, to the state government.

The previously elected government had given all the permissions for the project but due to elections the company could not start operations.

The project has an opportunity to create a turnover of around Rs 35,000 crore and generate employment for around 10,000 people.

The company is also putting up a similar project in Madhya Pradesh. It will be first-of-its-kind project in India in over 10 million and 26 million sq ft in Tamil Nadu and Madhya Pradesh, respectively.

The project is conceptualised with the aim of building a place for national, international trade, with a yard and a dry port, hospitals and budget hotels for farmers with a plan to introduce a day pass so that farmers can bring even their families along.

The project will be financed with 40 percent equity; 60 percent debt with part of the equity coming from Foreign Direct Investment. Fruit and vegetables, sea food, dairy & meat, grains and organic produce are some of the sectors to be covered in the park.

The market in Chennai will have 12 lakh tpa handling capacity with centralised processing facilities, primary processing centres and collection centres along with multi temperature cold storage; tropical fruits ripening chambers; meat processing; food processing; ice chamber and wholesale market.

The business model of the market will be leasing and collection of user fee, third party logistics, express deliveries (Farm to Park), exports, facility management and asset management.

The major stakeholders in the project will be farmer-producer organisations, wholesalers, MSME food companies, large food industries, big retailers, large e-com players and educational and research institutions (agriculture and fisheries universities).

Wastage will be reduced from the present level of 30-33 percent to three-five percent in the overall process. The expected forex earnings from exports are expected to be Rs 5,000 crore.


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