INDIA – International Finance Corporation (IFC) plans to make an equity investment of US$23 million (Rs 158 crore) in Srinivasa Farms Pvt. Ltd to help the Hyderabad-based poultry company expand its operations.
According to VCircle, the funding from IFC will help the company to expand its layer, broiler and breeding operations by setting up additional farms and hatcheries.
It added that the company will expand its feed mills and add soya refineries, set up a food park and set up chicken and egg processing businesses, the World Bank’s private-sector investment said.
Srinivasa Farms was founded by chairman Jagapati Rao Chitturi in 1965, and the Chitturi family collectively owns about 80.04% of the company, an IFC disclosure showed.
The company operates an integrated layer and broiler breeding business and has presence in soya, feed, layer and broiler breeding and contract farming.
IFC said the company’s total expansion project cost is estimated at US$83 million and likely to create over 5,000 jobs.
The World Bank arm said its own global expertise in the poultry sector, technical advice on best operating practices and improvement of food safety standards will help Srinivasa Farms grow its operations.
Globally, IFC has invested in some other poultry companies.
In 2013, it had provided a convertible loan of US$25 million to poultry producer Country Bird for its expansion in Africa.
In 2014, IFC had invested in Nepalese feed manufacturer Probiotech Industries for sourcing value-added products like soy flour, nuggets and refined oil.
In 2003, IFC had loaned US$30 million to Ukrainian poultry firm MHP to fund investments in infrastructure required to introduce chilled poultry distribution.
In recent years, it has also invested in Bangladesh’s poultry farm businesses.