IFC invests Rs 130 crores in Srinivasa Farms

Hyderabad: Srinivasa Farms Private Limited on Thursday said it has received a commitment of Rs 130 crore investment from International Finance Corporation (IFC), a member of the World Bank Group.

The investment stretched for a period of two to three years will be utilised to increase its production capacity and expand its allied businesses such as retail, processed foods and agri-businesses.

While Srinivasa Farms has already received the first tranche of Rs 65 crore from IFC, it expects the second tranche to flow in by 2020.

With these investments, IFC has picked 20 per cent stake in SFPL.

"Over the next two to three years Srinivasa Farms will invest over Rs 300 crore in doubling 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," Suresh Chitturi, Vice Chairman & MD of Srinivasa Farms, told reporters here.

While part of the investment is supported by the World Bank member, the poultry brand through internal accruals will pool in funds for the Rs 300 crore expansion plan.

In the next four years, Srinivasa Farms will triple its production of layer and broiler chicken from its current capacity of three and half crore. Moreover, they plan to increase their manpower from 2,500 employees to a total of 5,000 in the same period.

And, their food park in Andhra Pradesh, which aims to provide food processing infrastructure to small and medium enterprises is expected to be operational in 2020.

The MD further said, "the company's target is to achieve 300 per cent growth over the next three to four years. IFC's investment will help the company roll out its network to new areas."

In a market size of 24 crore layer chicken in India, Srinivasa Farms holds a share of 12 per cent, Chitturi informed.