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Karnataka needs aggressive private-public partnership initiatives in food processing sector: Yes Bank EVP
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Tuesday, 08 June, 2010, 08 : 00 AM [IST]
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Nandita Vijay, Bangalore
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Karnataka food processing sector will need to look for private-public partnerships to implement projects. The way forward is to ensure fusion of partnership and investments to maximise the growth opportunities. Such partnerships need to constantly evolve to match the size and scope of new businesses, according to Girish Aivalli, EVP & Country Head, Food & Agribusiness Strategic, Advisory & Research, Yes Bank.
Despite the favourable agriculture development indicators including 10 agro climatic zones, industry-friendly climate and availability of capital new industries in the sector including the Food Parks had not come up as required. “What is lacking is a mechanism to pep up the investor spirit. There is a need for transformational initiatives by the state government like speedy clearances and quick decisions to fast track food processing projects,” Aivalli told F&B News during an interaction.
“Investment together with increased private participation and Foreign Direct Investment (FDI) can change the face of the food industry. Aggressive strategies and forward-looking policies could help bring in partnerships to move up the value chain,” he added.
Innovative entrepreneurs should storm this space with a systematic approach, create a sense of scope and scale to start food projects going by the numerous opportunities. “This is where Yes Bank through its focus on Food & Agribusiness strategic arm has been able to generate around 23 per cent of revenues from this offering. The entry of the private players into food sector has primarily driven the business,” said Aivalli
At the recently concluded two--day Global Investors Meet, in Bangalore,Yes Bank and the Federation of Indian Chamber of Commerce (FICCI) took the opportunity to highlight Karnataka’s capability in food processing through a report titled “An Attractive Investment Destination for the Food Processing Industry.”
Karnataka’s agriculture strengths include vast and diverse agro climatic condition with 83 per cent of cultivable geographic area. The state is the third largest producer of fruits in the country and fifth largest for vegetables. It is the largest producer of spices, aromatic and medicinal plants, apart from holding a leadership status in ragi & sunflower. Over 70 per cent of the coffee production is from the state.
There is a diverse raw material supply supported by expanding infrastructure which augers well for industry. “Our objective is to create awareness about the state’s agricultural strengths, create interest to generate potential investments into food processing sector. But what is required is an assertive attitude and a coordinated exercise to achieve results at faster pace,” Aivalli pointed out.
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