Rs 125 cr unit to manufacture food & personal care goods
|ITC Ltd is setting up a Rs 125.21-crore plant in the BHEL industrial estate at Haridwar in Uttaranchal to manufacture food and personal care products.|
|When contacted, senior ITC executives did not confirm the news but an ITC spokesperson said, "It is very premature to comment on the investment."|
|He cited Uttranchal as one of the main options before the company. Ravi Naware, divisional chief executive (foods), however, said he was not aware of any such move.|
|Officials said ITC was allotted 1.62 lakh square metres of land in the industrial estate after its submission of the detailed investment proposal. The company, in its proposal to the Uttaranchal government, had said the plant would employ 415 people and would have a power consumption of 3,000 kilowatt.|
|The plant, which was supposed to come up in Andhra Pradesh, shifted to Uttaranchal owing to the tax incentives available in the northern state, said an industry source.|
|In this context it should be noted that companies setting base in Uttranchal was able to avail of incentives like 100 per cent central excise exemption for 10 years, 100 per cent income tax exemption for five years and a number of other fiscal incentives.|
|The ITC investment comes after biscuit major Britannia Industries Ltd's announcement of setting up a Rs 57.38 crore plant in the Pantnagar industrial estate for manufacturing biscuits and other food products. Another biscuit manufacturer Dukes Products India Ltd had also decided to start a Rs 8.09 crore plant in the Pantnagar industrial estate.|
|ITC's foods business includes categories like ready-to-eat foods, staples, confectionery and snack foods.|
|It owns leading brands like the Sunfeast biscuits, Ashirvaad brand of atta and salts and confectionary brands Mint-O and Candyman. The company had acquired the brand Mint-O from Candico in 2002.|
|The company had earlier said that it was eyeing a turnover of Rs 500 crore by 2007 from its food business and also planned to achieve a breakthrough in the next two years. The company is also planning to get into newer product categories like spices and packaged juices to compete with the likes of Dabur and PepsiCo, leveraging its vast farmer network.|
|ITC is one of the country's leading private sector companies with a market capitalisation of $9 billion and a turnover of $3 billion.|
|The company has a diversified presence in cigarettes, hotels, paper,agri-business, branded apparel, packaged foods, confectionery, greeting cards and other FMCG products.
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