Astha International Limited, one of India's leading direct selling companies based out of Surat (Gujarat), would invest Rs 5000 crore on a slew of business ventures in Orissa by the end of 2012.
The investment which is to be raised through a mix of debt and internal accruals as well as from its 4.5 lakh odd distributors across the country, will be made on developing an integrated township project called 'Astha City' near Berhampur, a star hotel in Puri and a textile mill in Bhubaneswar.
Besides, Astha International would set up a dairy production unit, a multiplex and a hyper mall in the city.
The company has opened an office in the city and this would serve as the zonal office for the states of Orissa, Andhra Pradesh, Chhattisgarh and West Bengal.
Together, all these projects will generate direct employment for over 10,000 people in the state.
All these projects are expected to be commissioned by the end of 2012.
Addressing media persons here, Chandra Singh Chauhan, chairman and managing director, Astha International Limited said, “We have lined up an investment of Rs 5000 crore for Orissa by the end of 2012. The company would first begin with the integrated township project for which it has already identified around 200 acres of land near Berhampur.”
The company is betting big on the Orissa market which currently accounts for about 50 per cent of its overall revenues.
Astha International which has operations in 12 states of the country, clocked a revenue of Rs 300 crore in the last fiscal.
Out of 4.5 lakh distributors of the company, 1.5 lakh are based out of Orissa.
Astha International, which has more than 10,000 products in 26 different segments, also plans to float a bank called Astha Bank by 2011-12.
“We have already got the license of the Reserve Bank of India for starting banking operations and our bank will commence operations from 2011-12”, Chauhan claimed.
The deal was stuck since November following objections raised by Sebi