SPS buys Pailan food unit

Kolkata-based SPS Group, has acquired 55 per cent stake in Ascon Agro Products Exporters, a subsidiary of the Pailan Group, for about Rs 4 crore.

"The current valuation of Ascon Agro is close to Rs 35 crore and paid-up capital of Ascon is close to Rs 7 crore," said Bipin Kumar Vohra, chairman and managing director, SPS.

Ascon Agro also operated a marine college offering diploma, which would be de-merged and controlled by the Pailan Group post-acquisition, said Apurba Saha, founder and chairman, Pailan Group.

SPS has acquired management control in the company, and would invest about Rs 175 crore over the next few years at the Dhaniakhali food processing facility of Ascon, which is a export-oriented-unit manufacturing potato flakes, spread over 10 acre of land. The plant will begin commercial production this month.

The present production capacity the plant is processing 3,500 tonne potatoes per annum, with an installed capacity of up to 7,000 tonnes per year. Recently, another 20 acre land has been acquired by the company for a meat processing unit in the same area.

SPS will privately acquire about 70 acre of additional land for setting up a food park and a multi-purpose cold storage facility.

The rough investment in the food park would be close to Rs 100 crore, and that in cold storages would be Rs 15 crore. The investment in the meat processing unit would be Rs 40 crore.

The cold storage would have a holding capacity of 50,000 tonne of potatoes and 60,000 tonnes of other vegetables and dairy products.