May 22, 2013

Nestle to invest US$45 million on Punjab milk plant expansion

 

 

Nestle India will invest INR2.5 billion (US$45 million) on expansion and modernisation of its existing milk plant at Moga in Punjab.

 

In his meeting with Punjab Chief Minister Parkash Singh Badal here, Nestle India Ltd Chairman & Managing Director (CMD) Antonio Helio Waszyk said the company had made investment of INR95 billion (US$1.7 billion) in the country, according to an official statement.

 

He added that Nestle had already invested nearly INR2.5 billion (US$45 million) and the balance would be invested for technological upgradation, expansion and modernisation of its Moga plant over a period of the next two years.

 

Badal said the meeting with Waszyk would put all the rumours of winding up its unit from Punjab which was spread by opposition party, at rest.

 

Waszyk said the company had launched its first unit in 1961 at Moga and termed it as 'Jewel in Crown' of their investments across the globe. He said, "It is a plant in Punjab run by Punjabis, which is evident from the fact that out of total work force of 25,000 employees, 90% are Punjabis. Likewise, Nestle purchases raw material worth INR6.5-7 billion (US$117-126 million) from Punjab annually."

 

At present, the company was procuring milk from as many as 110,000 dairy farmers across the state.

 

Waszyk further said Nestle was fortunate to launch its operation from Moga which proved to be a gateway for their entry in India at eight different locations. He also responded positively to the proposals of the Chief Minister to set up a State-of-the-art composite dairy centre in collaboration with Punjab government comprising a super speciality veterinary hospital, model dairy farm, a breeding centre and a training facility for the dairy entrepreneurs in the state.

 

The state government would work out the modalities for arranging suitable Panchayat or government land in some village near Moga for setting up of this composite dairy centre.

 

On the persuasion of Chief Minister, Waszyk agreed in principle to upgrade 3-4 existing private dairy farms to demonstrate modern dairy practices, which would prove to be a beacon for the young dairy entrepreneurs to adopt dairy as an allied farming, the release said. Winding up the deliberations, the Chief Minister assured the visiting Nestle team that the Punjab government would extend all possible cooperation and support to fructify their investment plans in the near future.

 

On the issue of exemption of purchase tax on the procurement of milk, Badal assured to get this issue thoroughly examined from the state Excise and Taxation Commissioner. He added that interests of all the stakeholders, including dairy farmers, procurement agencies and state government, would be safeguarded while resolving this issue.