Karuturi enters Ethiopian market

Bangalore: Karuturi Global, the world’s largest growers of roses with presence in India, Kenya, Ethiopia, Dubai and Holland announced the launch of its agricultural operations in Ethiopia where it had acquired 3.4 lakh hectares land on long term lease.

The company said it has started cultivation on 11,700 hectares of land in Bako, Ethiopia. This land will be used for the cultivation of maize, rice, vegetables and other commercial crops.

Mr Sai Ramakrishna Karuturi, Managing Director of Karuturi Global said the company hopes to start sowing operations on an additional 40,000 hectares by March.

He said that his company has already tied up for funds from banks to meet the investment cost, which is estimated at $250 million spread over 60 months. Karuturi will also be sowing long gestation crops such as sugarcane and oil seeds for which it would take some time.

Karuturi is also planning to set up processing units to reap the benefit of additional realisation from the commercial crops. “Actual cost of land would only form small part of the investment as it has been taken on long term lease at $14 a hectare an year,” Mr Sai Ramakrishna said, adding that however farm equipment and the implanting social projects such as constructing schools and healthcare facility as part of the land concession would account for larger chunk of the expenditure.

He said import of farm equipment and developing infrastructure was on and the entire project is expected to be completed by 2014.

Agriculture segment of the company’s business is expected to contribute nearly 25 per cent of the total revenues during financial year. Karuturi Global posted total revenue of Rs 400.5 crore during FY 2007-08, with a net profit of Rs 102.7 crore.