Avigna to invest Rs 5,000 crore in developing food terminal market in Madhya Pradesh

Avigna Space, the warehousing arm of Chennai-based Avigna group, is in talks with the Madhya Pradesh government to invest Rs 5,000 crore in developing a food terminal market over 800 acres of land, Abhijit Verma, CEO of Avigna Group, told ET. The group aims to revolutionise the traditional sabzimandi, which is one of the major platforms for farmers to sell their produce.

The company will build a place for national and international trade, with a yard and a dry port, hospitals and budget hotels for farmers. “We are looking forward to developing various food and agri terminal markets in India. Our first initiative is in Tamil Nadu, which we are looking forward to groundbreak by the second quarter of 2021,” said Verma.

The company is looking for land at subsidised rates from the state government and the project will be financed with 40% equity and 60% debt. Part of the equity will come as a foreign direct investment (FDI). “In Chennai, we are developing a 10 million sq ft of integrated mega food terminal market and the estimated project cost for TN is Rs 2,000 crore. For Madhya Pradesh (MP), we have given expression of interest and will have to finalise the location of land available,” Verma said.

In MP, the company has planned one mega food park and 12 primary processing markets. In line with the farm bills, the company will promote fair pricing, high-quality storage units, open trade with domestic and international buyers with no involvement of middlemen.

“We are keenly observing MP as a potential platform to showcase a model state to implement new farm bills and as there are very prominent strengths and challenges, we strongly believe that the results will be very prominent and it will become a case study for other states as well,” Verma said.

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At the food terminal, there will be sections for fruits and vegetables, sea food, dairy and meat, grains, and organic produce. The estimated production capacity of the project would be 1.2 million tonnes per annum while the park’s estimated turnover would be Rs 30,000 crore.



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