Nestle to invest Rs 500 cr on expansion in Punjab

Nestle India limited on Monday showed keen interest to invest Rs 500 crore for the expansion and modernisation of its existing unit at Moga in Punjab.

Written by Express News Service | Chandigarh | Updated: April 14, 2014 2:20 pm

Nestle India limited on Monday showed keen interest to invest Rs 500 crore for the expansion and modernisation of its existing unit at Moga in Punjab.

An assurance to this effect given by Nestle India Limited (NIL) Chairman and Managing Director Antonio Helio Waszyk to Punjab Chief Minister Parkash Singh Badal during a meeting here at the CM’s residence.

Maintaining that NIL had an investment worth Rs 9,500 crore across the country,Waszyk told Badal that the company had already invested nearly Rs 250 crore. The balance will be invested for technological upgradation,expansion and modernisation of its Moga plant over the next two years,he added.

Claiming that the company had launched its first unit in 1961 at Moga,Waszyk termed it as the “jewel in crown” of the firm’s investments across the globe. “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 per cent are Punjabis. Likewise,Nestle purchases raw material worth Rs 650-700 crore from Punjab annually,” Waszyk said.

He added: “At present,the company was procuring milk from 1,10,000 dairy farmers in the state,which was reflective of Nestle’s affinity with Punjabi farmers… Nestle was fortunate to launch its operation from Moga,which proved to be a gateway for their entry in India at eight different locations.”

Waszyk also responded positively to Badal’s proposals to set up a state-of-the-art composite dairy centre — comprising a super-specialty veterinary hospital,model dairy farm,a breeding centre and a training facility for dairy entrepreneurs — in collaboration with the government in the state. The centre is likely to come up near Moga. On Badal’s persuasion,Waszyk agreed in principle to upgrade three to four existing private dairy farms

On his part,Badal assured the Nestle team that the government will extend all possible support to fructify their investment plans. On the issue of exemption of purchase tax on procurement of milk,Badal assured that he will get this issue examined by the state excise and taxation commissioner. “Interests of all stakeholders,including dairy farmers,procurement agencies and the state government will be safeguarded while resolving this issue,” he said adding that he will also take up the issue of proposed General Sales Tax with the Centre.

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