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FOREIGN EXPANSION

CPF to set up two more chickenfeed mills in India

Growing economic and purchasing power in India has prompted Charoen Pokphand Foods (CPF) to set up two more feed mills in Pune and Hyderabad with an estimated investment of Bt600 million.

Published on April 9, 2008



They will produce feed meal for its chicken farms in the country

and the company will reach a production capacity of 300,000 tonnes a year. Each mill is expected to produce 10,000 tonnes per month.

Currently, its two existing feed mills in Bangalore and Vijayawada, Andhra Pradesh, produce a combined 15,000 tonnes per month.

The investment will allow CPF to expand its success with both livestock and aquaculture feed mills in the country.

In January, the company announced that it would expand investment to set up a third feed-meal plant for shrimp in the west of the country, close to the Indian Ocean. The investment is Bt333 million.

Chief operating officer Pong Visedpaitoon said the Pune and Hyderabad feed mills would be wholly owned. The investment will allow the company to achieve integrated farm management.

"The operation in India is the same model as we have in Bangkok," he said, adding that India has a lack of premium slaughterhouses but CPF does not plan to set one up.

Meanwhile, operations in India still have an electrical brownout problem.

CPF executive vice president Virachai Ratanabanchuen said the new investment would increase the company's chicken-farm production from 700,000 to 1.2 million chickens per week. The country's total production is 25 million chickens per week.

Achara Pongvutitham

The Nation

Hong Kong



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