IFFCO, Sikkim govt to set up organic food JV, invest ₹200 cr

Fertiliser major IFFCO on Monday said it has signed an agreement with Sikkim government to explore business opportunities in organic food market with an initial investment of Rs 200 crore.

The foray into the organic food market and food processing is a part of the co-operative IFFCO's strategy to diversify its business.

Apart from fertiliser, IFFCO is into general insurance, agro-chemicals, rural telecom, rural retail and farm forestry.

Indian Farmers Fertiliser Cooperative (IFFCO) announced signing of memorandum of understanding (MoU) with the Sikkim government.

"Basis the MoU, a joint venture - 'Sikkim IFFCO Organics Ltd' (Sikkim-IFFCO) will be established to explore business opportunities in organic value chain," IFFCO said in a statement.

IFFCO will hold majority stake of 51 per cent equity in the JV while the Sikkim government will hold 49 per cent.

"The initial investment for the project will be around Rs 200 crore, which will be increased to Rs 500 crore in phases," the co-operative said.

IFFCO also announced acquisition of 50 per cent stake in Aquagri Processing Pvt Ltd, which is into seaweed cultivation and processing, for Rs 11 crore through its wholly-owned subsidiary IFFCO eBazar Ltd.