Patanjali Group is set to develop an orange processing cluster at its unit in the non-SEZ area of the MIHAN project in Nagpur. The venture is being described as the largest government subsidy-backed orange processing cluster in the country.
The project will be executed by Patanjali Food and Herbal Park Private Limited, which plans to invest around Rs 650 crore in setting up advanced fruit processing and value-addition facilities. Part of the investment will be reimbursed as subsidy by the National Horticulture Board (NHB), functioning under the Union Ministry of Agriculture. In addition, Indian Overseas Bank has sanctioned a loan of nearly Rs 125 crore for the project.
The company aims to source oranges and other fruits from nearly 21,000 hectares spread across Nagpur, Wardha and Amravati districts, covering close to 20 per cent of the region’s total orange cultivation area.
Besides fruit juice production, Patanjali is also targeting business opportunities in the pharmaceutical, food essence, fragrance and cosmetics sectors. The company plans to process orange peels and seed extracts for supply to these industries and is eyeing a business potential of nearly Rs 5,000 crore. Company officials said certain orange components are already widely used in the pharmaceutical sector, where the market remains largely dependent on imports.
Patanjali is expected to emerge as the biggest among 100 units shortlisted under the NHB’s multi-commodity high-value cluster scheme. Under the scheme, the company will act as the implementing agency and enter into agreements with farmers from Nagpur, Wardha and Amravati for procurement of oranges and other fruits.
Farmers will be able to associate with the company through farmer organisations, cooperatives or individually. Officials clarified that growers will not be bound to sell their produce exclusively to Patanjali. Sources in the NHB said farmers will also receive subsidies for purchasing equipment and improving productivity.
A team led by NHB Deputy Director Pawan Kumar visited the Patanjali site on Tuesday. The project is currently at the detailed project report stage and is expected to take around two years to become operational.
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