HYDERABAD: Hyderabad-based Tanvi Foods, which is into manufacturing of corn-based value-added products, plans to set up a manufacturing facility in the upcoming mega food park in Andhra Pradesh out the proceeds of its recent initial public offering (IPO), said a senior company executive.
The company on Thursday got listed on the Bombay Stock Exchange and expects to rake in Rs 6.6 crore from the IPO proceeds to be used for expansions.
The company’s promoter Nagaveer Adusumilli said they were waiting for land allotment notification from Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and were looking to reduce large part of their Rs 4 crore of debt.
“We plan to penetrate further into South and we are looking for distributors for our products,” said Adusumilli.
The expected plant would be their second manufacturing unit with a capacity of 2.5 lakh corn samosas a day along with other corn-based value added products. The company’s existing plant at Vijayawada, set up at a cost of Rs 1 crore in 2007, has a capacity of 1.25 lakh samosas and is running at 60-65% capacity utilisation.
The company has a cold storage and a cold chain logistics subsidiary, which apart from serving their needs also services to other retailers and FMCG companies including Heritage Foods and Ratnadeep.