Chareon Pokphand to invest $500m in India
It is investing the money on setting up farms, feeds and growing its quick-service restaurant chain, Five Star Chicken, in the country. Chareon Pokphand hopes the investment will grow annual turnover to $1.2 billion.
It will be doubling its poultry feed operation with the addition of new factories in Maharashtra, Punjab, Haryana and West Bengal. Production capacity will also be doubled to 300,000 tonnes a month over the next five years, with the company able to cater to all regions of India.
First introduced to India in 2012, Five Star Chicken restaurants currently generate annual revenues of $14m, which Chareon Pokphand hopes to grow to $70m with the investment. The company also plans to introduce fish- and shrimp-based foods to the chain over the next three years.
According to Sanjeev Pant, senior vice-president, 30% of the $500m will be funded by the company, with the remainder coming from bank loans.