Equity Bulls | 1 December 2010
Neha International to acquire land in Zambia
In a move to expand its agribusiness operations, Neha International entered into a MoU with Zambia Development Agency (ZDA) to facilitate the acquisition of 100,000 hectares of land for agricultural development in Zambia. This MoU marks the beginning of a new alliance between Neha Agri Zambia Ltd, Wholly Owned Subsidiary of Neha International Ltd, and ZDA, the economic growth and development arm of the Zambian government.
Burgeoning populations world over have been putting stress on producers for maximizing the yields for feeding the growing numbers. The onus is on developing countries which continue to add numbers to their existing population while remaining undernourished. The only solution appears to be putting their arable land to the best possible use. Keeping food security as top priority, Neha International began large scale cultivation of 4,000 hectares of land in Ethiopia. State of art equipment has been sourced from CLAAS, AMAZONE and RABE of Germany, DOOSAN of S. Korea and Asthor of Spain.
A world class rice mill and Seed processing unit has been procured for post harvest operations in Ethiopia. The Company is investing in developing infrastructure like construction of roads, creation of irrigation facilities, rainwater harvesting, conducting trials of new varieties of various crops and application of organic fertilizers for yield enhancement.The Company's business model relies on cultivation of the food in demand in one country (Hub) and sell the produce within the country and the neighboring markets (Spokes). This would ensure food security for local communities as well as those in neighboring regions. Further, as part of this business model, Neha intends to provide technical guidance, best quality seed, processing facilities and a 100% buy-out guarantee to local farmers (out growers model). The Company would continue to acquire and develop arable lands in other countries of Eastern and Southern Africa as part of its business development strategy.