Bairaha Farms in new Rs. 1.65 bln animal feed
View(s):Bairaha Farms Plc (BFP) is collaborating in a new project to set up a large scale, state- of- the- art commercial animal feed manufacturing factory together with raw materials procurement and modern post-harvest storage facilities.
In a statement to the Colombo Stock Exchange, the company said the joint-venture known as Fortune Agro Industries (Pvt) Ltd (FAI) is being promoted by another poultry producer namely, Farms Pride (Pvt) Ltd., which is a partner of Bairaha Farms PLc in a cmpany named, Fortune G-P Farms (Lanka) Ltd. “FAI has already received the preliminary Letter of Approval from the Board of Investment wherein the 7 years Tax Holiday, subject to implementation of the project within 24 months, is mentioned,” it said, adding however that the agreement between the joint-venture company FAI and the Board of Investment is yet to be signed.
The total estimated cost of the new joint-venture FAI is around Rs.1.65 billion, which includes Rs.650 million for working capital. Bairaha Farms PLc intends to take up around 45 per cent share of the equity in this new venture, which may take around 15-20 months to commence commercial operations. “Another 45 per cent of the equity capital will be taken up by the promoters, namely Farms Pride (Pvt) Ltd and the remaining balance 10 per cent of the equity capital is to be offered to a partner who could add value to the new joint- venture,” the statement said.
Fortune G-P Farms (Lanka) Ltd enjoys nearly 50 per cent market share of the broiler breeder parent chicks requirements of Sri Lanka.