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Aequs Infra sets ups FMCG mfg ecosystem at Hubballi in Karnataka
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Saturday, 09 November, 2024, 08 : 00 AM [IST]
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Nandita Vijayasimha, Bengaluru
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Aequs Infra, an industrial infrastructure provider, launched its Fast-Moving Consumer Goods (FMCG) manufacturing ecosystem at Hubballi in north Karnataka. The ecosystem is located at the Hubballi Consumer Goods Cluster (HDC). The objective is to provide employment, drive GDP growth, and establish North Karnataka as a key destination for FMCG manufacturing.
Now, FMCG sector is positioned as being vital to the economy, as it responds quickly to consumer trends and demands. The products sold quickly and at a relatively low cost. These goods include essential everyday items such as food and beverages. The industry is characterised by high-volume sales, quick inventory turnover, and various products catering to consumer needs.
Karnataka government is offering incentives for goods produced in the state, including a subsidy of up to 20% of the value of fixed assets. These incentives include a subsidy of 20 per cent of the value of fixed assets, subject to a maximum of Rs 25 crore, and a performance-linked incentive of 3 per cent on annual turnover for five years, capped at 100 per cent of the value of fixed assets, said the State Minister for Large Industries and Infrastructure M B Patil when he unveiled the ecosystem at a special curtain raiser ceremony in Bengaluru in the presence of potential investors, senior government officials and other dignitaries.
“The FMCG manufacturing ecosystem at Aequs Infra’s Hubballi Cluster is a significant step for North Karnataka growth in the sector and is crucial for driving GDP growth and creating jobs”, Patil said.
According to Ullas Kamath, chairman, FICCI Karnataka State Council, and chairman of the Vision Group, this collaboration is the first FMCG park being developed as a public-private partnership. The state government in its effort to drive manufacturing had planned for an FMCG manufacturing cluster in Dharwad district. A Vision Group was formed to establish the FMCG district, identifying the Mummigatti Karnataka Industrial Areas Development Board (KIADB) industrial area in Dharwad as the designated site for the cluster. This FMCG park is expected to create approximately 50,000 to 100,000 jobs in each phase.
The company officials said that the FMCG manufacturing ecosystem at the Aequs’ Hubballi Consumer Goods Cluster is a unique initiative aimed at turning North Karnataka into a key destination for fast moving consumer goods manufacturing sector for domestic and exports markets. In fact a newsreport stated that MCG majors have shown interest. Many have already signed up for phase one, including MDH Masala.
"This ecosystem will significantly boost production scale and the efficiency of manufacturing units helping them target export markets more effectively. Aequs Infra is keen about the potential of the FMCG ecosystem considering manufacturers in a radius of 400 kilometre of its location account for more than 35 per cent of the market share in India," Aequs Infra said in a statement.
"Aequs Infra's effort is to transform North Karnataka into a global hub for FMCG production. The HDC is designed to offer all manufacturing solutions in one place and to make it easier for manufacturers to do business. The ecosystem is designed to help companies in the area produce and sell goods more efficiently and at a larger scale, both domestically and internationally," said Patil.
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