Videocon to take over Kanchan Foods
VIDEOCON Industries on Thursday signed a memorandum of understanding (MoU) with the West Bengal Industrial Development Corporation to take over the closed Siliguri-based Kanchan Foods. Kanchan Foods was a maker of jams, jellies and pickles under the Kanchan brand. Now, Videocon proposes to manufacture colour TVs and computers at the erstwhile KFL premises.
In the first year, Videocon will invest Rs 25 crore in the unit. Thereafter, depending on demand, the company will invest another Rs 75 crore. It has decided to absorb all 35 employees of Kanchan Foods.
“At a later date, we have plans to expand it further and start producing refrigerators, washing machines and other home appliances,” said Anirudh Dhoot, director, Videocon Industries, who was in the city to sign the MoU. Mr Dhoot also spoke about the company’s upcoming Rs 200-crore greenfield home appliances venture in Uttaranchal. The proposed facility will roll out 3 lakh ACs and 50,000 refrigerators annually.
He said, “The Uttaranchal plant will be ideally located to cater the northern market which is witnessing growth in consumer durables. Initially, we will manufacture ACs and refrigerators, but at a later stage we will manufacture washing machines also.”
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