Saturday, May 31, 2008

Karuturi To Raise $250 Million For Ethiopia Plans

Karuturi Global Ltd, (Karuturi Ramakrishna Chairman&MD) a floriculture and food processing firm, is planning to raise $ 250 million, of which $150 million will be through debt and $100 million through equity, for an agriculture project in involving 7.5 lakh acre land in Ethiopia. The company plans to grow paddy, sugarcane, palm and vegetables and will complete its land acquisition by end of 2008. The company has already firmed up $100 million from private equity firms, an official has said..

The company will be diluting 10 per cent stake in its wholly owned Dubai-based subsidiary, Karuturi Overseas Ltd. Debt portion is being raised from a consortium of banks in Ethiopia. Karuturi Global said that half the land will be used in growing paddy and produce will target export market in Europe, West Asia and Africa. Karuturi Global is the world’s largest producer of roses.
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