Materials and garment maker Suumaya Industries Ltd, as a result of its subsidiary Suumaya Agro Ltd, has obtained a fifty one for each cent stake in agri-tech start off-up payAgri Improvements Pvt Ltd for an undisclosed sum.
The Theni-headquartered payAgri will help connect growers of commodities these types of as spices, coconut and paddy with processors and individuals.
Suumaya, which forayed into agri-commodities last yr, is constructing agri-business enterprise product exploring multiple avenues like B2B, B2C as a result of its retail foray. The corporation functions in wheat and maize price chain in North, although payAgri has a robust presence in South, predominantly Tamil Nadu.
Sturdy foothold
“The acquisition of payAgri will permit us to obtain a robust foothold in the agri price chain business enterprise in India. Agri-business enterprise is witnessing robust traction. We would be differentiating our tactic in the whole agri price chain and endeavour to be dominant participant in the phase,” said Ushik Gala, Chairman and Handling Director of Suumaya Industries, in a statement. The funds infusion by Suumaya will enable drive the expansion and expansion of payAgri as a farmer-centric price chain centered hybrid bulk and retail supply chain product, Gala said.
KVM Rajkumar, Co-founder and MD (Bulk Worth Chain Business enterprise), payAgri Improvements, said the investment decision will enable the corporation to spend in critical farmgate and supply chain infrastructure, grow its reach and improve its tech platforms.
payAgri, which functions with about 70 farmer producer organisations masking more than 70,000 farmers, plans to grow its footprint in all the 4 southern states, aside from focusing on Gujarat and Rajasthan following yr, Rajkumar said.
“We will leverage Suumaya Agro’s presence in North to grow the market for our goods these types of as spices, predominantly cardamom, pepper and turmeric, although furnishing them linkage for wheat and maize in the Southern markets,” Rajkumar advised BusinessLine.
PayAgri would also be searching at options to grow its abroad presence in Dubai and Oman, exactly where it is now exporting spices. “We taken care of about one,two hundred tonnes of spices last yr. With this offer, payAgri would be focusing on a month-to-month volume of one,000 tonnes of spices,” Rajkumar additional.
Rajeev G Kaimal, Co-founder and MD (Goods & FinTech Business enterprise), payAgri, said the solutions that we deliver from market linkage, know-how and monetary linkages not only will help farmers and farmer establishments, but also other actors in the price chain. with this investment decision help, we goal to get this product throughout geographies in the coming months., he said.
Established in 2017, payAgri has been worthwhile for the previous three a long time, Rajkumar said. payAgri is funded and supported by NABARD MABIF, CIIE.CO IIM Ahmedabad and Royal Agricultural University, United kingdom.
Suumaya Industries scrip attained 5 for each cent on NSE to shut at ₹533.fifty on Tuesday.
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