Tidco is setting up a floriculture infrastructure park at Hosur in Tamil Nadu and is acquiring 80 acres of land for this purpose. Indian Overseas Bank is doing the feasibility study of the project. Tidco expects to develop the project as a joint venture by holding 26 per cent stake with the balance to be held by the venture partner. Private traders in floriculture will set up shop in the park taking developed plots on lease.

According to Raghunandan, Tidco has the expertise in managing the floriculture business while KAICL has the experience in conducting auctions of cut flowers. There will be synergy between the two agencies and he feels it is not profitable for both to set up separate auction facilities. The biggest advantage, according to him, is that a great megalopolis has emerged between Hosur in the east in Tamil Nadu to Hassan in the west covering about 220 km and between Mysore to Tumkur in the inland touching a large part of Karnataka.

The emergence of the megalopolis, he says, will enable joint auction by KAICL and Tidco a far more viable proposition than if each were to set up separate facilities.Karnataka's cut flower auction programme is booming with turnover of KAICL expected to touch Rs 1.8 crore in the current fiscal. Last year the revenue from cut flower auction was Rs 70 lakh. The auctions are held daily and on the lines of one being done in Holland. Close to 35 flower traders come to the auction to buy the flowers. KAICL has set up the auction facility including cold storage facilities with assistance from Agricultural Produce & Processed Foods Export Development Authority (APEDA). Now KAICL is working on a tie-up for transportation of flowers as well as there are no international flights starting from Bangalore at present.

An arrangement with Tidco, Raghunandan says, will enable both to share in the boom in business in the domestic market. Cut flowers are now in great demand for commemorative occasions and major events.