New Delhi, July 3: The International Finance Corporation (IFC) will invest $5,1 lakh for a 20 per cent stake in India's first floriculture infrastructure park, Tanflora Infrastructure Park Limited. This park is being set-up at Hosur in Tamilnadu at a total cost of $6 million.The floriculture sector in India has not performed well in the past. Most players in the sector suffered mainly on account of poor choice of location, costly and inappropriate tie-ups for technology and marketing and uneconomical size of holdings.Tanflora, which will act as a business incubator for small floriculture companies, seeks to ameliorate the shortcomings experienced by the Indian floriculture units.
By offering a common infrastructure to all the growth units, the floriculture business would overcome the underutilisation of capacity currently existing in the sector. In addition, through centralised international marketing, the park will build a brand name resulting in better export realisations. The benefits of economies of scale are reflected in terms of a lower unit project cost for growers, optimal freight tariffs and state-of-the-art technical inputs. The success of the park will redefine the viability of Indian floriculture industry.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.