IFFCO Kisan Sanchar Ltd, a subsidiary of fertiliser major IFFCO, on Tuesday said it has signed a pact with Amreli District Cooperative Milk Producers Union Ltd to procure cattle feed.
The Delhi-based company will market cattle feed under its brand 'IFFCO KISAN'.
According to the agreement, IFFCO Kisan will initially procure 300 tonnes of cattle feed from Amreli District Cooperative Milk Producers Union, and the target is to increase the procurement to 1,000 tonnes over the next few months, the company said in a statement.
The agreement was signed by Sandeep Malhotra, managing director of IFFCO Kisan, and R S Patel, MD of Amreli District Cooperative.
Amreli District Cooperative Milk Producers Union operates a mega cattle feed plant in Amreli, Gujarat, having an overall capacity of 5,000 tonnes per month.
With the latest tie-up, IFFCO Kisan now has tie-ups with 10 entities for procurement/sourcing of cattle feed.
"During fiscal 2020-21, we sold 1 lakh tonnes of cattle feed valued at Rs 160 crore and in the current financial year, we are targeting Rs 300 crore of business.
"Keeping the growth outlook, we are looking to tie up with more third-party manufacturers and association with Amreli District Cooperative Milk Producers Union is a step in that direction," said Ganesh Dash, national sales head, IFFCO Kisan Sanchar Ltd.
Cattle feed business now contributes about 30 per cent of the total business of IFFCO Kisan and is a major focus of growth for the company.
Indian Farmers Fertilizer Cooperative Limited (IFFCO) collaborated with Bharti Airtel and Star Global Resources Ltd, and created IFFCO Kisan Sanchar Ltd. It operates in four major verticals - smart agriculture solution provider, cattle feed business, agri-tech, telecom and call centre services.
