16 companies sign MoU for FMCG cluster at Hubballi Dharwad

16 companies came forward to sign MoU (Memorandum of Understanding) to invest in Fast Moving Consumer Goods (FMCG) cluster planned at Hubballi Dharwad.

The investment worth ₹1275 Crores is expected to generate 9,100 jobs. Noted industrialists and entrepreneurs attended the event which took place at a private hotel in Hubballi.

Karnataka government has reserved 500 acres of land at Mummigatti Industrial Area, Dharwad to establish FMCG cluster. FMCG cluster is likely to accelerate the industrial development of Hubballi Dharwad.

The list of Investors and the number of jobs to be created is as follows.

1. Jyoti Labs: 50 Crores investment, 600 jobs.
2. Naturo Foods: 25 Crores investment, 500 jobs.
3. Alkali India: 100 Crores, 300 jobs.
4. Uflex: 500 Crores, 500 jobs.
5. Riviana Foods: 50 Crores, 1000 jobs.
6. Ghodawat Foods: 320 Crores, 2500 jobs.
7. Pagariya Foods: 10 Crores, 500 jobs.
8. Hangyo: 25 Crores, 500 jobs.
9. Anusharan group: 25 Crores, 500 jobs.
10. Panchamruta Industries: 20 Crores, 300 jobs.
11. Indira Foods: 20 Crores, 400 jobs.
12. Vibhava Industries: 50 Crores, 800 jobs.
13. Orient Press: 30 Crores, 300 jobs.
14. Mahalaxmi Group of Companies: 10 Crores, 100 jobs.
15. Urdaneta Capital Holdings: 10 Crores, 100 jobs.
16. Patil Parimala Works: 20 Crores, 300 jobs.

Ullas Kamat, the Chairman of FMCG Vision group said that “FMCG sector provides second highest job opportunities to the people only next to the Agriculture sector.”

“If you invest 10 lakh, it creates 1 job opportunity. If someone invests 10 Crore, it can create 100 direct jobs and 400 indirect jobs. It is the only sector that has not seen any degrow since independence.” he added.

Former CM and Hubballi Dharwad Central MLA Jagadish Shettar thanked Ullas Kamat who had prepared the report on why FMCG companies should invest in Hubballi Dharwad.

“The industrialists who are in the FMCG sector or other areas; if they read the report prepared by the Vision group, then they will definitely invest in Hubballi Dharwad“, he added.

Dharwad MP Pralhad Joshi lauded the efforts of MLA Jagadish Shettar. The FMCG sector was announced to Hubballi Dharwad during his tenure as Industrial minister.

All the FMCG companies at Hubballi Dharwad are entitled to get a 20% concession and an additional 3% of concession on GST. Joshi thanked CM Basavaraj Bommai for sanctioning the concession.

Speaking about the readiness of Hubballi Dharwad, he added that HD is neither cold nor hot. The place is safe from floods, and there is no occurrence of Earthquakes.

Speaking about improving the logistic infrastructure, Pralhad Joshi added that the government has given the green signal to Hubballi Ankola railway line and improvements to Belekeri port.

TV Mohandas Pai, noted entrepreneur and former director of Infosys added that ‘Hubballi Dharwad is a very important place because it is the future of Karnataka.

The area has got Human capital, Highly educated trained workforce, Water, Land, Visionary leadership, and everything else to take Karnataka forward.

“Hubballi Dharwad should lead Karnataka in becoming the FMCG center of India. It should become the Education center, EV capital, and industrial capital of India” he added.

Speaking at the event, Chief Minister Basavaraj Bommai said that ” We need to create employment opportunities in North Karnataka to stop the outflow of talent to other cities and states”.

Establishment of FMCG cluster will make sure that the trained workforce of Hubballi Dharwad and the North Karnataka region will get enough employment opportunities” he added.

Fast Moving Consumer Goods (FMCG) are products that sell quickly at relatively low cost. FMCG account for more than half of all consumer spending, but they tend to low-involvement purchases.