Foods -; Inns gets approval under category 3 of PLI scheme; Stock surges ~4%

7 Jan 2022 , 11:26 AM

Foods & Inns Limited has received an approval from the Government of India under Category 3 of the Production Linked Incentive Scheme for Food Processing Industries under which the company has to incur Branding & Marketing expenditure to build its own brands outside India between FY’2021-22 to FY’2025-26.

The govt. under this incentive scheme will reimburse the company 50% of the Branding & Marketing spends on a yearly basis from FY’22-23 to FY’26-27.

Commenting on the occasion, Moloy Saha (CEO- Foods & Inns Ltd.) said, “Foods & Inns is thankful to the Govt. of India and the Ministry of Food Processing Industries for providing such encouraging platforms to the Domestic Food Processing sector and for selecting Foods & Inns as a recipient of incentives under both Category 1 & Category 3 of the PLI Scheme for Food Processing Industries.

We are positive that we will contribute immensely towards building a strong ecosystem for strengthening the agro processing space in India and in establishing our own brands abroad.

This programme by the govt. will give further fillip to our B2C foray. Taking into account both Category 1 & Category 3 incentives, Foods & Inns stands to receive anywhere between Rs.110crs to 150crs between the period FY’22-23 to FY’26-27 based on our performance metrics. We are expected to grow our sales at a minimum CAGR of 10% over FY’22 to FY’27 as per the scheme guidelines to be eligible to receive incentives under Category 1 of the PLI Scheme with the maximum cap of incentives at a CAGR growth rate of 15%.

Under Category 3 approval, we are expected to get incentives of 50% of our Branding & Marketing expenses incurred abroad over the period of FY’22 to FY’26. These incentives will be in the form of direct bank transfers to the company upon achieving yearly milestones as committed under the scheme”.

At around 11:28 AM, Foods & Inns was trading at Rs96.10 apiece up by Rs3.5 or 3.78% on Sensex.