Himalaya to enter domestic market, to seek 5% incentive on exports

New Delhi, July 31 (UNI) Food-processing company Himalaya International Ltd today said it is set to enter the domestic market, and has taken the approval for change of its Export Oriented Units (EOU) status to Domestic Tariff Area (DTA) status.

The change in status will enable the company to market its products in the burgeoning domestic market.

Besides, this conversion will also make it eligible to seek a 5 per cent incentive on its exports under 'Vishesli Krishi Upaj Yojna' of the Government of India. The company will remain tax-free for the next 10 years, by virtue of undergoing substantial expansion in backward areas under the GoI policy.

Earlier this year in February, the company began commercial production in its speciality cheese plant in Himachal Pradesh.

Set up at a cost of 2.5 million dollars, the plant, which is the first of its kind in India, was estimated to produce 6-7 million pounds in the first year of operation.

The company expects to continue its high growth pattern, with its cheese plant attaining higher capacity utilisation in the post summer months, when the company estimates more orders will be booked, a company statement said.

At full capacity, the plant can process 15 million pounds of Mozzarella cheese annually, valued at 25 million dollars, and is estimated to use 1,00,000 litres of pure buffalo milk per day for the purpose.

The company has imported plant and machinery from the US-based Winnona Foods Inc, and Himalaya has tied up with Winnona for supplying the entire cheese production.

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