The Patanjali Group is set to develop a major orange processing cluster at its unit in the non-SEZ area of the Mihan project in Nagpur. This initiative is being recognized as the largest government subsidy-backed orange processing cluster in the country.
Investment and Subsidy Details
Patanjali Food and Herbal Park Private Limited will inject a fresh investment of Rs650 crore into the cluster. The funds will be utilized for acquiring new equipment to process fruits for value addition. A portion of this investment will be reimbursed as a subsidy from the National Horticulture Board (NHB), which operates under the Union Ministry of Agriculture. Additionally, a loan of approximately Rs125 crore has been sanctioned by the Indian Overseas Bank for the project.
Land Coverage and Market Focus
The company plans to cover up to 21,000 hectares of land across Nagpur, Wardha, and Amravati districts for sourcing oranges and other fruits. This area represents nearly 20% of the total orange cultivation in the region. Beyond fruit juice, Patanjali aims to tap into the pharmaceutical, food essence, fragrance, and cosmetics sectors by supplying orange peel and seed extracts. The company anticipates a business volume of around Rs5,000 crore from these segments, reducing dependence on imports and addressing a significant untapped market.
NHB Scheme and Farmer Engagement
Patanjali is expected to be the largest among the 100 units shortlisted under the NHB's multi-commodity high-value cluster scheme. Acting as the implementing agency, the company will sign agreements with farmers from the three districts for the purchase of oranges and other fruits. Farmers can engage through farmers' organizations, cooperatives, or individually, with no obligation to sell exclusively to Patanjali. Additionally, farmers will receive subsidies for purchasing assets to enhance productivity, according to an NHB source.
Project Timeline
A team from the NHB, led by deputy director Pawan Kumar, visited the Patanjali site on Tuesday. The project is currently in the detailed project report stage, and it may take approximately two years for operations to commence, sources indicated.
