Nexus India Capital has invested in Suminter India Organics, a leading contract farming company that focuses on organic produce for the textile and food industries.Nexus, a $100-million fund, has so far invested in technology, mostly internet and wireless companies. This investment in farming is first of it's kind on the space and may have to do with special emphasis in recent budget on VC investments in this sector.
Sandeep Singhal, Managing Director, Nexus India Capital Advisors, spoke about a huge potential demand for organic products globally.
Suminter, which supplies to buyers in the US and Europe, currently has a farmer network in four Indian states, across 25,000 acres of land. Its network of farmers grow cotton, oil seeds, spices and herbs, in accordance with buyers demand. The company plans to expand its reach to ten Indian states. It will also set up an organic food park with high-end machinery for processing.
As posted here previously, it seems the money is headed for the farms.
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