Chandigarh, August 16:
To promote Agri-business and horticulture in the state by boosting the crop diversification programme, the Punjab Cabinet led by Chief Minister Captain Amarinder Singh on Monday approved the merger of Punjab Agro Juices Limited (PAJL) with Punjab Agri Export Corporation Limited (PAGREXCO).
The cabinet approved the proposal of the Agriculture and Farmers’ Welfare Department for the merger of PAJL with PAGREXCO as per the recommendations of the Board of Directors of PAGREXCO and PAJL and the Officers’ Committee headed by the Chief Secretary.
The merged entity would be called ‘Punjab Agri Export Corporation Limited’, an official spokesperson disclosed afrer the Cabinet meeting, which also authorized the Managing Director, Punjab Agro Industries Corporation Limited (PAIC), to perform all such acts and deeds which are necessary for the implementation of the merger scheme and to make the merger scheme effective.
The merger would lead to better utilization of resources of PAJL with PAGREXCO, creation of synergy, better economies of scale, expansion of operations, stronger farmer connect with forward/backward linkages, common branding/marketing to have a better consumer outreach, which will ultimately benefit the farmers and the agriculture sector of the state.
As per the merger terms and conditions, the new entity is envisaged as a company, and the entire decision making would be vested in the Board of Directors. The Chairman of the merged entity will be an eminent horticulturist with experience in agribusiness. The Board of Directors shall be appointed based their professional competencies from the areas of horticulture, marketing, finance etc.
The objectives of the merged entity include promotion of Agri exports and global agricultural practices like seed traceability etc., encouragement of Farmer Producer Organizations and promotion of Organic Farming, besides processing of F&V with backward linkages with farmers through contract farming and market linkages through professional marketing approach, as well as marketing of all products such as Organics, Condiments, Juices, Fruits & Vegetables.
A professional sales & distribution network will be established on the lines of FMCG (Fast Moving Consumer Goods) companies to scale up volumes and promote products under modern retail, besides incentivizing sales personnel on performance basis. Management of two F&V processing facilities at Abohar and Hoshiarpur, as well as 12 pack houses and 4 primary processing Centers, new HR structure based on mature personnel management structure through performance-based salary and incentives.
