We are excited to contribute to the revival of Karuturi thereby enabling 2,200 strong workforce of largely women and youth to come back to work – Gaurav Dhawan
Karuturi Global, the world’s largest producer of cut roses, said Monday Singapore-based Phoenix Group has invested in the company that will help repay debt and revive the Kenya operations.
“Phoenix Group’s investment means the firm can repay its debts as obligated by the High Court of Kenya in a week or less,” Karuturi Global CEO Ram Karuturi said in a BSE filing.
As per the January order of the court, Karuturi was obligated to repay debt and redeem the farm in the next 90 days, he said.
“The investment comprising of a blend of debt and equity is expected to help Karuturi meet its current debt obligations and leapfrog it towards restarting its operations following the conclusion of a four-year receivership in Kenya,” he added.
Karuturi’s Naivasha farm in Kenya has 500 acres of land with 300 acres of greenhouses valued at over USD 100 million. The farm produces about 33 million roses annually for export to Europe accounting for about 10 per cent of Kenya’s exports of cut flowers.
The CEO said the company will re-employ ex-employees and re-establish all social benefits.
“The investment is timely,” Phoenix Group Executive Chairman Gaurav Dhawan said, adding that the company is keen to contribute to the revival of Karuturi.
“We are excited to contribute to the revival of Karuturi thereby enabling 2,200 strong workforce of largely women and youth to come back to work. We only await certain clarifications from the court to initiate the process,” Dhawan said.
Karuturi, based in Bengaluru, also has floriculture farming in India and Ethopia besides food processing, retailing and IT. Phoenix operates 10 business verticals in 22 countries.
(Source; Business Standard)