Bethesda, June 20, 2014 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT: IGC), announced that it has entered into a joint venture agreement to produce organic leafy green vegetables through advanced vertical indoor farming technology. The venture has been formed among three companies: IGC, Greenlife Ventures ("GLV"), and GoLocalProduceRI ("GLPRI") and will be located in Rhode Island.
The facilities will encompass about 20,000 square feet and will deploy patented proprietary technology that, based on previously built facilities, has several distinct advantages over current indoor farming methods including being able to achieve yields that exceed traditional methods by up to 100x. The technology also involves incorporating environmentally friendly LED lighting for developing faster growing plants with additional yields of up to 20%. The initial focus will be to grow organic, pesticide free produce that will be sold to customers such as local supermarket chains, restaurants and schools.
IGC will own a majority interest in the venture with technology and operational expertise provided by a seasoned team of specialists. The team possesses expertise in lighting, indoor farming and pesticide free growing techniques intended to maximize produce output.
Once operational IGC will own 51% of the venture. It is estimated that a successful facility of the type contemplated by this venture could produce between $2.0 M and $2.5M in annual revenue with a projected net earnings return of twenty five percent (25%). The total cost of the facilities is expected to be between $2.5 M and $3.0M. There is no guarantee that the estimated revenue and net earnings will be actually realized. The venture has committed debt financing in place for the project.
CEO Ram Mukunda stated, "We are pleased to partner with leading private enterprises to develop a footprint to support the growing demand for organic produce. By positioning our selves in major markets with cutting edge, pesticide free organic growing technology coupled with large scalable operating facilities that can be transformed to grow legal cannabis as soon as there is clarity on the evolving legal framework, IGC will be ready to emerge as a significant player in this high potential and currently fragmented market. "
About IGC:
Based in Bethesda, Maryland, India Globalization Capital, Inc. has articulated a strategy to become a company with diverse operating businesses including niches such as solar energy, specialty pharmaceuticals and medical marijuana. We are currently engaged in trading and rental of heavy equipment in the U.S., China and India. The Company's plan in the short term is to create cash flow from existing assets and in the medium term to expand its asset base through opportunistic acquisitions. For more information about IGC, please visit IGC's website at http://www.indiaglobalcap.com.
Forward-looking Statements:
Some of the statements contained in this press release that are not historical facts constitute forward-looking statements under the federal securities laws. Forward-looking statements can be identified by the use of the words "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed" or the negative of those terms. These statements are not a guarantee of future developments and are subject to risks, uncertainties and other factors, some of which are beyond IGC's control and are difficult to predict. Consequently, actual results may differ materially from information contained in the forward-looking statements as a result of future changes or developments in our business, our acquisition and diversification strategy, our competitive environment, infrastructure demands, iron ore availability and governmental, regulatory, political, economic, legal and social conditions in, among other places, China and India.
Except as required by federal securities laws, IGC undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. Other factors and risks that could cause or contribute to actual results differing materially from such forward-looking statements have been discussed in greater detail in IGC's Form 10-K for fiscal year ended March 31, 2013, and in subsequent reports filed with the U.S. Securities and Exchange Commission.