Apr 11: The $2 billion Phoenix Group, a global agricultural and food company engaged in the production, procurement, processing, merchanting and distribution through its integrated supply chain, on Wednesday announced an investment in Karuturi Global’s operations in Kenya.
Karuturi Global is a world leader in production of cut roses with operations spread across Ethiopia, Kenya and India.
“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 period in Kenya,” the company said.
According to Gaurav Dhawan, Executive Chairman, Phoenix Group, the investment into Karuturi was a part of the firm’s expansion plan of the farming business which has a unique distributed matrix strategy across geographies and farming techniques.
“This investment is timely and adds floriculture and Kenya to our growing basket,” he said.
Karuturi Global’s CEO, Ram Karuturi, said that Phoenix Group’s investment means the firm can repay its debts as obligated by the High Court of Kenya, in a week or less.
“On January 19, 2018, the High Court ruled in favour of closure of the dispute between the two parties based on a compromise affidavit filed. Karuturi was obligated to pay the court approved amount and redeem the farm in the next 90 days. The Karuturi Group has always been determined to resolve the dispute amicably and restart operations,” said Ram Karuturi.