After establishing itself as a hub of information technology, automobile, textile, electronics and leather industries, Tamil Nadu in general, Chennai in particular, is emerging as a key centre for the food processing industry, said Deputy Chief Minister M.K. Stalin on Wednesday.

Inaugurating Lotte India Corporation's plant near here, Mr. Stalin said the government was keen to spread the benefits of industrialisation evenly to all parts of the State and had announced special incentives for industries investing in the southern districts.

The foundation stone for a food product special economic zone, a joint venture between the TIDCO and CCL with a potential to attract Rs.2,500 crore, will be laid on August 5 at Tuticorin, he said, inviting investors, particularly Koreans, to invest in the SEZ to make it a success story.

Considering the importance of South Korea, one of the major investors in the State with 160 companies in Chennai alone, Mr. Stalin said the government proposed to establish a country specific-industrial cluster for South Korean SMEs near Chennai.

Lotte Group vice-chairman Dong Bin Shin said the Chennai plant, set up a cost of $ 70 million, had the operational capacity to produce 1.8 lakh cartons of Lotte Chocopie, which would be exported to the Middle East and African nations, besides catering to the Indian market.

Already, the Nellikuppam plant manufactured candies enjoying a 10 per cent market share in the country and 20 per cent in southern States. The Chennai facility would enable the company to capture 5 per cent of the market share in biscuits by next year.

On diversification, Mr. Shin said Lotte was looking at the hotel industry.

The group was interested in retail but there were regulations. Asked about future investments in the State, including the proposed food SEZ at Tuticorin, he indicated that the group was likely to invest further after consolidating in two years' time.

Lotte India chairman Yong Tack Kim and Managing Director Myung Ki Min spoke.

Source: TNN