European auto components manufacturer to invest in Nigoje farmers’ firm
Indian Express: Nigoje villagers in Chakan area are on the verge of getting an European auto components manufacturer to invest in Nigoje Logistics, a company formed by 62 farmers in May 2008 after parting with their agricultural land for the Chakan Phase IV project of the Maharashtra Industrial Development Corporation (MIDC).
The announcement by the famers of Nigoje starting a business venture on their own almost 18 months ago was heralded as a unique venture, but the delay in any business getting transacted all this time had resulted in questions being raised about the wisdom of farmers turning entrepreneurs.
Of the 32 acres procured under the buy-back policy of the MIDC for a consideration of Rs 4 crore, the farmers will soon be leasing out nine acres to the leading manufacturer of axles and other spare parts for luxury cars in Europe for a period of 30 years.
The lease agreement is to be signed in the next fortnight.
This break for Nigoje Logistics comes after recession in the West had played truant with the initiative for almost 18 months; many Nigoje villagers who had turned entrepreneurs were in distress as no industrial unit was ready to set up shop on their land.
Now, with this venture almost clinched, the farmers are busy making plans to make good their investment. “It has been a rather long wait for us. We will be leasing out land to the European company and with the money we receive, coming out with a residential complex, mainly service apartments.
This will ensure a steady return on our investment, which in turn can help us in other entrepreneurial activities,” said Anand Yelwande, local farmer and the chairman of Nigoje Logistics.
The European company plans to construct its office in the Nigoje land that will be on lease for 30 years, said MIDC rehabilitation officer Geeta Patil. “Initially, the land will be on lease and will generate regular income for farmers and after 30 years they will be given the option to buy that land.
Meanwhile, the farmers will get a steady revenue,” she said.
The farmers are now eyeing demand for support services that is being anticipated once the company starts hiring personnel.
“We have family members who are already learning driving and we have invested in tempos and trucks which we hope to lease out to the company,” said Yelwande.
Advisor to the farmers’ company, CA Kulkarni, said three acres adjoining the nine acres being earmarked for the auto component manufacturer would be set aside for constructing the service apartments.
“Once the auto components company comes up, these service apartments will be in demand and generate good business for the farmers,” he said.
Kulkarni said that though the bhoomi puja for the farmers’ company was done in May 2008, there were no investors coming to the area due to recession. “Due to recession, farmers had a long wait of nearly one-and-a -half years. The auto componets major’s decision to zero in on the Chakan automotive hub will give a fillip to other entrepreneurial activities in the area,” he said.
A few days prior to the Nigoje initiative, in April 2008, 43 farmers from nearby Nimgaon under MIDC’s Ranjangaon Phase-II had set up Mahaganpati Logistics and Engineering Services. They are yet to get any results; out of the 18.27 acres the farmers had bought back from the MIDC, the plan has been to start a warehouse by leasing out 10 acres of land.
After hearing the news about the lucky break for the Nigoje farmers, those in Nimgaon feel it could be their turn next.
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