has a presence in other African countries, such as Kenya, none of its investments are highlighted in its portfolio beside those in Ethiopia.
It has a large presence in the country, having been promised 300,000ht of land from the government in Gambella Regional State, 721km southwest of the capital, in 2008.
It has already leased 100,000ht of this land, for 50 years, which it will have to finish developing before it is given the remaining land from the government.
also runs a commercial farm on an 11,000ht plot in Bako, a small town farther south from Ambo, in Oromia Regional State.
Part of over 30,000ht reserved for the state, remaining unutilized since its nationalization in the mid-1970s, Karuturi
has already developed 2,300ht of this land, sowing maize.
has hired an Indian company, i-maritime Marine consultancy group, to advise it on transport logistics from Gambella to these markets.
Karuturi will have its first ever harvest of maize and sesame in April and September, 2012, according to Ramakrishna Karuturi, managing director of Karuturi Global Ltd.
"We need an additional 180 million dollars for further land development [in Ethiopia]," Karuturi
"We have managed to secure most of the finance for our investment, borrowing from a consortium of banks, mostly in India and some from Mauritius and Ethiopia.
However, we want to raise about 12 million dollars locally by selling shares."
Although the company's initial plan was to issue bonds in order to raise the 12 million dollars locally, it could not do so in Ethiopia, as the issuance of bonds is restricted to government financial institutions.
"We have been advised to sell shares, instead," said Karuturi
"Our shares will be more sophisticated than common stock.
We will offer the best that there is in the absence of a stock market in Ethiopia."
The company will sell preferred shares at face value, which guarantees shareholders precedence on dividends, after all debts have been paid.
For those who want to sell their shares, they can redeem up to five per cent of the value of the total shares floated twice a year, according to Karuturi
Raising the 12 million dollars by selling shares in Ethiopia will garner local trust and business partners, which may help overturn the image of a "foreign company here to grab land" that many attach to Karuturi
, the company says.
has long been associated with land grabbing, a term given to commercial farm developers, especially from the Middle East and Asia that lease and buy large tracts of land in Sub-Sahran Africa at low prices.
"Although the current plan to float shares has nothing to do with the 'land grab' accusation, it is always good to overturn the image that we are all foreigners in Ethiopia," Karuturi
"Ethiopia has been good to me.
already secured 127 million Br in loans two months ago from the CBE
, which disbursed 35.9 million Br in loans and mobilized deposits of 86.5 million Br, the previous fiscal year.