Hyderabad, Sep 7: FMCG giant Britannia Industries Ltd plans to set up an agro-proccesing facility in Andhra Pradesh with an investment of Rs.126 crore in the first phase.

Britannia managing director Varun Berry, who called on Chief Minister N. Chandrababu Naidu in Vijayawada on Monday, said that the company is planning to commission the phase 1 of the project in Chittoor district with an investment of Rs. 125 crore by the end of 2016.

"We want to zero in on a location which helps us serve markets in Chennai and Bengaluru," a statement from the chief minister's office quoted Berry as saying.

Berry informed Naidu that 75 percent of the company's business comes from biscuits while the remaining business in cakes, dairy and rusks.

Naidu said the company could also explore opportunities in dairy sector. The chief minister said the state was focussing on agriculture and allied activities like horticulture, livestock, fisheries, dairy and poultry.