Farm fresh idea

When Godrej Agrovet Ltd. opened its first branded fruit and vegetable retail outlet, Nature's Basket, at Mumbai's Warden road in January, it was not ready for such a staggering consumer response.

Says the company's executive vice president, R S Vijan: "Overwhelmed by the response to the first store, we started a second one in July at Cuffe Parade. A third one is coming up at Lokhandwala this month. Our goal is to open eight more by May 2006."

Launched by the Rs 800 crore Godrej Agrovet Limited (GAVL), which is part of the Rs 5,500 crore Godrej group, Nature's Basket evolved as GAVL was "keen to introduce the 'farm-to-plate' concept to Mumbaikars," says Vijan. Nature's Basket stocks a variety of local and 'exotic' farm produce: vegetables, fruits, herbs and dairy products.

The brightly painted store stocks vegetables such as artichokes, asparagus, broccoli, bamboo shoots and red cabbage. It also sells fruits like kiwi, tangerine, cherries and apples from different countries and herbs like oregano, rosemary, thyme and watercress.

Its success is pushing GAVL to set up Nature's Basket outlets in other states as well. In the next five years, GAVL would like to roll out the retail brand in the metros and in big towns like Delhi, Chennai, Bangalore, Ahmedabad and Pune.

The target is 100 stores in five years with a turnover between Rs 350 and Rs 500 crore. The company also intends to provide specialty foods not available in the Indian market.

The retail venture seems to be a natural extension of Godrej Agrovet's which has interests in poultry, cattle and aqua animal feed. It's poultry brand Real Good Chicken was launched in 1999. The company also entered agricultural retailing in 2004 with Aadhar, a rural retailing unit that stocks products such as animal feeds, agricultural appliances, pesticides, fertilisers, soaps, toiletries and durables. There are 11 Aadhar centres in Maharashtra, Gujarat, Punjab, Haryana and Andhra Pradesh.

Needless to say that Nature's Basket made sense as GAVL has been closely working with farmers for over three decades. "The quality of the produce, its production process and market access to farmers always interested us.

To complete the loop, we decided to buy the produce from the farmers and sell in the urban markets. That's how Nature's Basket was born," says Vijan.

Initially, the company wanted to retail via mobile vans in up-market locations. But municipal restrictions did not allow that. Today, the store has a juice bar, a florist and a nutritionist.

But why would a consumer shop at the store when he can buy fruits and veggies from the local vendor? Says Vijan: "We buy in bulk directly from the farmer, eliminate the middle-man and pass on the price benefit to the consumer. Besides we are quality conscious."