 "Ghodawat Agro expands floriculture portfolio")
Ghodawat Agro currently supplies three lakh stems of flowers every day. Agro business also offers herb and exotic vegetable portfolio that includes Chinese cabbage, iceberg lettuce, tarragon, ginger, chives and oregano.
Shrenik Ghodawat, director, Sanjay Ghodawat Group said, "We are consolidating the agri-business in terms of land bank. Initially we were focused doing projects only in Mahrashtra. Now, we have started looking outside Maharashtra to expand our footprint. Because of different climatic conditions in different states, we can grow more flowers. We have acquired 100 acres of land in Goa and will add another 100 acres in Goa again."
The company plans to to build one of the largest orchid farms in the world. India imports of orchid include Rs 250 crore every year. There is 30% duty on orchid.
"We would like to make India self sufficient in terms of orchid production. Along with orchid, there are other followers which are prawn to humid cliematic conditions. Goa is the ideal place to grow orchid farms due to highest humidity areas for orchid. We are currently 200 acres in terms of green houses. The idea is to add another 200 acres in the next 12 to 18 months," Ghodawat added.
Out of the total production of 3 lakh flowers, it exports 15% to markets like UK, Japan, Holland, Germany Australia and Greece. However, it is now eying fastest growing India market.
According to Shrenik, Indian consumers are now so much pron to flowers and it has became a symbol of expression. Europe alone consumes 70% of the world's total production of flowers.
He said, "India has a huge market potential for flowers and fillers for decoration purposes. We are also putting a small step in horticulture area. Within 48 hours of harvesting our flowers are available in any part of the world. Rose is the selling flower in the world and contributes 70% of total flower varities. We are projecting revenue of Rs 100 crore for this year. However, We are not revenue hungry for agro business but want to be a profitable company. We will grow those flowers which give more revenue per acre like orchid, carnation and gypsophila."
Additionally, it has developed 60 acres of ginger farm and some exotic herbs and vegetables near Kolhapur. India's floriculture industry has crossed Rs 9,000 core mark. Plus, rising demand from tier II and III cities apart from urban centres is likely to spur demand for roses and other flowers.
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Recently the group has forayed into businesses like FMCG and snack food. It is relying heavily on FMCG business and expects it to contribute around 40% of the total revenue. Its FMCG business has exponentially grown from Rs 40 lakh to Rs 5 crore in the last one year. The group is also foraying in to rice production business by setting up a rice mill with investment of Rs 75 crore.
It will produce branded non-Basmati and Basmati rice as well with the capacity of 8 tonns of rice per hour. The group turnover last fiscal was Rs 1,500 crore and expects to increase the top line up to Rs 6,000 by 2020. It is also looking at expanding its business network in the states like Karnataka, Goa, Chhattisgarh, Andhra Pradesh and Telangana.