Mahindras plan to sell branded fruit

Mahindra and Mahindra (M&M) is planning to sell fruits and vegetables under its own brand name "� Mahindra. The company is conducting a pilot project in 100 acres in Punjab and Maharashtra, where it is engaged in contract farming and contract services.

"We have received expressions of interest from three-to-four large retail players to supply fresh produce. We have initiated cultivation of fruits and vegetables, which will eventually be expanded to cater to domestic organised retail. As a back-end supplier, we will have to make substantial supply to the retail sector in line with the front-end demand," said Vikram Puri, head, agri business, M&M, and CEO, Mahindra Shubh Labh Services (MSSL).

Puri said the company would like to partner with serious retail players who can indicate fresh requirements with conclusiveness. This would help the company plan farm operations by type and variety, calender crops and develop multiple local supply points across the country.

"The company is looking at partnering with retailers with whom it can build economies of scale with the objective of delivering value to the end customer," he said.

"We will tie up with somebody who can jointly develop the supply chain. We will keep in mind the welfare of 30,000 MSSL farmers we have been associated with all over the country while tying up with any retailer," he said.

On the export front, Puri said the company would extend the product range to include mango, banana and citrus fruits.

He said the company would ship 15 containers of pomegranate and 125 containers of grape under cool chain to Europe, the Gulf and south-east Asia this year. It plans to export 5,000 tonne of pomegranate and grapes, which will fetch Rs 75 crore over three years.

Puri said the company would sell fruits, which have sustainable competitive advantage in international markets such as mango, banana (processed pulps), orange and guava. The company may also set up pack houses, cold storages and food-processing centres if opportunities come along.

At present, the company uses leased cold storages and pack houses.

Currently, the company exports 95 per cent of its produce to Europe, with the UK being the biggest importer and the rest goes to the West Asia and South-East Asia. It sells to several European retail chains.

He said the company was engaging in contract farming where it could buy back the entire produce and create markets for them.

The company is also engaged in contract services, covering nearly 80,000 acres in Punjab alone for promoting low water consumption crops in the northern districts.

Puri denied any plans in the front-end retailing, saying it would focus more on the rural part of the country, with its agri inputs including rural finance, seeds and farm equipment.

He said M&M was strongly focused on the rural market with a network of 750 distributors across the country and sold 20 lakh tractors in the last 60 years.

The company's rural NBFC arm Mahindra Finance was listed in 2006, increasing the reach of the company.