Subhiksha to source 50% vegetables from Nashik

Subhiksha, the Chennai-based food, grocery and pharmacy discount retail chain, is planning to source half of its vegetables and fruits (V&F) for its retail stores across the country, from Nashik.

The company will shortly set up a Centralised Processing Unit (CPU) at Nashik for the purpose.

Till date, Subhiksha has 750 retail stores across the country, including 105 in Maharashtra "" 75 in Mumbai, 15 in Pune, six in Nashik and six in Aurangabad.

Subhiksha is planning to touch the 1,000 retail stores mark by adding 250 more retail stores within the next two or three months. Each retail store has 4,000 items including Fast Moving Consumers Goods (FMCGs), pharma, vegetables and fruits, and mobile accessories.

Speaking to Business Standard, the senior company official said, "We have a special vegetables and fruits section in each outlet and we provide fresh and good quality vegetables and fruits. Presently, we source 20 per cent of the total vegetables and fruits required for our retail stores across the country, from Nashik. We procure V&F from Nashik farmers through contract farming at an average rate of Rs 25 per kg."

Each retail store of Subhiksha requires an average of 5-6 tonnes of vegetables and fruits everyday.

As the number of retail stores will touch 1,000 in the next two or three months, the chain will require an average of 6,000 tonnes of V&F everyday. Nashik is known for its onion, grapes, keshar mango, pomegranates, tomatoes and many other vegetables.

Considering this, it is planning to source 50 per cent of its V&F required for its stores, directly from the Nashik farmers through contract farming and will supply it to all the retail stores. We will soon set up a Centralised Processing Unit (CPU) at Nashik for the purpose which will include a warehouse.

The company will procure an average of 3,000 tonnes of V&F directly from Nashik farmers through contract farming.