Apeda scripts global agri export play

Embarks on strategy to link local firms with global retail giants

The Agricultural and Processed Food Products Export Development Authority (Apeda), under the ministry of commerce and industry, has embarked on a 'direct to retailer' strategy to promote agri exports by linking up major domestic companies with global retail giants.

K S Money, chairman, said major Indian companies which had forayed into agri business were already involved in the project.

"ITC, Dabur, Pepsi (India), Amul, Field Fresh Foods (Bharti's venture with EL Rothschild group), Essar among others have been associated with the study that will be conducted by KSA Technopak, our consultant for the strategy," Money said.

Other major names such as Reliance and Adani would also be contacted for the project, he added.

The first phase of the study would address macro issues, wherein global retail giants Walmart-Asda, Carrefour, Tesco, Aldi, Lidl would be covered to examine their food item requirement vis-à-vis the supply potential of local firms.

Ten major Indian corporates would be shortlisted and the second phase of the study would involve developing viable business proposition for the same, he added.

The total cost of study would be Rs 90 lakh, of which Rs 75 lakh will be given by Apeda, the remaining would come from domestic firms.

Successful implementation of the strategy would generate investment requirement of Rs 750 crore for developing backward linkages and other infrastructure support.

"Successful implementation of the strategy will generate additional export potential in the ratio of 1:5, which translates into export potential of at least Rs 3,750 crore," said Money.

According to him, more than 70 per cent of the market in food items was dominated by retail giants the European market and the strategy was to tap those major consumers.

"Consolidating of food item buyers in the recent trend and Apeda's strategy would be bag those retail giants as major consumers," he added.