Namdhari Seeds, the Bangalore-based Rs 100 crore horticulture firm, is set to raise around Rs 120 crore for its unit - Namdhari’s Fresh, which is into retail, wholesale and export of organically-grown fresh vegetables and fruits. Namdhari Seeds is a 25 year old firm in the Indian vegetable seed industry and an exporter of vegetables and flower seeds.
Namdhari’s Fresh handles more than a thousand tonnes of fresh vegetables and fruits at domestic and international market. The produce is mainly exported to Europe, Australia and West Asia, and this unit is certified as European Retailers Certified Vegetable Growing and Exporting Firm.
Namdhari’s Fresh, a unit of Namdhari, was started in 2000 in Bangalore and presently, more than 40 different vegetables and fruits are being cultivated by Namdhari’s Fresh at various productions centres across the country for domestic retail and exports. The company currently has 23 retail outlets and is looking to increase this number to 100 in two year’s time in South India.
Industry sources indicate that Namdhari’s Fresh has a topline of around Rs 30 crore and is EBIDTA positive. Estimates indicate that it costs around Rs 50 lakh to set up a store and the company will not expand through the franchisee route.
Industry sources indicate that there is a possibility of the Namdhari Seeds setting up a holding company to raise the private equity.
“If the company intends to raise equity at the retail chain itself, valuations may not match up for the sum they want to raise. So an option before them is to set up a holding firm including the seeds business and raise money at reasonable valuations,” an industry source detailed. When contacted, Namdhari Seeds officials offered not to comment.
Namdhari Seeds was founded by Thakur Uday Singh in 1985 at Urgahalli, Bidadi Hobli in Bangalore Dist for contract production of vegetable seeds for export from India. In the due course of time, a separate division was created for Research & Development of hybrid vegetable seeds, suitable for Indian agro-climatic conditions. Later on Namdhari Seeds Pvt Ltd, was formed for domestic marketing of developed products.
Sources further indicate that this company is getting into Bt cotton seeds business which is expected to be another growth driver for this firm.
