More entrepreneurs to enter fruits and vegetables market, says Mother Dairy MD

He said that prices are expected to come down and that would have an impact on the topline

The Indian fruits and vegetables market would see an agri eco-system developed with several entrepreneurs bringing in technology and value addition, said S Nagarajan, managing-director, Mother Dairy Fruit & Vegetable Pvt Ltd. Speaking about the markets for the company next year, he said that the prices are expected to come down which would have an impact on the topline, and it has to be maintained through increase in volume.

Speaking to reporters on the sidelines of the Annual Convention of Madras Management Association, he said, "Some of the initiative which the government is taking will actually take off this growth in future with the new start-ups coming up...Finance is not such a serious issue, once there is a workable idea."

 

With online offering disruptive technology, hurdles like access to the market will come down and another three to four years of struggle will make the whole system of agriculture change drastically.

The prices of fruits and vegetables has moved up. With a little bit of conscious development of productivity, there is huge scope for development. Fruits and vegetable market is anticipated to grow at a rate of 15-20 per cent every year for next five years as the consumption is expected to go up.

"Over the next few years, a lot of agri eco-system related entrepreneurs will come. The small land holding will not change. But the growth will be from how do you make technology available for the small farmer," he added. In the dairy segment, from the year 2010, when the prices went up, the farmer's prices also went up. It is reaching a threshold where dairy will move from subsistence farming to income generating farming.

With the commodity issues and global market challenges, the prices of company's products are expected to come down and the ability to add topline growth is going to be tough. This means growth has to come from volume and efficiency.

"I may be lucky the top line growth is 8-12 per cent. But my suspicion is volume growth will be better than that. Prices are falling," he said.

Commenting on the reports on global beverages giant Coca Cola launching dairy products in India, he said that entry of more players would grow the market and help to increase the value added products in the market.