The Hindu Business Line : Now, agri-supermarts from Escorts

THE Rs 1,500-crore Escorts Agri Machinery Group, a strategic business unit of Escorts Ltd is set to roll out a novel initiative — rural supermarts. This initiative is part of its contract manufacturing strategy.

According to Mr Vinay Upadhyay, Head (Marketing Services), Escorts Agri Machinery Group, the company will launch retail outlets, which would sell all inputs/tools related to farming in rural areas.

``These would include items such as seeds, pesticides, fertilisers, farm equipment and even agri-machinery. In addition, if the shelf space permits, we may even retail household items. Also, we will look to provide finance and insurance schemes to farmers through the outlets. For finance, we are presently speaking to several players including ICICI. However, we will follow a regional model in this regard, so it would differ from State to State,'' Mr Upadhyay said. These outlets will serve as one-stop shops for the farmer to supplement all his needs.

Though it could be about 6-8 months before the first such outlet is up and running, Escorts will first introduce the concept in Punjab, where it has recently entered into an contract manufacturing agreement with basmati rice exporters.

The outlets would subsequently be launched in Uttaranchal, Western UP, and Madhya Pradesh.

In the first phase, the company is focusing on about 10,000 farmers in Punjab who are growing basmati rice.

Escorts is currently in the process of finalising a brand name for the outlets.

Not revealing Escorts' outlay in the retail initiative, Mr Upadhyay said around Rs 100 crore would be invested over the next three years on various contract farming initiatives.

Escorts' contract manufacturing agreement with the three basmati rice exporters entails for export of nearly 60,000 tonnes of basmati rice to be produced at the 60,000 acres in eight districts of Punjab.

The exporters are Satnam Overseas, Amira Foods and DD International.

This contract manufacturing initiative is expected to be taken to more states subsequently and cover crops such as durum wheat, maize, barley and probably cotton.

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Now, agri-supermarts from Escorts