• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Mohan Padmanabhan

Barasat area being considered for pilot project

Kolkata , Nov. 12

The first phase of ITC Ltd's farm retail foray into Bengal, a key element of the Rs 1,250-crore investment package worked out by the company for the State, is expected to be rolled out by the middle of 2007.

The vegetable-retail module, both procurement and distribution, planned on a pilot basis (some 30 tpd initially), and proposed along the lines of similar projects being taken up in Hyderabad, Pune and Punjab, are estimated to cost Rs 15-20 crore each.

The initial project is Kolkata-centric, and for the pilot, Barasat area in North 24 Parganas is being considered.

The combo module will include a farm interface through a demonstration outlet to impart knowledge to the farmer on both production and handling of produce, cold chain and pack house. In the last phase will come the wholesalers and retailers.

Talking to Business Line from his office in Hyderabad, Mr S. Sivakumar, CEO of IBD division, said field teams of the company have already started work on the Kolkata retail project.

He said the proposed modules, resting on strong backward linkages to complete the total value chain engagement with the Bengal farmers, are based on the large opportunities before the corporate.

The wholesale markets are clustered around the central part of Kolkata - between Sealdah and Bara Bazaar.

The second phase plan involves creation of a farm produce terminal market in Bengal, with Kolkata as the hub.

"But, for this to happen, the proposed Government of India scheme on this will have to be announced first."

Explaining the proposed three-part combo module, Mr Sivakumar said all three key elements of farm R&D and technology, cold chain, collection centres and pack houses with required logistics back-up, and wholesale-retail centres are built on the cash and carry model.

The underlying value proposition for the Bengal farm products' retailers, according to a preliminary field survey carried out by Indian Agribusiness Systems Pvt Ltd for ITC-IBD, will be grading and sorting, cleaning of farm produce to prevent weight loss, accurate weighing, competitive pricing and faster purchasing.

It is learnt that retailers now spend 1.5 to 2 hours to complete their basket of 5-6 products. Credit, the survey points out, has been articulated as a major concern of the retail trade.

The project also includes a B2C model, serving both the retailer and the consumer. According to informed sources, the company has decided to pitch for choupal fresh vegetables and other farm produce including fruits, to take advantage of the State's rich agricultural produce. A sizeable portion of this wealth is now drained out on account of post-harvest losses, largely owing to lack of cold storage chains and temperature-controlled pack houses.

More Stories on : Diversification | Horticulture/Fruits & Vegetables | Retailing | Diversified | I T C Ltd | West Bengal

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
New fibre line for AP Paper Mill

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line