The Hindu Business Line : Tata Chemicals, Total Produce to form 50:50 joint venture

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Tata Chemicals, Total Produce to form 50:50 joint venture

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To distribute fresh fruit and vegetables in India

Service tasks
To set up two experimental sourcing hubs in North India.
To cater to large buyers, including modern entrants such as Reliance Retail.
Jt venture expected to help farmers improve quality of produce.

MR HOMI KHUSROKHAN, Managing Director, Tata Chemicals Ltd.

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Mumbai Feb. 2 Tata Chemicals and Ireland-based Total Produce have agreed to forge a 50:50 joint venture company, which will distribute fresh fruits and vegetables in India.

With an authorised seed capital of Rs 26 crore, the new company is expected to set up two experimental sourcing hubs in North India.

Speaking to Business Line, Mr Homi Khusrokhan, Managing Director, Tata Chemicals Ltd, said, ``We would be adding to the farmer's incomes and aiding in the developmental activity of the retail sector at the back-end. Since almost 40 per cent of fresh produce goes waste in India, we would be benefiting farmers by being at the right end of the value chain.''

Targeting a range of wholesalers and retailers across the country, the JV's services would cater to anybody who is a large buyer of fruits and vegetables and this includes modern trade entrants such as Reliance Retail.

Reaching the farmer

Tata Chemicals already services farmers in states such as UP, Punjab, Bihar and Madhya Pradesh through its agri service centres — Tata Kisan Sansar (TKS).

Having set up 500 TKS, the company believes it has the advantage of being close to the farmer, which gives it an opportunity to bridge the gap between producer and end consumer.

``We are looking at having between 50 to 60 hubs within the next 3-5 years. The experience of our TKS network gained over the years coupled with expertise in agronomy, gives us an edge in this business," said Mr Khusrokhan.

Expected changes

The JV Company is expected to increase efficiencies, improve shelf life and reduce product loss in the supply chain. Besides, it would help Indian farmers to improve their incomes and develop the skills needed to raise the quality of Indian farm produce, said a news release from the joint venture partners.

Total Produce is Europe's largest fresh produce company and comprises the general produce business. The group generates a turnover in excess of $2.5 billion, has close to 3,900 employees and trades from more than 80 facilities throughout Europe.

It has operations in Ireland, the United Kingdom, Sweden, Denmark, Spain, Italy, Holland, Belgium, France, the Czech republic and Slovakia.

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