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K.V. Kurmanath

To use milk vendors for home delivery initiative

Hyderabad April 19 Fresh@, a food and grocery retail initiative of Heritage Foods (India) Ltd, is in the process of developing a 5,000-acre cluster farming complex to feed the retail network that will have 100 stores in the next few months.

The company, which runs 12 outlets in Hyderabad and three in Bangalore, currently has a cluster farming area of 400 acres, mostly in Chittoor in Andhra Pradesh and Kolar district in Karnataka.

Besides expanding further in Hyderabad and Bangalore, the company would enter the Chennai market soon. "We will open Fresh@ outlets in Chennai in the next four months," Mr S. Jagdish, Vice-President (Retail Division) of Heritage Foods, told Business Line.

The company would open its own distribution centre that would take care of warehousing and stock management activities.

For now, the company plans to confine itself to these three markets. "In the later part of the year, we will decide whether to enter tier-II cities or to open outlets in other major cities," he said.

Heritage, a leading dairy player that processes and distributes over seven lakh litres a day and touches base with 2.5 lakh farmers, is planning to use this extensive network to push Fresh@ sales. "Beginning May 1, we are going to launch an aggressive home delivery campaign," Mr Jagdish said.

While delivering the milk packets, the delivery boys would pick orders from the customers and route them to the nearest Fresh@ outlet.

The company is also planning to expand the basket of private label products at Fresh@ outlets. "At present, we are selling private label products in staples through the Farmers' Pride brand," he said.

More Stories on : Retailing | Dairy & Dairy Products

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