The Hindu Business Line : Aadhar to be sourcing hub for Future group retail formats

Reaching out to 50,000 farmers every month, the company has already employed 300 people to directly access the produce of farmers across 2,000-odd villages.

Purvita Chatterjee

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Mumbai, July 7 Graduating from providing agri-services to direct sourcing from farmers, Aadhar Retailing is now getting into the business of output management with farmers across the country. With the Future Group owing a 70 per cent stake in Godrej Aadhar, the newly formed company, Aadhar, would now serve as a procurement hub for the Future Group’s retail formats such as Food Bazaar and KB’s Fair Price and even become supplier to other retailers across the country.

Mr Arvind Chaudhary, Chief Executive Officer, Aadhar Retailing, told Business Line, “We have now started buying the farmers’ produce and getting into the business of output management. With the intention of selling the farmers’ produce to other retailers, we would be adding one crop after another and help them in managing their produce,” stated Mr Chaudhary.

Reaching out to 50,000 farmers every month, the company has already employed 300 people to directly access the produce of farmers across 2,000-odd villages in the country. The States where farmers are being approached include Punjab, Haryana, Maharashtra and Gujarat.

With the Future Group’s cash-and-carry format on the backburner, sourcing from farmers and helping them sell their produce to other retailers is being seen as an extension of the same format by analysts.

Not wanting to be compared with ITC’s e-Choupal, Aadhar Retailing believes it would operate in the business of providing solutions for farmers. “We would operate on a different model from e-Choupal as we would be advising farmers on what to produce and giving services such as soil testing and weather prediction facilities. The purpose is to become a one-stop-shop in the rural areas,” says Mr Chaudhary.

Fresh inputs

Meanwhile, the existing 66 Godrej Aadhar outlets would also be stocking the Future Group’s private labels and financial products to extend its current portfolio. New brands such as Koryo (for consumer durables) and food brands such as Tasty Treat and Fresh ’N Pure would be making an appearance at the Aadhar outlets.

Besides, with the Future Group having forged strategic alliances with players such as GlaxoSmithKline to develop the Gopika brand of ghee, its outlets would also see the brand making an appearance at Aadhar outlets. Financial products, such as insurance-based products of Future Generalli, would also get sold at the outlets.

Besides, there is also a possibility of the Future Card (the Future Group’s loyalty cum credit card) being introduced.