Champion Agro Ltd plans to open 400 agro-malls in North India during the next 3 years, 25 of these in 2012-13.
While real estate's commercial and housing segments are facing crises, at least one segment in this sector is still holding out: agro malls. A number of Indian majors, including ITC and Godrej, have set up one-stop-shops providing agricultural solutions to farmers in the different states.
A state-level player, Champion Agro Ltd, plans to open nearly 400 agro-malls in North India in the next three years, 25 of these in 2012-13. These would provide end-to-end ground-level support to the farmers and improve their profitability and productivity.
Champion Agro aims at empowering farmers and meeting the needs of rural households by providing access to agricultural products, services and consultancy, its founder says. “Players like Godrej and ITC are different from us in that our malls provide a multi-product range and we go to the farmers and farms, rather than having them come to us.”
A PIONEER
Rajkot-based Champion Agro, a pioneer in agricultural retail, has so far established 35 such one-stop-shops, called Champion Agro World (CAW), across the Saurashtra region of Gujarat. The company was recently awarded the prestigious Asia Pacific Entrepreneurship Award 2011.
It commenced its northern operations with a marketing office in Delhi and another in Ludhiana. CAWs are being planned in Haryana, Delhi, Rajasthan, Punjab and some other states.
A CAW, spread across 1,000-1,500 square feet of leased space, requires an investment of Rs 15 to 20 lakh, and working capital up to Rs 1 crore. Champion Agro plans to invest nearly Rs 100 crore, and recruit 200 people in the northward drive, which it would follow up by opening cold chains and ripening facilities, said Mr Dhirubhai Patel, Chairman and Managing Director.
The company had started its operations in the early 1990s with manufacturing facilities for the agricultural irrigation system like including various types of pumps, motors etc. In order to facilitate the farmers' varied needs, it became a one-stop-shop providing complete solutions in agriculture, and has set up a chain of agri-business centres and agri-clinics under the brand-name of CAW, since 2005.
This chain provides free agricultural consultancy services ranging from sowing to harvesting.
LEASE FARMING
The company, aiming to integrate both forward and backward, from farm to fork, will have 20 district-level malls in northern states, agri excellence centres and integrated storage facilities, which will become a hub as well as a connecting point for nearby centres.
Also, it is venturing into processing of fruits and vegetables under the “Champion Fresh” brand. It has acquired 500 acres of land in Bhavnagar district as part of having its own horticultural farm in 1,000 acres and also plans for contract and lease farming in another 26,000 acres.
Champion Agro, which has its own cold chain facilities at three places in Gujarat, would also set up cold chain facilities in Himachal Pradesh, Punjab and Delhi. Established in the countryside, the Champion agro mall offers inputs like fertilisers, seeds, pesticides, farm equipments, veterinary products, animal feed and irrigation items, besides agronomic services with teams of extension workers and agronomists, like soil testing, crop inspection, weather forecasts etc.
Its financial services include farm credit, life insurance, medical insurance, crop loan, term loan, etc. In addition, it also provides access to output markets by helping farm produce buyback opportunities, commodity trading information and updating the farmers with new development and research in agriculture, government schemes and subsidies, market prices, among others.
Each CAW centre caters to communities within a 25-30 km periphery and impacts the life of approximately 50,000 households.