Keventer Agro to expand banana farming in East, North-East

Kolkata-based Keventer Agro Ltd is looking to take the popular ‘Dwarf Cavendish’ variety of bananas, also referred to as Grand Nain (G-9), to the eastern and north-eastern parts of the country. Plans are also afoot to export bananas to neighbouring countries.

The company, part of the ₹1,800-crore Keventer Group, is also exploring the possibility of going in for forward integration. It has instituted Keventer Assisted Farming (KAF) programme under which G-9 tissue culture plantlets will be provided to farmers to ensure a significant higher yield and enhanced fruit quality.

According to Sunil Kajaria, CEO, Keventer Foods, the company aims to cover around 2,000 acres of agricultural land for growing bananas, working with over 5,000 farmers. The company has already secured around 100 acres of land for growing the G-9 variety of bananas (locally known as the Singapori).

“The average yield of bananas in West Bengal is close to 26.83 tonnes per hectare; with G-9 the yields are expected to be significantly higher at around 50 tonnes/ha. These bananas also have the added advantage of being more consistent in size and quality,” Kajaria told BusinessLine .

Keventer Agro currently holds about one-third share of the city market for bananas.

The company currently buys bananas from close to 5,000 farmers in Nadia and Murshidabad (two major banana growing districts) at prevailing market price.

“Our model is simple; we guarantee 100 per cent procurement at the prevailing market price,” Kajaria said.

Keventer Agro has invested around ₹25 crore in setting up a new unit in Durgapur. “The Durgapur unit will be operational in the next six months and once that happens we will be able to service the Jharkhand market,” he said.

It currently has a ripening unit with a capacity of 50 tonnes per day at Barasat in North 24 Parganas and another unit with about 20 tpd at Siliguri in West Bengal.

It is also looking to expand its existing facility in Barasat. The company uses ethylene to ripen the bananas.

Talking about forward integration, Kajaria said, the company might look at getting into manufacturing of banana puree used for baby foods.

“We can think of forward integration once we are able to procure 100 per cent G-9 variety,” he said.

Keventer’s branded business, which includes Metro Dairy (pouch milk and ice cream), bananas and frozen foods account for nearly 60-70 per cent of its nearly ₹800 crore turnover.

Nearly 15-20 per cent comes from contract manufacturing of products such as Frooti and Appy and Appy Fizz for Parle. The rest comes from export of mango pulp and sesame seeds.

“Bananas currently account for 5-6 per cent of the total branded business; we expect it to increase to 8-9 per cent in the next one or two years,” he said.