M&M Group firm Mahindra ShubhLabh Services signed a joint venture of 60:40 with Belgium-based Univeg on 14 April 2014. The joint venture will focus on developing the supply chain and sell fresh fruits in the domestic and international markets.
The Joint Venture (JV) will invest 50 crore rupees to 75 crore rupees revenue within 3-5 years and targeted 1 lakh tonne of fruits supply. Mahindra will invest 30 crore rupees in the JV in building up supply chain. The pact also provides a win-win for farmers and end consumers too.
The Saboro brand is the first branded fruit vendor launched by Mahindra group in November 2013. The joint venture will continue to sell fruits under the Saboro brand. Currently, the domestic fruits market stands at 30 billion dollar of which organized players accounts for only around 5 percent or 1.5 billion dollars.
Under the Joint Venture:
Univeg will provide technical knowhow and best practices in quality control, post harvest handling of fresh produce, ripening process, and farm agronomy practices and procedures to meet international quality standards.
Mahindra ShubhLabh will assist in arranging contract farming agreements across India while leveraging its domestic marketing and distribution network and providing the required local licensing and support services.
What: signed a joint venture
When: 14 April 2014