Belgian produce giant Univeg and Indian Mahindra ShubhLabh Services are to form a venture to develop a fresh fruit supply chain to serve the Indian and international markets.
Under the agreement, Mahindra ShubhLabh Services, part of Indian conglomerate Mahindra Group, will hold 60% of in the venture with Univeg taking 40%.
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Univeg is expected to provide “technical know-how and best practice in quality control”, post-harvest handling of fresh produce, ripening and farm agronomy practices and procedures to meet international quality standards.
Mahindra will assist in arranging contract farming agreements across India, using its domestic marketing and distribution network and providing the local licensing and support services.
With an aim to getting customers better-quality fresh produce on time, the two will set up logistics and supply chain facilities in strategic locations across India.
Dr. Pawan Goenka, executive director and president, automotive and farm equipment sectors of the conglomerate’s Mahindra & Mahindra unit, said: “This JV will enable both companies to leverage each other’s strengths thereby providing a win-win for farmers and end consumers alike. Going forward, we plan to strengthen our partnership by further improving the fresh produce supply chain through various interventions and investments across India.”
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By GlobalDataHein Deprez, executive chairman of Univeg, added: “We consider this association the right mix of market presence and farmer connect. Mahindra’s reach, together with our proven technical expertise across six continents and 32 distribution centres in Europe will be beneficial for all stakeholders.”
