22.11.13

Mahindra launches Saboro fruits

Mahindra will tie up with retail players across the country for in-store display of its Saboro brand of fruits.
In the next three years it will invest about 40 crore for its fruit business, according to Ashok Sharma, chief executive officer, of its agri and allied businesses.
The group had announced its diversification into fruit segment. Beginning with Hyderabad, it will make its brand of fruits available in various cities. In Hyderabad, it had tied up with Heritage Foods for the in-store display.
“We will expand in partnership with many retail outlets. But we will not have our own retail network for Saboro,” he said adding that it together with other partners will invest in cold storage facilities and other support infrastructure in view of the perishable nature.
The fruit market in India is estimated at Rs 2 lakh crore and there is the contribution of the organised players in this market is negligible, he said on the opportunities available for branded fruits. More people taking their health seriously will spur the demand for fruits, he said.
Mahindra, which invested about Rs 20 crore in this, is working with about 1,000 farmers and covering about 900 hectare. This is likely to triple in three years even as it will work to increase the productivity in the present farms by 15 to 20 per cent , Sharma said adding that it will bring grape in the ensuing season. Banana and mango will follow later.
“We are hoping to be Rs 300 crore in revenues in three years with 50 per cent coming from the domestic market and the other half from the exports,“ Sharma said adding that the produce will be priced about 10 to 15 per cent higher than the non-branded domestic fruits and about 10 per cent less than the prices of the imported fruits.
The group, through its Mahindra Shubhlabh Services Limited, is already into grape exports. It is eyeing revenues of Rs 90 crore this year from Rs 65 crore last year, he said.

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