CAPESPAN, THE global fruit marketer as homespun as melktert and tomato bredie, has embarked on a major Indian initiative to establish a significant presence in that populous land. The Cape Townhead-quartered group has signed a memorandum of understanding with agribusiness giant Mahindra Shubhlaabh Services (MSSL) with a view to investigating the formation of a joint venture company in India. A 12-month pilot project was rolled out on April 1, drawing a team from MSSL to develop sufficient knowledge about the organised retail industry, garner knowledge about Indian product supply dynamics, determine a brand strategy and develop a fiveyear business plan for the possible five-year business venture. Louis Kriel, Capespan Fruit Division CFO, says MSSL will be primarily responsible for executing the pilot plan and arranging necessary resources. Capespan, on the other hand, will provide the technical commercial support and expertise for grapes, citrus and apples, develop imports into India from South Africa and other source countries and engage with retailers to determine their long-term needs. At the same time, responsibility will rest on both parties to further develop export opportunities for Indian produce. If the joint venture plan proves successful, the two companies will either enter into a mutually exclusive 50/50 tie-up in India, the JV establishing itself as a receiver, handler and distributor of selected produce into the emerging retail food and service sector. A subsidiary of the giant Mahindra Group, MSSL currently produces fruit and vegetables in India from Himachal, Punjab, Maharashtra and Madyah Pradesh, for the domestic and export market, over and above providing farm management services to 9000 farmers who provide fruit for domestic sales and exports. Kriel, pointing to India and China as priority markets with tremendous investment potential, says MSSL and Capespan want to lead the way in India’s fresh produce market.
