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.
Capespan plans JV in India
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