By Vipin Agnihotri
While the Bharti group is mostly in the media at present for its Wal-Mart tie up and its stand on spectrum allocation in telecom, few realize that FieldFresh, which is a relatively obscure Bharti venture, could prove to be a vital component in the group’s diversification.
It is worth mentioning in this regard that Bharti FieldFresh has announced plans to get a turnover of Rs 5 billion by 2010. Generally speaking, FieldFresh is a 50:50 partnership venture between Sunil Mittal’s Bharti Enterprises and Del Monte Pacific India Limited started its corporate journey in 2004.
To get an edge over its rivals and global competition, the company has established the biggest agricultural R&D facility of its kind in more than 300 acres of land. According to sources, company also plans to engage farmers across India for contract farming.
In my opinion, FieldFresh expecting 30 per cent of revenues from exports needs to also focus on the domestic market. In the domestic market, ITC remains a major hurdle for them. ITC’s first mover advantage happens to be a major challenge for FieldFresh.
Indications are that FieldFresh aptly plans to move into food processing, which is still in its nascent stage. As the Bharti-Wal-Mart tie up is going slow and placing its focus more on cash and carry at this moment of time, investments into food processing in India would surely augur well for its retail foray and could in fact prove to be a cash cow in future too.
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