Tags:
Journalism of Courage
The global retail who’s who—including Carrefour, Auchan, EDEKA, Eroski, Superunie, El Corte Ingles and Coop — will soon sit down for a matchmaking session with domestic giants Field Fresh, Heritage, Godrej Agrovet, Tatas, Essar Agrotech, Global Green Company and Shriram Chemicals to explore tie-ups in the food retail sector.
This is the largest ever matchmaking session between multinationals and leading Indian players in the food retail sector. As the tie-ups are in the back-end and food processing sector, where FDI is permitted up to 100 per cent, sourcing capital will not be a problem for the partners.
The unprecedented meet, catalysed by the Centre, builds on the strength of the Indian agro chain to meet global demand. According to sources in Agricultural and Processed Food Products Export Development Authority (Apeda), which is acting as facilitator, the foreign companies have sent written expressions of interest for the project.
The projected tie-ups make sense in the context of the Government’s commitment to boost agriculture. Exports from the sector are crucial if farmers are to realise significant value addition. Currently, a large proportion of vegetables and other commodities are spoilt for lack of cold storage facilities.
The initiative comes under Apeda’s direct retailers’ project. Initial investment worth at least Rs 750 crore would be pumped into developing backward linkages, to generate incremental exports worth Rs 6,000 crore, and create employment for over a million people. The Government is looking at the ability of corporates to invest in R&D, back-to-front infrastructure and knowledgeable teams, sources added.
