News: Bharti-Tesco tie up with Freshtrop
(NDTV 24/04/2006) Mumbai - The country's top retailers are hunting for small companies that will fill the missing link between their mega brands and connect with the real farmer or producer.
The Bharti and Tesco combine have narrowed in on Freshtrop Fruits for sourcing grapes and pomegranates for their domestic foray.
Freshtrop is a small fruit exporting company that's been supplying fresh fruit to global retail majors.
Now Freshtrop is looking inward by riding on one of its foreign clients Tesco which has tied-up with Bharti to setup stores across the country.
Freshtrop will set up the distribution backbone for supplying fresh fruits to Tesco-Bharti. The tie-up will also be aimed at the export market.
Sweet deal
The sweet deal will help build the Freshtrop brand which is already a trusted name among big European chains.
Tesco is a big buyer, accounting for about seven per cent of Freshtrop's exports. Freshtrop also exports to Wal-Mart, St Morrissons and Marks & Spencer.
The company's exports have been growing at about 33 per cent every year and it hopes to increase that to Rs 35 crore in this fiscal.
"There are a lot of players in this market, not just the Mittals. We think even the Reliance lot would be interested. Anyone in retail will drift into the fruit business as it's upcoming," said Jayant Manglik, RR Equity Broker.
Right now most of Freshtrop's revenues come from exporting grapes.
But in the days ahead, as the domestic market picks up and more and more big buyers enter the market Freshtrop expects to start selling a much larger variety of fruits.
Imported fruits have flooded urban India in the past few years as people with cash to spare look to buy better quality fruits.
This is where big retailers and food giants are hoping to make their money and smaller food processing firms are likely to make the most of this.
The Bharti and Tesco combine have narrowed in on Freshtrop Fruits for sourcing grapes and pomegranates for their domestic foray.
Freshtrop is a small fruit exporting company that's been supplying fresh fruit to global retail majors.
Now Freshtrop is looking inward by riding on one of its foreign clients Tesco which has tied-up with Bharti to setup stores across the country.
Freshtrop will set up the distribution backbone for supplying fresh fruits to Tesco-Bharti. The tie-up will also be aimed at the export market.
Sweet deal
The sweet deal will help build the Freshtrop brand which is already a trusted name among big European chains.
Tesco is a big buyer, accounting for about seven per cent of Freshtrop's exports. Freshtrop also exports to Wal-Mart, St Morrissons and Marks & Spencer.
The company's exports have been growing at about 33 per cent every year and it hopes to increase that to Rs 35 crore in this fiscal.
"There are a lot of players in this market, not just the Mittals. We think even the Reliance lot would be interested. Anyone in retail will drift into the fruit business as it's upcoming," said Jayant Manglik, RR Equity Broker.
Right now most of Freshtrop's revenues come from exporting grapes.
But in the days ahead, as the domestic market picks up and more and more big buyers enter the market Freshtrop expects to start selling a much larger variety of fruits.
Imported fruits have flooded urban India in the past few years as people with cash to spare look to buy better quality fruits.
This is where big retailers and food giants are hoping to make their money and smaller food processing firms are likely to make the most of this.
posted by InCar Group Press Room at 00:08
0 Comments:
Post a Comment
<< Home