News: Tatas enter fresh food business, target supermarkets

(PTI 02/02/2007) Mumbai - Fertilisers maker Tata Chemicals entered the multi-billion dollar fresh foods business in partnership with Europe's Total Produce to source and supply edibles to growing number of supermarkets, besides wholesalers.

The 50:50 joint venture company would create state-of- the-art distribution facilities across India targeting the growing organised retail industry, including western-style food retail joints, in the country.

However, the JV company has no plans to enter retail as of now.

"Retailing is not part of our plans. The front-end is more glamorous, but the most valuable part is the rear-end (supply chain)... We are just scratching the surface," Tata Chemicals Ltd Managing Director Homi Khusrokhan told PTI.

He said the fresh produce business in India was estimated to be worth Rs 1,00,000 crore, excluding the 40 per cent wastage due to lack of infrastructure like cold storage.

"We will supply to any customer who comes to us," he said, when asked if the JV would engage in business with Reliance Retail's fresh foods stores - Reliance Fresh.

Reliance Retail has set up its own supply chain in the country as part of its farm-to-fork project, but also imports some products from abroad.

TCL's partner Total Produce is Europe's largest fresh produce firm and operates through its subsidiaries, joint ventures and associates from 66 retail and wholesale distribution facilities.

It has five ancillary offices throughout Europe with facilities in Ireland, the United Kingdom, Sweden, Denmark, Spain, Italy, Holland, Belgium, France, the Czech Republic and Slovakia.