In the Indian context it was once asked why no established business houses like Ambanis, Tatas, Birlas, Mundhras and other leading industrialists were not taking any interest in investing in food processing sector which was dominated by transnational companies or their surrogates like Lever, Nestle, Britannia, etc. True that in spite of the presence of these global giants, the small and micro enterprises were still accounting for large volume of processed foods marketed in the country. Probably one of the main reasons could be the relatively high risk involved in dealing with perishable foods compounded by traditional food habits in Indian population, vast majority of whom shun processed foods, preferring to cook at home which is much cheaper and affordable. How ever this trend seems to be changing and entry of some of these domestic players more recently in food retailing augurs well for the country. How far they will be able to sustain in the market, outliving the vibrant Mom & Pop shops controlling more than 95% of the retail market and whether they will ever achieve backward integration with farmers of the country remains to be seen. It is in this context one has to look at the attempts by a few upstarts to establish agri-business which if successful can be a fore runner of more such efforts for lateral entry into food business. Here is the story of a successful IT entrepreneur with some vision to try his managerial and entrepreneurial acumen to establish himself as a significant player in food area.
"To begin with, the company has already invested about Rs 20 crore in INI Farms, involved in pomegranate plantations on over 1,000 acres across Maharashtra and Madhya Pradesh. The project involves doubling productivity and increasing the export content from 40 per cent of the total production now to over 70 per cent with the help of modern farming and post-harvest technologies. The idea is to create a pomegranate brand. "There are huge opportunities in agriculture and health care. Nobody has positioned these sectors as an exciting opportunity when it comes to business, even though the margins are as high as 45-70 per cent. If two or three people start glamorising the industry over the next two-three years, we'll be able to look at scale and brand building for such sectors," he adds. Screwvala is also looking at opportunities in rural health care, a sunshine industry that remains neglected. "That's the opportunity. Chances are you are going to be the only guy in this business. It's true there is a shortage of qualified doctors, but basic amenities in health care like pathology labs don't need MBBS doctors," he says. The second part of his dream project, for which he has himself committed Rs 250 crore over the next five years, is even more ambitious. His foundation called Share has finalised a blueprint to "improve the livelihood and empower people" in seven villages of Maharashtra, covering a million people across eight talukas and five districts. "Our idea is not to donate money but to help the villagers become independent enough to earn their livelihood. We want to have an exit strategy where we help them for the first two years by giving them enough push. Then, they take it over themselves," he adds.
What is striking here is the love and affinity shown by this investor for agriculture and health care after understanding the peculiar situation that prevails in these areas in India. The fact that he is committing a substantial amount of his own money to further his ambition speaks volume about his sincerity and missionary zeal. It is amazing that he has zeroed in on Pomegranate cultivation which has tremendous potential to be a health food in the coming years due to its value as a source of highly active antioxidants. There is a similar parallel in Amla cultivation in Maharashtra by Jain Irrigation of Jalgaon which has revolutionized the production of Indian Gooseberry, one of the much sought after health fruits with thousands of years of history and heritage behind it, beyond recognition. India needs such missionary zeal from local players with resources and vision to change the agriculture and horticulture scenario in the country.
V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com
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