M&M unit in tie-up with Belgian fresh produce firm UNIVEG

Mumbai: Giving a fresh impetus to its agri-business, Mahindra ShubhLabh Services, which is a subsidiary of Mahindra & Mahindra, has entered into a 60:40 joint venture with UNIVEG, a Belgium-based €3.2 billion fresh produce company, in which it will have a majority stake.

The joint venture company would be investing Rs. 30 crore in the first two years, with additional investments made by logistics and supply chain partners.

Focus on quality

The joint venture company would focus on developing a fresh fruit supply chain to provide high quality fruits for domestic and international markets.

Other than grapes, the venture would focus on select fruits such as bananas, apples, pears and citrus fruits.

Pawan Goenka, Executive Director, Mahindra & Mahindra said: “This joint venture would enable both companies to leverage each other’s strengths by further improving the fresh produce supply chain through various interventions and investments across India.”

In November 2013, Mahindra ShubhLabh Services launched its fresh fruit brand Saboro, for the health-conscious Indian consumer. Fruits from the new venture would also be marketed under the Saboro brand.

Right mix

Hein Deprez, Executive Chairman and major shareholder, UNIVEG Group added: “We consider this association the right mix of market presence and farmer connect. Mahindra’s reach, together with our proven technical expertise across six continents and 32 distribution centres in Europe, would be beneficial for all stakeholders”.

SMC Capital was the advisor to Mahindra ShubhLabh Services for the transaction.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.