
Since marketing is not your core business, how do you intend to market the fruits procured by FHEL?
We have to rely on some associates who will market our fruit in other states. We have three marketing associates. And our fruits even today are going to Chennai, Hyderabad, Mumbai and other places in a limited quantity. But we will finally have tie-ups with retail chains, for instance WalMart, Subhiksha, Mother Dairy and Reliance Fresh, with whom we are in dialogue. As retail demand picks up, we should be able to provide those fruits. With Bharti-WalMart, we are on the verge of a commercial agreement. All over India, we will be supplying fruits to Bharti-WalMart Retail.
Given the growth projected for modern retailing, do you think the spurt in demand for cold chain solutions is driven by it?
It is not completely driven by the growth of organised retail. The basic purpose of setting up cold chain logistics in India was the low remuneration which the farmer was getting for his produce... the consumer too was not getting good quality fruit at the right price. In the process, 30 per cent of the food was getting wasted. This is a national wastage. We are trying to bridge that gap. But when the retail chains take off in a big way, people will get used to buying fruits and vegetables only from these retail stores and not from the mandi. Consumer habits change over a period of time. I will say, it will take two-three years for this change to take place, that too if somebody can make a success of the retail chains.
... contd.