FDI can help fruit and vegetable processing industry: Minister

Food Processing Minister, Harsimrat Kaur Badal said that FDI in multi-brand retailing can benefit the
fruit and vegetable processing industry, as per a PTI report.
Tags: FDI, Food processing industry
BY RETAILER | SEP 23, 2014 | COMMENTS ( 0 ) |

Food Processing Minister, Harsimrat Kaur Badal said that FDI in multi-brand retailing can benefit the fruit and
vegetable processing industry, as per a PTI report.
The BJP-led NDA government is opposing to allow foreign direct investment (FDI) in multi-brand retailing, but
it has not yet scrapped the policy approved by the previous UPA regime.
Commenting on the initiatives taken by the new government in the sector in 100 days, Badal said the sector is
growing at the rate of 8.4 per cent as compared to 4 per cent in agriculture. Further the minister added, in case of fruits
and vegetables only 2 per cent of the total output is processed, which needs to be increased.
When asked on FDI in multi-brand retail, Badal said, "FDI as a policy of the government is clear. It's not
something which I may decide, it's the Cabinet decision. There is no doubt that it would benefit in fruits and vegetables
processing segment. Cold chains and all the required infrastructure will come up. But a larger policy decision would be
taken by the government and not by one ministry."
FDI is a government policy decision, it can't be sector specific, she added.
Commerce and Industry Minister Nirmala Sitharaman had categorically stated that the FDI would in multibrand retail would not be allowed.
The previous government had opened the multi-brand retail sector for foreign investment and allowed up to 51
per cent foreign direct investment (FDI) in the sector.
The politically sensitive multi-brand retail segment in India employees millions and is dominated by mom-andpop stores.
Kishore Biyani looks at acquiring cold-storage firm to drive food business
Having entered consumer goods business with a dedicated food park, the Kishore Biyani-led Future
Group, today said it is looking to acquire a cold chain logistics company to help distribute its products, says a
PTI report.
Tags: Kishore Biyani, cold-storage , food, business
BY RETAILER | SEP 25, 2014 | COMMENTS ( 0 ) |

Having entered consumer goods business with a dedicated food park, the Kishore Biyani-led Future Group,
today said it is looking to acquire a cold chain logistics company to help distribute its products, says a PTI report.
"We have multiple temperature storages and processing facilities here. Future Logistics is looking at an acquisition of a
company to help in distribution," Biyani told a select group of reporters here, ahead of the inauguration of India Food
Park here by Prime Minister Narendra Modi later today.
Biyani, however, refused to divulge the deal size which the company is looking at, but maintained that it will happen
this calendar year and will be a complete acquisition.
"Snowman is there, but we also want to do work on cold chain logistics," he said, referring to the company which just
had a bumper share sale.
At the 110-acre food park located on the outskirts of Bangalore, Biyani said there are multi-temperature cold storage
facilities which will handle multiple commodities like bananas, mangoes, apples and so on.

Further, the company plans to open two more such food parks in Kharagpur in Bengal and Madhya Pradesh, he said.
Future Logistics will play a pivotal role in ensuring success of the FMCG business, Biyani said, stressing on the need
and urgency of the acquisition.
He asserted that the group, which has had a difficult time in recent years, has "sufficient cash" to fund its expansion.
If need be, it may look at selling non-core assets like the publication division Amar Chitra Katha, he said, hinting that it
may also sell some brands in core business.
V-Mart to have up to 200 stores in next four years
Multi-brand retail chain, V-Mart is aiming to expand its store network up to 200 in non-metro cities in
next four years by adding upto 25 stores every year,as per a report in PTI.
Tags: Vmart, retail
BY RETAILER | OCT 14, 2014 | COMMENTS ( 0 ) |

Multi-brand retail chain, V-Mart is aiming to expand its store network up to 200 in non-metro cities in next four
years by adding upto 25 stores every year,as per a report in PTI.
The company, which primarily retails apparels in tier 2 and 3 cities, has also plans to expand in the North East
and Southern regions.
"We would double our size in next three to four years. We would keep adding 25-30 stores every year in our
network," V-Mart Retail Chairman and MD Lalit Agarwal told PTI.
He further added "We aspire to have 114 stores in our network by the end of this fiscal." V-Mart, which today
opened its 100th stores in Patna plans to continue to add more stores at smaller places.
It has plans to add new stores in Lucknow, Allahabad and foray in places like Kishanganj, Purnia in Bihar and
some places in West Bengal during this fiscal.
Presently, it is operating in 86 cities in 12 states.
According to Agarwal, the company is investing around Rs 2.5-3 crore to add a new store in its network.
"Right now we are gradually expanding in East. Then we would move to North-East and in places like Assam,
Bengal and Odisha. We have a cluster-based format and would move down south in phases," Agarwal said.
The company, which is expanding at a compound annual growth rate (CAGR) of over 30 per cent, has sufficient
funds for its expansion, he said.
"As of now, the company has sufficient reserve and is generating funds to meet its expansion. Till a CAGR of
30 per cent, the company can meet its expansion through its existing funds and internal accruals. When we want to grow
beyond 30 per cent then we would need funds," he added.
The company is focusing on apparels. Out of 100 stores, it is selling FMCG and other product in 34 stores only.
"Now all the new stores have only apparels. They are a family fashion store. We think that fashion and FMCG
don't gel together," he said.
On being asked whether the company would have exclusive tie-up with any leading fashion designer, Agarwal
said, "We are following the trend and trying to make it affordable. Our market base is little different. It is mid and
aspiring income group."