M&M plans dairy biz foray into Punjab

Mahindra and Mahindra's agriculture division is scouting for a viable dairy facility in Punjab to enter the dairy business.

Talking to the media on sidelines of a conference, organised by the Confederation of Indian Industry (Northern Region) in Chandigarh, AgriTech Chief Executive Officer Ashok Sharma said Punjab would be a preferred destination for the company because of strong dairy industry.

He said the acquisition would be of Rs 200-300 crore and would be scaled up under the Mahindra fold. He also said Punjab is the focus of its seed potato business. Mahindra Argi will roll out its fruit distribution arm Subaru in north, most likely in New Delhi early next years.

The company has a substantial exposure in grape exports and exported grapes worth Rs 100 crore in the financial year 2014 to Europe, South East Asia and Russia.

He said the availability of grapes was seasonal in Indian market. To maintain the consistency of the supply to global buyers, the company would start sourcing grapes from Egypt and meet the supply gap in the lean season.

The company is also contemplating to set up cold storages in National Capital Region. He also said Himachal Pradesh is an important market for green houses that increases the yield in horticulture and floriculture. He said the company was eyeing a turnover of Rs 1000 crore from export business and a turnover of Rs 500 crore from the domestic market.