Mahindra ShubhLabh Services (subsidiary of Mahindra & Mahindra) part of the USD 16.7 billion Mahindra Group, today signed a joint venture agreement with UNIVEG, a Belgium based Euro 3.2 billion fresh produce company.
The joint venture, between Mahindra and the UNIVEG Group will have Mahindra ShubhLabh Services (MSSL) and UNIVEG holding 60% and 40% equity respectively in the company. The JV will focus on developing fresh fruit supply chain to provide high quality fruits that meets the needs of both the domestic and international markets. Other than grapes JV will focus on select key fruits.
Commenting on the joint venture, Dr. Pawan Goenka, executive director and president, automotive & farm equipment sectors, Mahindra & Mahindra said, ''In line with our vision of delivering Farm Tech Prosperity, Mahindra ShubhLabh was set up to help farmers increase their productivity and enable them to obtain greater value for their produce. It is a matter of pride for us that we have today signed this JV with a global leader in fresh produce.''
He added, ''This JV will enable both companies to leverage each other's strengths thereby providing a win-win for farmers and end consumers alike. Going forward, we plan to strengthen our partnership by further improving the fresh produce supply chain through various interventions and investments across India.''
Hein Deprez, executive chairman & major shareholder, UNIVEG Group mentioned, ''We consider this association the right mix of market presence and farmer connect. Mahindra's reach, together with our proven technical expertise across 6 continents and 32 distribution centers in Europe will be beneficial for all stakeholders.''
Under the JV high quality fruits will be imported from across the world and position Indian fruits in the global markets by building efficient export oriented supply chains, for certain select fruits.
SMC Capitals was the advisor to Mahindra ShubhLabh Services (MSSL) for this transaction.
Shares of the company declined Rs 17.85, or 1.78%, to trade at Rs 985. The total volume of shares traded was 55,047 at the BSE (3.20 p.m., Tuesday).
