Who is our client
Sahyadri, established in 2011 in Nasik, India, is a cooperative Farmer Producing Organization (FPO). Sahyadri procures, processes and markets fruits and vegetables from its 8.000 small farmer members. The company exports various fresh and processed products, mainly table grapes, to Europe, USA, Middle East and Asia, and sells fruits & vegetables to the domestic market. India lacks an efficient supply chain for the distribution of fruits and vegetables and the presence of many unorganized retailers results in wastage of nearly 30% and less remuneration for the farmers. FMO’s financing is expected to give a boost to the agriculture and food processing operations of Sahyadri and reduce wastage and spoilage. The new investment will help Sahyadri finance the construction of collection centres for produce warehousing and transport.
The objective of our funding is to finance (i) the construction of collection centres for warehousing and transport of produce; (ii) distribution centres with cold storage and a fleet of refrigerated trucks for managing logistics and transport; (iii) the rollout of retail stores in urban areas of Mumbai, Pune and Nashik; and (iv) the expansion of the existing production plant. Sahyadri intends to improve its supply chain management, increase its retail presence and start in-house production of (semi) processed products amongst others from fruits and vegetables. Sahyadri’s product portfolio includes fresh fruits like grapes, vegetables and processed foods such as aseptic pulps and frozen fruit pulps.
Why we fund this project
FPOs, like Sahyadri, provide an effective platform for the provision of farm production inputs and marketing of output; this can immensely enhance farm productivity and increase farm income, thereby contributing to the reduction of poverty. Farmers benefit from economies of scale, technology driven enhancements, marketing of the products and adequate facilitation to realize higher returns. This financing is expected to give a boost to the agriculture and food processing operations of Sahyadri and reduce wastages and spoilage.
Building Prospects investment | EUR 7.5 mln
Instrument | Commercial loan