Tata Chemicals, Total Produce in 50: 50 agri products JV

Mumbai: Tata Chemicals Limited (TCL) and Total Produce Plc have entered into an agreement to form a 50:50 joint venture company in India to create distribution facilities for fresh fruit and vegetables across India.

Total Produce is Europe's largest fresh produce company and comprises the general produce business, which was demerged from Fyffes Plc in December 2006. The group generates a turnover in excess of $2.5 billion and has over 80 trading facilities in Europe.

The JV will begin by establishing facilities in two centres in the north and east of the country at an estimated cost of approximately over Rs 1,100 crore ($5.7 million) which are covered by Tata Chemical's 500-strong Tata Kisan Kendra (TKS). The two companies plan to use this network to reach consumers across the country.

According to Homi Khusrokhan, managing director, Tata Chemicals Ltd, "The experience of our TKS network gained over the years coupled with expertise in agronomy, gives us a unique edge in this business. Total Produce brings with it a wealth of knowledge, experience and a proven track record of success in this sector. We are delighted to partner with Total Produce in this new and exciting venture to take fruit and vegetable production and distribution in India to international standards and, at the same time, ensure improved incomes for farmers."

Carl McCann, chairman of Total Produce, added, "We believe India, with its fast growing economy and one of the world's largest populations provides great potential to build a large and successful business. India is in addition one of the largest producers of fresh produce in the world."

Established in 1939 Tata Chemicals Limited is India's leading manufacturer of inorganic chemicals, fertilizers and food additives and operates the largest and the most integrated inorganic chemicals complex in the country at Mithapur, Gujarat. The company has a consolidated annual turnover of over $ 1 billion.