Mahindra & Mahindra (M&M) has entered into retail business of pulses under the brand ‘NuPro’ with a launch price of tur at Rs 210 a kg against the prevailing price range of Rs 180 and Rs 220 a kg.
M&M created the agri-commodities vertical five years ago. The company entered the business-to-business (B2B) pulses segment three years ago and launched ‘NuPro’ mustard oil brand recently in Kolkata. Going forward, the company plans to enter e-retailing and selling of dairy products, for which pilot trials are currently on in Madhya Pradesh.
“The entire pulses market is estimated at Rs 2 lakh crore annually in India, of which branded players consist of one or two per cent. The largest players recorded the highest turnover of Rs 350 crore, which means huge potential lies ahead for organised and branded players,” said Pavan Goenka, executive director, M&M.
Announcing the entry of the company into branded pulse retail business, Ashok Sharma, Chief Executive of M&M’s agri business said, “We have engaged farmers on contract basis to provide end-to-end solution ‘Farm to Fork’ with 600 Samridhi (farmers’ advisory) centres. We did not commit any returns to farmers, but those associated with us have enjoyed good returns.”
The company entered the business-to-business (B2B) pulses segment three years ago and launched ‘NuPro’ mustard oil brand recently in Kolkata. Classified as a symbol of nutrition and progression, the brand promises high quality as unpolished, healthy, tasty and less cooking time; and hence, price competitive as well.
M&M carries out business of ripening and selling of banana in Delhi market. It also exports grapes. In the last financial year, the company cloaked a turnover of Rs 600 crore, nearly one per cent of the company’s overall revenue. The company has recorded eight-fold growth in the past five years.
The company plans to expand its network of pulses retailing with offerings in all pulses segment apart from branded besan throughout the country in nine months from now. The whole objective of M&M is to control the entire value chain of the products it offers including procurement, storage, transportation and marketing.
“This helps us minimise our post-harvest commodity management losses, which compensate three per cent higher input cost (at five per cent against two per cent by other players in the same field),” said Sharma. So, apart from providing sowing guidance to farmers, the company procures quality output from farmers for marketing.