BE IN Mahindra Univeg signing

Pictured left to right at the Mahindra Univeg signing ceremony in Mumbai: Mahindra's Vikram Puri, Ashok Sharma and Pawan Goenka alongside Hein Deprez and Francis Kint of Univeg

Following the announcement that Indian group Mahindra ShubhLabh Services (MSSL) and Belgian multinational Univeg are to form a joint venture fresh produce trading business in India, Asiafruit spoke to Univeg's fresh produce division chief executive Francis Kint about the deal.

When will the joint venture become operational, and where will it be based? When do you expect to have a name?

Francis Kint:The JV will become operational in about 8-10 weeks from now. It will be based in Mumbai with the name Mahindra Univeg Pvt Ltd.

What was the background to this deal?

FK: The companies have a commercial relationship since four years. It was the complementary nature of our skills that made the companies talk.Mahindra was especially interested in Univeg’s experience in the banana supply chain, especially ripening. Univeg saw the huge potential of India – local, import, export – and was seeking a partner.

How much fresh produce, and which products, does Univeg currently source from India?

FK:Currently Univeg sources mainly grapes and onions but occasionally other products such as small exotics and vegetables.

Which Indian products do you see Univeg importing and selling more of in Europe in future?

Exports out of India, beyond existing products, will come in a second phase.

Mahindra currently supplies grapes into Europe through Capespan. Is this likely to change if Univeg is helping to develop Mahindra's grape standards for the domestic market?

FK: The grapes business of both companies is kept outside of the perimeter of the JV, because both parties had established positions and because the objectives of the JV lie in other areas.

Are there any new products that you believe Mahindra Univeg can start importing into India?

FK: The JV will first import the products that are very much in demand but there is a belief that new, lesser-known products such as avocados will have appeal if they are offered to the consumer.An important comment to make is that even with large increases in imports, these lesser-known products remain a very small part of the total consumption and they are not, as such, in competition.

Do you have any plans to start selling Saboro-branded produce outside of India?

FK: We are focused on the Indian market and domestic sourcing for domestic markets. The India JV will use the brand name Saboro for the Indian market.We do not have any plans to launch a fruit brand outside India.

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