Mahindra's AgriBusiness Unit Forms JV With Holland's HZPC

Mahindra & Mahindra Limited have entered into a 60:40 JV with Holland based HZPC to provide seed potatoes to farmers domestically and internationally, the company said in a filing. The JV company will also set up facility to produce tissue culture plants and mini tubers.
HZPC will provide its expertise, technology and R&D capabilities while Mahindra would leverage its farmers networking, distribution channels and domestic agronomy experience to the JV.

The Dutch partner is majorly owned by farmers and specializes in potato breeding, seed potato growing and seed potato trading. It has over 250 fellow workers in over 10 countries and owned by 800 international seed growers and co workers. The Eur 300 Mn company has already sent out close to 19 varities of the seed crop to be tested in India.

The total potato market in India is estimated to be around 43 Mn tones of which 10% is used as seeds by farmers. The organized sector which constitutes 0.25 Mn tones is growing at a CAGR of 15-17% whereas the entire potato market is expected to grow at a CAGR of 6%.
Mahindra which started its seed potato business in 2005 to aid the farmers in Punjab, today has connections with over 600 seed potato growers through contract farming arrangements. It also supplies mini tubers through its unit located in Palampur, HP.
It is part of the conglomerate’s AgriBusiness division which commenced its operations 2010 to provide integrated solutions to farmers. The division is engaged in agri input businesses like seeds, crop care, seed potato. Its subsidiary Mahindra Shubhlabh is in the fresh fruit business while another subsidiary EPC Industries offers drip, sprinkler, pumps and green house solutions.

Recently, Mahindra Shubhlabh Services Limited had formed a 60:40 JV with UNIVEG, a Belgium based Euro 3.2 billion Fresh Produce company to source high quality fresh produce for domestic consumption and set up a supply chain facility for its distribution across India.