Adani group is all set to launch fruits and vegetables supply in a big way.

For this purpose, Adani Agrifresh is planning to set up a supply chain for fruit and vegetables to cater to the booming organised and traditional retail sectors.

Companies like Reliance [Get Quote] Fresh, Spencer's and Subhiksha have not been able to entirely source fruits and vegetables directly from the farmers and so they are relying on commission agents in mandis.

This gives a company like Adani Agrifresh scope to step in with a supply chain and meet the rising demand of retailers.

Adani Agrifresh officials said the company plans to become a large supply chain in fruits after which it will focus on vegetables.

The idea is to set up a chain linking farms to markets in major cities and thereby providing value addition for both farmers and consumers.

After consolidating the supply chain operations, the company would look into processing of fruits into pulp, juices etc.

Last year, the company invested Rs 200 crore (Rs 2 billion) in setting up three collection and processing units with a capacity of 6,000 tonnes each in Himachal Pradesh.

The company procured about 5,000 tonnes of apple from the state last year and also bought cherry and green almond on a trial basis. It also bought litchi from Bihar.

This year, it is planning to procure 25,000 tonnes of apple and begin buying vegetables in Himachal Pradesh. In order to start operations in Maharashtra, the company will hire storage facilities around Nashik. It will buy oranges, grapes and pomegranates from Maharashtra.

This year, the group is also planning to export grapes and pomegranates to Europe and West Asia. Next year, it would start buying mangoes, banana and sweet lime from Andhra Pradesh, Karnataka and Gujarat.

The company supplied apples and other fruits to retail chains like Reliance Fresh, Food Bazaar, Mother Dairy, Metro, ITC Choupal Fresh, Big Apple, etc. Apart from supplying fruits to these chains, the company is also selling directly to mandis in 25 cities across the country.