Bharti enters agri business

Services and manufacturing conglomerate Bharti Enterprises on Thursday announced its foray into agri-business in partnership with Rothschilds with an initial investment of Rs 250 crore (Rs 2.5 billion).

"Both partners will hold 50 per cent share each in the venture FieldFresh Foods Pvt Ltd which will start with an equity component of $10 million," Bharti Enterprises Chairman Sunil Bharti Mittal told newspersons in New Delhi.

ELRo Holdings India Ltd, an investment company formed by Sir Evelyn de Rothschilds and Lady Lynn Forster de Rothschild, will be the investment company for the foreign partner in the venture.

"FieldFresh Foods aims to link Indian farms with markets of developed countries. We will be concentrating on vegetables and fruits," he said.

The newly floated company has worked out an elaborate business plan for the venture.

"We will start with North India and open a model farm and agriculture research centre in Punjab. We plan to link farmers in Himachal, J&K, Haryana, Punjab, Uttaranchal and western Uttar Pradesh to the research centre and the model farm that will help them improve the yield. Then we will procure the produce and ship it to markets in US and Europe," Mittal said.

The company would also invest in the logistics chain.

"The first shipments by FieldFresh will start within next six months but it will take 12 months to 18 months for the project to gather steam," Rajan Bharti Mittal, who will be the lead director of the project, said.

Starting with North India, FieldFresh will gradually move to other parts of the country.

The company will have two chairpersons -- Sunil Bharti Mittal and Lady Lynn Forester de Rothschild. While Ravi Doel, who founded the coffee chain Barista, will be the president and chief executive officer of the company.

"While for another two years I will be able to give less time to FieldFresh because of the work with Bharti Televentures, Rajan will look after the business as lead director from our side," Sunil Mittal said.

Asked whether foray into agri-business by Bharti -- which has established a strong telecom business - will go against the generally accepted business practice of concentrating on core competence, Sunil Mittal said telecom business has reached at a stage where it can be managed by professionals.

"Telecom business will gradually take much less of the promoters resources -- both financial and managerial. By entering into new businesses we want to make an impact on the society similar to the one we made in telecom," Bharti Enterprises chairman said.

FieldFresh will also link with research institutions, micro credit agencies and state marketing bodies.

Lady Rothschilds said talks between partners for the venture were on for a year and Rothschilds too were looking for an opportunity to invest in India.