Financial Daily from THE HINDU group of publications
Friday, Mar 08, 2002
Financial Daily from THE HINDU group of publications Friday, Mar 08, 2002 |
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Agri-Biz & Commodities
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Coconut & Copra Marketing - Strategy After dal-roti, it is coconut for Rs 2! Ch. Prashanth Reddy
HYDERABAD, March 7 FROM the stables of the group that sold dal and roti for Rs 2, there is another innovation out. And this time, it is tender coconuts. The Nandi group is now marketing tender coconuts for just Rs 2 each in Nandyal in Kurnool district of Andhra Pradesh. Revealing the secret of the pricing strategy, the Chairman of the Nandi Group, Mr. S.P.Y. Reddy, told Business Line that the coconuts were being brought into Nandyal from Pamidi village in Anantapur district in the milk vans of the company. The group is into dairy business and operates numerous vans to supply of milk. Thus, there was no incurring of any additional transportation costs, he said. Mr Reddy said at present he was incurring a loss of only 25 paise per coconut sold. And this was only from the handling charges. But he hoped the situation would change from June when the farmers would be selling to him coconuts at Re 1 each. Presently, he pays Rs 2 per coconut to farmers who give him five coconuts free for every 100 nuts purchased. The Nandi coconut counter at Nandyal caught the attention of the people as soon as it was opened. On account of the low price, people started buying dozens of coconuts forcing Mr Reddy to ration the sale of the fruit at two per head. The counter sells 2000 coconuts per day. Last October, Mr Reddy launched a novel food counter in the town where he sold a jowar roti for Re 1 and a bowl of boiled dal also priced at Re 1. The response was so overwhelming that he had to open more such counters in the same district as well as in Cuddapah, Anantapur and Mahabubnagar districts. Presently, about 105 Nandi food counters are being operated in the State. Mr Reddy, however, is cautious of opening more tender coconut counters at present. He hopes to expand the business only after June when coconut prices will start declining.
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