The Hindu Business Line : Indian farm fresh takes on MNC might

THIS appears to be yet another desi versus MNC story; but with a difference. This time it is no entrepreneur that is taking on the giants, but a Government joint venture company manufacturing from an exotic fruit that may well take the market by storm. The fruit extract in question — from seabuckthorn — is being retailed commercially for the first time anywhere in the world.

Ladakh Foods Ltd, a joint venture company with Small Farmer's Agri-Business Consortium (SFAC) and the National Agricultural Cooperative Marketing Federation of India (Nafed), is set to introduce a range of premium skin-care products, pharmaceuticals and neutraceuticals. And even as these plans are being firmed up, the company is taking its just-launched seabuckthorn fruit nectar juice in tetrapaks, to national markets.

The SFAC — a financial institution under the RBI Act and functioning under Ministry of Agriculture — has a 25 per cent equity participation in the company, 10 per cent is held with Nafed, 25 per cent with farmers and the remaining is with Ladakh Foods.

Mr V.K. Mittal, Managing Director, Ladakh Foods Ltd, told Business Line that the skin-care products, made from seabuckthorn fruit's oil extracts, would include moisturising, sun-screen and anti-ageing creams initially. ``We expect to introduce this range in four months time beginning with Bangalore, following which we will launch anti-ageing and anti-stress medicines,'' Mr Mittal said. All products developed by the company will be aimed at promoting the agro, horticulture and food processing industries in the Leh-Ladakh region.

Ladakh Foods is in the process of setting up an integrated processing plant at Leh in Ladakh to process a maximum capacity of 2,000 tonnes per annum of seabuckthorn fruit juice and oil extraction, with financial support from Exim Bank and ICICI Bank.

The company has a technical collaboration with the Defence Research & Development Organisation (DRDO), and has formed an association with a group of 300 seabuckthorn farmers from the Leh-Ladakh region, to ensure backward linkages.

Ladakh Foods has a co-packaging arrangement with the foods division of Godrej Industries Ltd, Bhopal, for its seabuckthorn fruit nectar branded Leh Berry. At Rs 15 for 250-ml packs each, Leh Berry's pricing is competitive. PepsiCo's Tropicana, for example, is priced at Rs 15 for a 200 ml carton.

Ladakh Foods has projected ambitious plans: scaling a turnover of Rs 100 crore in five years, and infusing an investment of Rs 25 crore in two years up from the current Rs 5 crore investment. Exports to overseas markets are also on the drawing board.

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