Colour of Money ; Entrepreneurs and Investors Are Making Most of the Business Opportunities That Abound in the Farm-to-Fork Value Chain.

Business Today (April 05, 2009)

Author: Shamni Pande

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Summary


With manufacturing plants idling and export markets dying, investors are crowding back into basics like food. Consumers may shrink away from that new car or Plasma TV, but everybody has to eat. Many sectors have fallen out of favour with investors, but food is one area that has shown resilience and is counter-cyclical, says Rajesh Srivastava, Chairman & Managing Director, Rabo Equity Advisors.

Srivastava should know: he's now in charge of the $100-million India Agri Business Fund, which will look exclusively at India's agricultural sector. One of Srivastava's first investments: Hyderabad-based Sri Biotech Laboratories India, which makes biological and bioorganic products for crop improvement and protection. We find post-harvest to be a very interesting area. Usually, for investors to get interested, there has to be a certain depth in scale of operation, and this is now visible. There are more players today, who have businesses of over Rs 20 crore that make them attractive, he says.

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Colour of Money ; Entrepreneurs and Investors Are Making Most of the Business Opportunities That Abound in the Farm-to-Fork Value Chain.

This goes to show that despite the appalling gaps in the delivery mechanics cold chains, warehousing, processing centres and logistics there is enough today to make entrepreneurs tackle specific projects in the farm-to-thetable value chain. Kalyan Chakravarthy G.K.D., Country Head (Food & Agri Strategic Advisory Research), YES Bank, concurs: Today, it is clear that demand is not an issue, it is the supply side that has not been sufficiently worked upon by any player at the national level... there are eff...

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