01 Sep Lawrencedale in talks with Grofers to deliver its vegetables
Lawrencedale Agro Processing India Pvt, a fruit and vegetable merchant operating under Leaf brand, is restructuring its functions to accelerate deliveries. The firm is in advanced talks with hyper-local delivery organization Grofers to supply its vegetables in Bengaluru, Chennai and Coimbatore. Grofers will offer produce under its private name brand. Both companies are negotiating on the pricing.
The Ooty-based organization is receiving a hub-and spoke model in Bengaluru, Chennai and Hyderabad to be overseen by merchants who will deliver to retailers specifically. As of recently, the organization had been disseminating fruits and vegetables from accumulation or distribution centers in every city at a 10 km span.
Presently, the produce will be delivered to center points keeping in mind the end goal to reach stores by 7 am, contrasted to 11 am earlier, said KP Nair, founder and director of Lawrencedale. “We should arrive crisp at peak purchaser hours in these regions.” It plans to set up five to six center points in every city and has put aside Rs 2 crore for this. Established in 2008, Lawrencedale has approximately 200-client contact points crosswise big and small retailers, restaurants, hotels and sustenance handling firms in eight urban areas. It offers 10-12 varieties of vegetables.
Lawrencedale additionally offers on Big-Basket and LocalBanya. The organization is financed by Aspada Investment, an impact fund, which invested in $2 million in April 2013 for 40 percent. There are talks progressing between various investors and the company to rise another funding of about $10 million to support the proposed restructuring.
“We are conversing with investors to raise another Rs.50 crore this year and plan to finish it by later this year,” P. Vijayaraghavan, Chief Executive Officer of Lawrencedale said. This would be utilized for setting up post harvest management systems in its farms.
The yearly turnover of the organization is Rs.30 crore and it handles 25 to 30 tons of vegetables and natural products a day now. It plans to expand the volume to 250 tons. It sets up frosty stockpiling, pre-washing, bundling offices in vegetable and natural product development focuses. “We have contributed Rs.6.50 crore to set up three such focuses, including Jadayampalayam and Masakkal,” he said.
The organization acquires vegetables from agriculturists, particularly those with fewer than five acers of land, cleans, grades and packs the produce under the brand ‘LEAF’.