01 Sep Fruit and vegetables seller Lawrencedale scales up back-end ops for speedy delivery
Lawrencedale Agro Processing India Pvt, a seller of fruit and vegetables under Leaf brand, is restructuring operations to speed up deliveries and expand.
The Ooty-based company is adopting a hub-and-spoke model in Bengaluru, Chennai and Hyderabad to be managed by distributors who will deliver to retailers directly. Until now, the company had been distributing fruits and vegetables from collection or distribution centres in each city at a 10 km radius.
Now, the produce will be shipped to hubs in order to reach stores by 7 am, compared with 11 am previously, said KP Nair, founder and director of Lawrencedale. “We need to be there fresh at peak consumer hours in these areas.” It plans to set up five to six hubs in each city and has set aside Rs 2 crore for this.
Founded in 2008, Lawrencedale has some 200 customer-contact points across organised and small retailers, hotels, restaurants and food processing firms in eight cities. It sells 10-12 categories of vegetables.
Alongside, the company is in advanced talks with hyper-local delivery company Grofers to supply its vegetables in Bengaluru, Chennai and Coimbatore, said a person aware of the developments on condition of anonymity. Grofers will sell produce under its private label brand and the parties are negotiating the pricing, the person said.
Grofers did not immediately respond to an email sent by ET.
Lawrencedale also sells on Big-Basket and LocalBanya. The company is backed by Aspada Investment, an impact fund, which put in $2 million in April 2013 for 40 per cent. It is in advanced stages of talks with investors to raise another round of funding of about $10 million.