M K C Agro Fresh Limited

About

MKC Agro Fresh Ltd., established in 1966 and based out of Delhi NCR, is a leading player in the Indian fruit trade with a focus on marketing fresh fruits. The company’s objective has been to exert control at the procurement level, ensuring influence on fruit quality and competitive pricing. Over the years, MKC has invested in farmland, gardens, and orchards to secure its supply chain. The company developed a unique model where farmers offer MKC the first right of refusal before selling their produce on the open market. This approach has been pivotal in establishing MKC as a renowned name synonymous with superior quality in the Indian fruit market. MKC’s efforts extended to developing a terminal market in Himachal Pradesh, benefiting apple growers by providing fair pricing and aligning with the company’s socially responsible values. In the domestic market, MKC holds a leading position in oranges. Its state-of-the-art cleaning, sorting, grading, and waxing plant in Warud District, Maharashtra, processes approximately 300MT of oranges per day during the 6-month season. MKC takes pride in being the first Indian company to import machinery from Italy for this purpose. With a pan India presence, MKC has firmly rooted itself as the largest supplier of Indian fruits to modern retail giants such as Reliance Group, Big Bazaar, Future Group, More, and Mother Dairy (a Government of Delhi venture). The company caters to the Food and Grocery market estimated at close to USD 500 billion. Moreover, MKC invested USD 6.1 million in a cutting-edge Controlled Atmosphere (CA) cold chain facility imported from the Netherlands, boasting a capacity of over 5000MT. India’s significant fruit and vegetable production, coupled with a yearly 15% growth in the fruit market, has led to an ever-increasing demand that cannot be fulfilled solely by local production. Data from customs indicates the import of approximately 350,000MT of fresh fruits valued at USD 400 million. MKC has taken the initiative to engage in direct imports from five continents to meet the growing needs of the country’s 1.3 billion population. Notably, kiwi fruit, citrus, and apple imports are experiencing remarkable growth rates of 60%, 30%, and 20% respectively. With the growing acceptability of Indian fruits on the global stage, MKC has ventured into the export market, shipping oranges to Bangladesh. The company is strategizing to expand its presence further in this industry, which is valued at over USD 500 million. Leveraging its strong relationships and standing in the industry, MKC aims to obtain quality produce at favorable pricing. In its first year of export, MKC has already achieved recognition, securing the 17th position in the country for mixed fruit exports by APEDA (Agricultural and Processed Foods Product Export Development Authority). With nearly 55 years of experience and annual revenues approaching USD 50 million, MKC is well-positioned to capitalize on opportunities not only in the Indian market but also globally. The company’s greatest asset is its uninterrupted supply of high-quality fruit, which can be sold locally, exported, or further processed to meet the increasing demand, especially when domestic fruit production falls short. India faces a significant challenge with a bottleneck in the supply chain between farmers and consumers, leading to a wastage of 14% per year of the world’s second-largest production of fruits and vegetables. However, MKC’s active involvement at every step of the supply chain gives them the resources and influence to address this issue. MKC sets itself apart from other players in the industry by actively engaging in every step of the fresh fruit supply chain. The company collaborates with over 12,000 farmers who grow a diverse fruit basket in India. With multiple locations in Warud district, Narkanda, Delhi NCR, Hyderabad, and Bangalore, MKC has a widespread geographical presence, allowing it to access and serve all major markets efficiently. One of the significant challenges facing the fresh produce industry is the lack of supporting infrastructure. In 2018, horticulture crop production reached 311.71 million MT, resulting in approximately 14% wastage, amounting to USD 1.5 billion. Despite having 6300 cold storage facilities with a capacity of 30.11 million MT, these facilities fall short of meeting half of the country’s requirements. Additionally, a large proportion of these facilities are located near production points, with too few in proximity to the market. This wastage is also exacerbated by outdated harvesting practices. MKC’s success lies in its strong relationships with farmers, as it enters the procurement process at the flowering stage, providing early payments to growers. This financial freedom enables farmers to focus on better harvesting practices, adhering to food safety standards with correct fertilizers and pesticides, and acquiring medicinal products to ensure a favorable crop. This backward linkage allows MKC to efficiently move produce up the value chain, guaranteeing an uninterrupted supply for the season and equating to superior quality, particularly with oranges, which undergo cleaning, sorting, grading, and waxing using MKC’s own machines before being ready for buyers. The company benefits from its own CA cold chain located close to the market, enabling efficient storage of fruits based on demand. Repacking for the retail market also occurs here. MKC’s distribution network, comprising 20 owned vehicles and over 100 dedicated exclusively to MKC, ensures efficient and safe product movement across the country as per demand. The Indian government’s recognition of infrastructure challenges led to announcements of USD 1.4 trillion investments in new infrastructures over the next 5 years, which will further benefit MKC’s smoothly run operations. Singapore, the largest foreign direct investment contributor, has companies earmarking significant investments in the logistics sector across India. While limitations arise from wastage and inadequate infrastructure, MKC’s current operating framework mitigates these issues, and the company’s early involvement in the procurement process ensures an uninterrupted supply of fresh fruit, eliminating major concerns for the export market. India produces over 300 million MT of fruits and vegetables annually, ranking first worldwide in the production of bananas, papayas, and mangoes. With citrus production reaching 11.74 million MT, India stands as the third-largest producer globally. Citrus fruits rank first in trade value among all fruits worldwide. In 2018-2019, fruit and vegetable exports amounted to USD 1,469.33 million, with fruits commanding USD 692.01 million. Notably, grapes, pomegranate, mango, banana, and orange account for the largest share, going to major destinations such as Bangladesh, UAE, The Netherlands, Nepal, Malaysia, UK, Sri Lanka, Oman, and Qatar. Although India’s share in the global market is only 1 percent, increasing acceptance of Indian produce is evident due to developments in cold chain infrastructure and uniform quality protocols. With fruits available year-round in India, MKC operates a continuous year-round fresh business and boasts a wide customer base for domestic fruit. The company’s guaranteed source of supplies and strong reputation among local farmers demonstrate the effectiveness of its present business model. MKC is also making strides in the global market, accessing renowned suppliers of fruit and expanding its footprint in imported fruit. Last year, the company established a storefront in Delhi’s Azadpur Fruit Market, Asia’s largest fruit and vegetable market, serving as an ideal outlet for marketing imported fruits. MKC Agro Fresh Ltd. has been a profitable company since its inception in 1966, and the demand for fruits continues to grow steadily both in the domestic and imported markets. With the ability to procure more fruit, the company faces no limitations in selling locally, as it has well-established locations across the country and its CA cold chain allows for prolonged fruit storage when needed. The company’s own trucks and dedicated transport companies ensure timely market delivery. The Indian government’s focus on infrastructure development will benefit MKC’s operations, leading to increased efficiency, better margins, and higher profitability. Additionally, the influx of foreign direct investment in India’s logistical infrastructure network provides MKC with opportunities for growth. MKC boasts a strong pan India presence and has emerged as a leader in the industry. Their early payment model to growers ensures an uninterrupted supply of quality produce, and they are recognized as the largest supplier of Indian fruit to modern retail giants like Reliance, Future Group, Big Bazaar, More, and Mother Dairy. In the import segment, MKC’s strong financials have earned them credit insurer cover, allowing them to import directly and form strategic relationships with international suppliers like Mr. Apple from New Zealand. These relationships enhance MKC’s global recognition and standing, while the company’s ability to post revenue evenly throughout the year due to less active import markets during India’s fruit seasons contributes to their success. The recently awarded Authorized Economic Operator – Tier 2 certification and deferred duty facility by the Government of India provide MKC with international recognition and expansion opportunities overseas. MKC’s significant presence across all fresh produce in India, along with their continuous supply model, drives farmers and producers to collaborate with the company. With a growing demand in the industry, MKC is well-positioned to capture a significant share of the market and capitalize on the rising population and growth. The company is also ready to enter the export market, leveraging the increased acceptability of Indian fruits in Europe and North America. MKC’s superior sourcing methods ensure quality and competitive pricing, while favorable Indian government policies make the export market even more lucrative for the company. Our Mission To deliver quality fresh fruit sustainably by strategically placing ourselves at every step of the supply chain to ensure that as the fruit moves up the value chain; we minimize costs and wastages; thereby protecting all our stakeholders. Our Vision To become the first fully vertically-integrated, end-to-end environment-friendly, fresh fruit company in India with global recognition. We deal in the entire Indian fruit basket; and our brand of fruits, FreshPick, can be found in even the remotest of corners in the country. Our unique business model sees us purchasing fruits directly from thousands of farmers, as well as our own orchards, to ensure that our customers get a top-quality fresh fruit placed on their table. Our team ensures the journey from farm to fork is completed seamlessly. This is made possible by our investments in post-harvest technology such as European made sorting/grading machinery – the only company in India to have all European machines, a logistics network encompassing over 100 trucks, distribution points/centers all across the country and a 5000MT Controlled Atmosphere facility commissioned entirely from The Netherlands; to name a few.

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