Capespan has announced it is working on setting up a joint venture in India and has has taken over one of its South African top and stonefruit suppliers.
To establish a significant presence in the Indian fresh produce market, Capespan and agri-business giant Mahindra ShubhLaabh Services Ltd (MSSL) have signed a memorandum of understanding to investigate forming a joint venture company in the sub-continent. The 12-month pilot project will be rolled out from April 1 with a team drawn from MSSL to develop knowledge about the retail industry, build knowledge about Indian product supply dynamics, determine a brand strategy and develop a five-year business plan for a possible future joint venture.
Capespan fruit division ceo Louis Kriel said: “MSSL will be primarily responsible for executing the pilot plan and arranging the resources needed. Capespan will provide the technical commercial support and expertise for grapes, citrus and apples; develop imports into India from South Africa and other source countries; and engage with retailers to determine their long-term needs.” Meanwhile, both parties will work on developing further export opportunities for Indian produce. He said if the pilot plan proved successful, the two companies would enter into a mutually exclusive 50/50 joint venture in India. This JV would establish itself as a receiver, handler and distributor of selected produce into the retail and foodservice sectors.
Separately, Capespan purchased Applethwaite through its associate company Rapiprop for an undisclosed sum.
The purchase, from the Lombardi Trust, includes the 490ha Applethwaite farm in the Grabouw area of Western Cape. “The purchase of this large apple, pear and plum production unit underscores Capespan’s continued focus on growth and development,” said managing director Neil Oosthuizen.
He confirmed that Applethwaite (Pty) Ltd was being taken over as a going concern with its 300 employees. “Because the farm has been a Capespan supplier for more than 60 years, we know the business intimately.”
With orchards covering 300 ha, Applethwaite exports 260,000 cartons of apples, 50,000 cartons of pears and 100,000 trays of plums. Apart from having its own packhouse and cold stores, the farm was one of the first in the country to offer a crèche, pre-school, clinic and church facilities to staff members. It has also been one of the pioneers in computerised quality control.
Rapiprop, a joint venture between Capespan, Total Produce and the Cape Empowerment Trust, owns and operates farms in South Africa. The organisation buys farms that are good investments, secures strategic supply of fruit and will play an important empowerment role in future.
Rapiprop md Brian Mackinnon said that at the outset there will be an emphasis on the continued redevelopment of certain orchards.
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