Vegetable Selling now Facilitates Entrepreneurship
Giving house wives a taste of entrepreneurship is the most recent venture by Neeraj Gupta – the man behind Meru Cabs – an initiative that changed the face of post paid cabs in India. Along with K Radhakrishnan, Ram Nair and Anjaney Bhutada (ex-Future Group), Gupta has launched Freshkins Foods India Pvt. Ltd. – a first of its kind retail model in India what will source fresh produce from farmers directly at right cost and serve it to the urban consumer via micro-entrepreneurs – namely women. Assisting them in this is the Maharashtra State Agriculture Marketing Board (MSAMB) with their database of over 76,000 farmers. MSAMB has also allowed the company to rent the government warehousing facility at Goregaon that is spread across 40,000 sq.ft. of space.
To give each one a fair chance to take a franchise of Freshkins, bank accounts of the registered franchisees would be directly linked to the company thus ensuring that a concept of master franchise is ruled out. K Radhakrishnan, chief mentor, Freshkins Foods India Pvt. Ltd. shares, “The idea behind launching this venture is two-fold. Where we want to change the way vegetable shopping and buying happens in India, we also want to extend micro-entrepreneurship opportunity to people who have the capacity to invest about Rs. 2-5 lakhs out of which 40 per cent shall be given back to them as a rebate from the Maharashtra Government.” The franchisee can either opt for a store, a mobile store of a portable kiosk / shop-in-shop. From the central distribution centre located at Goregaon, Freskins shall give a door step delivery of the day’s stock to the registered franchisee. The stock can either be ordered personally by the franchisee or he can rely on the suggested order from Freshkins that will be decided upon depending on the franchisee daily sales and past sale history with the company. Gupta shares, “We have a strong IT backing the entire initiative. The delivery of goods shall be done with a suggested price. The franchisee can opt to either sell the goods at the suggested price of pass on the margin to his customer. We leave that to him / her but under no circumstances can he / she sell at a price higher than the suggested price.” The company is also introducing the concept of Daily Bazaar that would allow individual vendors / institutional buyers to directly come and pick stock from their central warehouse at Goregaon. Post crossing 50 stores, they would enter the online space as well. With an initial investment of Rs. 5 crores, the company needs another Rs. 10 crores to achieve a turnover of Rs. 250 crores by March 2016.
The model is expected to be replicated in Delhi, Pune, Hyderabad and other parts of India starting next year.
– Zainab Morbiwala –