2nd Feb 2007 07:00
Total Produce Plc02 February 2007 Stock Exchange Announcement TOTAL PRODUCE AND TATA TO LAUNCH FRESH PRODUCE JV IN INDIA Total Produce Plc (Total Produce) and Tata Chemicals Limited (TCL) have enteredinto an agreement to form a 50/50 joint venture company in India. The objectiveof the JV is to create state-of-the-art distribution facilities for fresh fruitand vegetables across India by leveraging the individual strengths of bothpartners. Total Produce is Europe's largest fresh produce company and comprises thegeneral produce business which was demerged from Fyffes Plc on 30 December 2006.The group generates a turnover in excess of US $ 2.5 billion (• 2 billion), hasclose to 3,900 employees and trades from more than 80 facilities throughoutEurope. Shares in Total Produce are traded on the Dublin and London stockexchanges. TCL is a global company operating in the chemicals and agri space. It is listedon the Bombay Stock Exchange (BSE) as well as National Stock Exchange (NSE) withconsolidated revenues in excess of US $ 1 billion (• 0.78 billion) annually. Thecompany has over 3000 employees and is part of the US $ 22 billion (• 17billion) Tata group. Over the years the company has built a network of agri service centres, brandedas 'Tata Kisan Sansar' (TKS), which has long established relationships withgrowers through the provision of farm inputs and advice. This experience will beused to channel the produce from source to the distribution facilities. TKSoutlets numbering over 500 give the company a unique advantage of being close tothe producer. Both parties view this as an opportunity to bridge the gap betweenproducer and end consumer, which will significantly increase efficiencies,improve shelf-life and reduce product loss in the supply chain. This new venturewill help Indian farmers to improve their incomes and develop the skills neededto raise the quality of Indian farm produce. It is intended to first establish facilities in two centres in the north andeast of the country at a cost of Rupees 260 million, US$5.7 million (€4.5million), both of which are strongly supported by the current TKS network. Thecompany plans in due course, to expand this network across India. Mr Homi Khusrokhan, Managing Director, Tata Chemicals Ltd, said "We are very pleased to announce our entry into fresh produce. The experience ofour TKS network gained over the years coupled with expertise in agronomy, givesus a unique edge in this business. Total Produce brings with it a wealth ofknowledge, experience and a proven track record of success in this sector. Weare delighted to partner with Total Produce in this new and exciting venture totake fruit and vegetable production and distribution in India to internationalstandards and, at the same time, ensure improved incomes for farmers." Carl McCann, Chairman of Total Produce, added "We are very pleased to have entered into the joint venture with a companybelonging to a highly reputable group like TATA. We believe India, with its fastgrowing economy and one of the world's largest populations provides greatpotential to build a large and successful business. India is one of the largestproducers of fresh produce in the world." Total Produce plc 2 February 2007 For further information, please contact: Brian Bell, Wilson Hartnell PR Tel: +353-1-669 0030 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TOT.L