Overview
So Prime Fresh operates in Fruits & Vegetable Industry & Have Expertise in Souring , Processing & Distribution in the whole F&V Industry having experience of 14 years in this space.
Business
So what basically Prime Fresh does is that. It procures fruits & Vegetables from Farmers. It buys their entire produce , Hence farmer doesn’t need to look for other Alternatives to sell his produce. Currently they have around 35,000 Farmers connected with them . And Prime Fresh Wants to take this number to 50,000 in FY22. This is how they procure different different fruits across the india -
After procuring those Fruits & Vegetables from Farmers Prime Fresh Sorts , Grades & Packs them . They have 15 collection & Distribution locations. They also have Cold storage & Ripening Capabilities with them. With over 25 Post-Harvest Storage Units.
Their expertise in this space is reflected by their wastage %. Prime has wastage % below 3% in F&V Supply Chain. They are also tying up with more Cold Storage & Looking to venture into more & more Integrated pack houses. Which will help it in Exports As well as Domestic business.
Now these Fruits & Vegetables are supplied to their customers which have a large reach. Their customers are companies such as - Big Basket, Swigy, Reliance Fresh , Amazon, Zomato , Adani. This is list of all their customers-
This is their B2B Business . They recently have also started their own B2C E-Commerce platform where they sell Fruits & Vegetables. Here is the link to their Website , Go and check it out -
Product Portfolio
The company’s current product portfolio is -Mangoes, Pomegranate, Apple, Tomatoes, Onion, Orange, Grapes & Wants to expand it to more & more fruits & Vegetables
Industry
This industry has humongous potential for exports. as India is the largest producer of Fruits & Vegetables still india has just 1% market share in the whole exports markets.
Another Potential is the shift from the unorganized to the organized.
The organized players like Prime Fresh have a humoungous opportunity as currently only 8% of the market is ogranized and it is projected that in the next 8 years it will be around 40% . Almost 3X the size in 8 years.
If we take the market share of prime in this industry as 0.4% , Prime’s vision is to make the revenue of around 2000 Cr . And the current revenue of the company is just 65 Cr.
Management
The management of the company is educationally qualified & has experience in the FMCG Industry. Like for example the Chairman of the company - Jinen Ghelani has 25 Years of experience in this field of FMCG and has previously worked at Marico
Risks
- Seasonality
As you can see that the Fruits & Vegetables are seasonal hence the business will have this risk of seasonality of fruits & vegetables. The Availability of different fruits can be seen in this chart below -
To mitigate this risk Prime Fresh is constantly adding more & more fruits & Vegetables & Increasing their Product Portfolio. Currently their Product Portfolio has - Mangoes, Pomegranate, Apple, Tomatoes, Onion, Orange, Grapes,
And they want to diversify into - Banana, Green chilly, Sweet corn, Okra, Lemon and Drumsticks
- Low Margin Business
The company has very less margin of around 5.6%
- Lack of infrastructure for Exports
India doesn’t have lack of infrastructure for Exports of Fruits & Vegetables. To Solve this risk the company is doing Tie up with more & More Cold Storage’s.
Disclosure- Not Invested
