Case Study: Supply Chain Of Adani Agrifresh Company
“Supply chain of Adani Agrifresh company “
DEPARTMENT OF MANAGEMENT STUDIES,
INDIAN INSTITUTE OF TECHNOLOGY, NEW DELHI
Ram being chief operating officer (COO) of Adani Agrifresh limited has to take a lot of important decision towards his apple business in India. Being an agribusiness veteran with an excellent record of accomplishments across several vertical agribusiness chains, he saw much opportunity for the company. Ram was keen on significantly expanding the business by integrating its operations from farm to consumer and to emerge as the undisputed leader of India’s fresh produce sector.
Company background and Apple market in …show more content…
The marketing of agricultural products in India are decided by the state governments and is according to this act. According to this act, the agricultural products in India are to be sold only in the Government regulated markets having poor infrastructure. Here, a lot of intermediaries come into play due to which the price varies from one market to another. Also according to this act, entrepreneurial traders have restriction to buy the market produce. The local traders pay less attention to the storage, handling, loading and unloading and other issues which generally affect the sale of apples. Here, there are chances of farmers’ income getting down since traders have the buying …show more content…
The company ruled out the option of buying apples from mandis since the quality maintained there of not appropriate. Also the market system existing doesn’t provide any incentives to the growers. To ensure the quality of apples they buy, they directly contacted the farmers and communicated the required quality for the apples. As a result the farmers had a known choice regarding quality. Also before they purchase, they conducted firmness tests and maturity tests. Agrifresh officers check the fields and go through the practices growers undergo. Those apples which do not meet the quality are rejected. To avoid the over packing of apples, Agrifresh company invested in reusable crates and also scientific farming techniques are taught to farmers to build up preferred- buyer relationship. They also invested in computerized systems to grade the apples based on their weight, color and shape. By investing in controlled atmosphere systems, Agrifresh is able to store the apples in on-season and sell it in off-season. Also it has wide varieties of dealers all around India proving its logistical