THE MARKET POTENTIAL OF FRESH CUT FRUITS AND VEGETABLES IN THE HORECA SEGMENT

Submitted By: Gunjan Gupta

Organizational Structure

Jubilant Bhartia Group

Jubilant Life Sciences

Jubilant Industries Ltd.

Jubilant Retail

Jubilant Food Works

Dunkin Doughnuts

Jubilant Enpro

Jubilant Energy

Jubilant Motorworks

Dominos Pizza

Jubilant Fresh

Company Profile
A new venture by Jubilant Enpro. Jubilant Fresh, as an organization is involved in providing Fresh-Cut & Whole Vegetables in the HoReCa Segment. The company strives to provide its customers with customized solution for quality vegetables.

Department Structure

JFPL

Purchase Department

Marketing and Sales

Operations

Quality and Assurance

Human Resource

Finance

Objectives
To learn about the business and to assess the market potential of Fresh Cut Fruits & Vegetables To develop the business and transform leads for JFPL To assess the needs of the Target Group in HORECA and its potential for association with JFPL To identify Key Accounts and develop strategies for alliances with JFPL

Potential Customer Group

HOTELS
Branded Hotel Chains, Star Hotels, etc. Taj, Oberoi, ITC, Radisson, Hilton, Country Inn & Suites, Sarovar Hotels, etc

RESTAURANT
Branded Restaurant Chains, Fine Dining, Multicuisine/ Specialty Mainland China,,, Moti Mahal, Barbeque Nation, etc.

CATERERS
Corporate caterers, Institutional caterers, Party caterers, etc Sodexo, Tulip, IRCTC, Sai Poorna, etc.

QSRs
Branded QSR Chains, Regional QSR's Dominos, KFC, Subway, Soya Express, Wah Ji Wah, Nizam's, Papa John, etc

st 1 Year Targeted

Segment

Restaurants

QSRs
Fine Dining

Corporate caterers

Institutional caterers Party caterers, etc.

Caterers

The Operational Process

Refrigerated Truck
Farm

Washed in chlorine before cutting Cut by Hand and Machine Special Machines and packaging

Refrigerated Truck
Consumer

Fresh Fruits and Vegetables hand picked from farms

Processing Plant

Transporting via refrigerated vehicles

KAM - Process Flow

Account Identification Understand Customer specific needs Analyze Customer Needs Vs. JFPL Capabilities Build Business Case

No

Conflict resolution Internal/External

Feedback System

Activate Account Manage Account

Business Case Approval

Build Account Tracking/ Report/ Variance Analysis

Yes

Data Required from KA

Customer CTG (Core Target Group)

Customer F&V (Fruit & Vegetable) basket Quantity of each F&V purchased in a month (preferably last month) Source of procurement Customer readiness Article wise monthly consumption Present TOT (Terms of Trade) with vendor Current vendor details Current Buying Rates Number of clients served per day Number of meals served per day Credit Period ; etc

Observations
Quality
B Grade Quality Vegetables used

Terms of Trade
Generally, Clients enter in short term contract with Vendors High Credit Period ( 45- 60 days) given by Suppliers In case of Bad Quality, Vegetables either dumped or replaced in next lot

Observations( Cont.)
Services
Door to Door Delivery Multiple Deliveries Unloading of Vegetables is done by Suppliers Labour

Miscellaneous
Non- availability of cold storage facility

Potential Business Model Insights

Cut Vegetables more suitable for QSR Segment Initially, start business by supplying Whole Vegetables and gradually convert them into Cut Segment Health care organizations are interested in fruits, specially cut fruits Clients interested in half yearly or yearly contracts with JFPL

Potential Business Model Insights (cont.)

Scepticism is there for Cut Vegetables Reasons:
Increased in the production cost Reduction in shelf life Unavailability of storage area for cut veggies ( cold storage), which will lead to multiple deliveries and ultimately lead to logistics cost Appearance / Discoloration / Texture Decay / Contamination Aroma and flavour Best Before/Use by dates would be mentioned are not ? Compatibility, where mixed vegetable combinations are packaged E.g.. Salads ; where carrot , radish , onion , beetroot , all are required.

Recommendations & Suggestions

Best way to enter this market and then scale up this business Entry Initially, in case of whole vegetables, JFPL rates should be less in comparison to the Supplier rates Quality Assurance should be given to clients Give Productivity Discounts to the clients having high basket value and lure them for cut veggies Offer Early Bird discounts If procuring veggies from farmers, then we can start some Farmer Benefit Schemes Educating clients on handling/ using cut veggies

Recommendations & Suggestions (Cont.)

Scale up Online order facility FAM Tour of the plant to our prospective clients Enter into long term contracts with the clients Benefit schemes can be given to the clients who are entering into yearly contract with JFPL Volume based incentive schemes

Final Key Accounts

S.No. 1 2 3 4 5 6

Client Fastrax Palki Caterers Par Maker PAN India Kwality Caterers G Vision Apollo Hospital, Jasola Professional Caterers

Contact Person Dr. Ponsingh R. Mr. Anil Shukla Rahul Handa Rahul Massey Dipankar Das Deepak Arora

Profile Sr. Food Technologist Owner Owner Chief Chef Purchase Manager Owner

Converted In Pipeline Striked Off 7 Mr. Ankur Singh Purchase Officer

Mr. Vipul Paul

Owner

Thank You