Owned by over 6,000 smallholders, Sahyadri Farms is the largest farmer-owned integrated value chain operator in the Fruits & Vegetables sector in India. This is no small feat considering India comes in only after China as the world´s greatest agricultural output producer.
Sahyadri Farms was founded by these smallholders to increase their profitability by centralizing access to domestic and export markets, improving yields and quality through access to planting material of the highest quality, and providing high-quality infrastructure for processing the supply chain. The company works with more than 26,000 farmers across 40,000 acres of land for crops such as grapes, tomatoes, mangoes, bananas, pomegranates, and sweetcorn, among others, handling over 245,000 MT of food produce in Financial Year 2022-23, and generating revenues in excess of EUR 100 million.
Incofin invested EUR 8M in equity in 2022 via the India Progress Fund, recognizing Sahyadri Farms’ strong innovation potential for driving positive change in the agricultural landscape across India together with its strong management and governance.
IPF´s investment was significant for the agri finance sector in India: it propelled Sahyadri as the first farmer-owned company in India to raise private equity capital. Incofin´s investment created a co-investment consortium of EUR ~40 million with participation by Korys, Proparco, and FMO. As the consortium leader, Incofin has played a strong role in corporate strategy, climate strategy, governance & risk frameworks, and facilitated technical assistance grants for its climate initiatives.
Incofin´s vision for Sahyadri is very much anchored in the company´s drive for technological leadership in agriculture, with tech integration encompassing cutting-edge technologies like biotech and digital tech. To do so, the company tackles tech innovation starting with inputs, using scientifically produced planting material, including patented varieties, an in-house tissue culture lab, farm mechanization, and the implementation of Internet of Things (IoT) tools such as weather stations and soil sensors. On the processing side, Sahyadri has seamlessly integrated digitalized supply chain systems, incorporating lean and efficient waste reduction practices to leverage biogas and other waste byproducts.
“I am immensely proud of the strides we have made in empowering smallholder farmers and revolutionizing sustainable agriculture in India. Our collaboration with Incofin and other co-investors underscores our commitment to innovation and addressing environmental challenges. Through this partnership, we are not only enhancing our technological leadership but also charting a course towards a greener, more resilient future for our farmers and communities.” – Vilas Shinde Chairman and MD at Sahyadri Farms.
Intending to continue its innovation leadership, Sahyadri has partnered with Incofin for a technical assistance project to mobilize the best international methodologies for assessing their climate impact, developing a carbon emissions mitigation strategy, and creating a pathway for climate change adaptation for its 26,000 smallholder farmers.
Learn more about the Incofin India Progress Fund (IPF), investor in Sahyadri Farms.