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Helping Indian farmers manage their companies more profitably and sustainably
Project


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Signature date
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Location
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India
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Financing tool
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Financing amount (Euro)
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11293337
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Financing details
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IRN 900m Equity Investment
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Customer
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Sahyadri Farms Post Harvest Care Limited
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Type of customer
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Company
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Country of headquarters
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India
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Project number
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PIN1115
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Environmental and social ranking
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B+
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Climate co-benefits
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Project with climate co-benefits
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Alongside impact investors, Proparco has invested in Sahyadri Farms, a leading Indian agricultural company. The investment will allow the company to implement concrete measures for climate change adaptation and mitigation, by increasing its share of renewable energy production to over 50%, and its zero-waste policy.
Client presentation
Sahyadri Farms was set up in 2011 by a former farmer, Mr. Shinde, in the form of a Farmer Producer Company, a cooperative which today has a network of about 15,000 fruit and vegetable farmers in the state of Maharashtra, in India. The group is now fully integrated into the value chain, from pre-harvest and post-harvest activities (fruit and vegetable sorting, packaging and processing) to distribution on both the Indian and international markets (B2B and B2C).
Sahyadri is today one of the leading players in the fruit and vegetable sector in India, as well as the largest exporter of grapes, with 17% of European market share. It also operates in 42 countries.
Project description
Proparco has co-invested in Sahyadri Farms, with Incofin, FMO and Korys, to finance the company’s expansion plan. It aims to develop post-harvest activities (new fruit and vegetable processing plants, development of new partnerships, additions of new crops and varieties), and to scale up the distribution network.
Project impact
This project is expected to have a number of social impacts:
- On the economic and social front, the project should create 4,400 jobs over the next 5 years and safeguard 84,000 jobs. The farmer members of the cooperative are assisted by Sahyadri Farms. They benefit from access to regenerative agricultural practices and high-quality equipment, which allows them to increase the yields and quality of their production, while reducing agricultural losses and the use of pesticides and fertilizers. The company provides a digital platform which informs farmers about high-yield crop varieties, agricultural inputs, the climate in real time and access to the market.
- On the climate front, the project has 23% of climate co-benefits given the regenerative farming practices, the phasing out of coal in steam production with biomass boilers, the increase in renewable energy production, and the potential for waste reduction and efficiency throughout the value chain.