Food Processing Hub in Punjab Haryana

Reliance Retail has acquired 20 acres of land from Haryana Government at Saha and Rai. They plan to build two food processing units at an investment of Rs 100 crore. The plants would be engaged in processing, packaging and distribution of fruits vegetables and milk products.

Reliance Retail is also planning to acquire at least 300,000 acres of land from the Punjab government for cultivation of fruits, vegetables and food grains. Holy!!! 300,000 acres ? Looks like a Massive Land Bank Scam.

Reliance has also tapped 1.5 lakh milk farmers across 3,000 villages in Punjab to procure 7 lakh litres of milk which would be converted into dairy based products – Butter, Ghee, Cheese etc. The strategy of Reliance is to use these private labels across all Reliance Fresh outlets and excess to be dumped to other retailers or exported whichever is lucrative depending on the market dynamics.

Looks like a very ambitious business plan for Reliance and this may not go well as it will be crippled with Logistics problems.