International Journal of Sales & Marketing

Management Research and Development (IJSMMRD)

ISSN(P): 2249-6939; ISSN(E): 2249-8044
Vol. 5, Issue 3, Jun 2015, 1-8
TJPRC Pvt. Ltd.

ORGANISED AND UNORGANISED SEGMENT OFFRESH FRUITS

AND VEGETABLES IN DELHI AND NCR
JOLLY MASIH
Research Scholar, Department of Agribuness, Institute of Agribusiness Management,
S. K. Rajasthan Agricultural University, Bikaner, Rajasthan, India

ABSTRACT
This study targeted all the front end retailers including organised as well as unorganised players. During 2011-12,
total annual arrival was 45.04 lakh MT out of which fruits occupied 21.25lakh MT, and vegetablesshared 23.80 lakh MT.
Temporary shops were highest in number and sold maximum amount of fruits and vegetables and in Delhi NCR region.
Permanent shops were relatively less in number. Findings indicated that Mother Dairy (Safal) was the market leader in
fruits and vegetables segment with largest number of outlets (Exclusive outlets), followed by Reliance fresh which worked
on mixed strategy of Mart, Hyper Market and Super Market. Likewise Walmart ( Easy day), Aditya Birla (More).Contrary
to this Mother Dairy (Safal), Big Bazaar, Big Apple, KBFPS and Auchan had adopted single retail format which has
created a strong brand image in the minds of consumers.
Potato, Onion and Tomato were major contributing vegetables (more than 60%) followed by Chilli in consumer
basket, but the percentage of other vegetables kept on changing with demand and the season. From April to June, Mango
was the market leader.From July to February, Apple was the market leader. Mosambi, Papaya and Banana almost had
shown a static growth throughout the year. Demand for water melon had also increased over the time but it washighly
seasonal in nature and was available only in summers.
In the supply chain of different fruits, maximum number of intermediaries lies in procurement of Apple and
Mango. For Tomato and Onion proper mapping was required as they came from different part of the country.
It was recommended that temporary shops in unorganised retail could be allotted some specific areas by
government. Even concepts like Riatu Bazaar could also be tried. Small shops could be created and could be given on
nominal rent to prevent wastage and maintain hygiene and cleanliness which was not possible by selling vegetable
roadside. In the supply chain of different fruits and vegetables majority of opportunity for the retail giants and HORECA
segment laid in Apple and Mango.

KEYWORDS: Unorganized Retailers of F & V, Organized Retailers of F & V, HORECA, (Hotel/ Restaurant/ Caters)
Segment, Consumption Pattern of F&V, Supply Chain of Fresh Fruits and Vegetables, Azadpurmandi

INTRODUCTION
Major part of F&V supply to Delhi wasorganised through regulated markets of Delhi State Agricultural
Marketing Board (DSAMB). There were four regulated F&V markets in Delhi, namely: Azadpur, Okhla, Keshopur and
Shahdara. Small part of F&V was also procured by retailers directly from field. With this background, the study was
conducted to understand the current supply system of F&V in Delhi NCR.

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editor@tjprc.org

Jolly Masih

This study targeted all the front end retailers including organised as well as unorganised players.During 2011-12,
total annual arrival was 45.04 lakh MT out of which fruits occupied 21.25lakh MT, and vegetablesshared 23.80 lakh MT.
Temporary shops were highest in number and sold maximum amount of fruits and vegetables and in Delhi NCR region.
Permanent shops were relatively less in number. Out of total F&V arrival in Delhi, around 70 per cent was consumed in
Delhi & NCR, and rest was further forwarded to other markets. Delhi & NCR consumed approx. 8500 - 9000 MT of fruits
& vegetables. Dhamija (2007) reported that the key drivers of organized food retailing included increasing need for
convenience and choice, availability of quality retail space and investment in the upstream supply chain. Fernie (2010)
studied the supply chain of apples from Kashmir to Azadpurmandi. He stated that difficulty in travelling and involvement
of large number of middlemen was responsible for heavy price rise in apple supply chain. The specific objectives of the
present research paper were:
Specific Objectives

Consumption pattern of unorganized retailers

Consumption pattern of Organized Retailers

Consumption pattern of HORECA (Hotel/ Restaurant/Caters) segment

METHODOLOGY
Locale of the study:Major organised and unorganised fruits and vegetable retailer in Delhi NCRAzadpurMandi of
Delhi. HORECA segment was also a part of this study
Technique of Data Collection:
Both primary and secondary data were collected for the study.Primary Data were collected through in depth
face to- face interviewwith the respondents in Big Bazaar, Mother Diary (Safal), Reliance Fresh, Walmart (Easy day),
Big Apple, Aditya Birla (More), KBFPS, Spencer, Auchan, APMC offices. Secondary Datawere gatheredfromYearly and
annual reports of data of fruits and vegetables from 2007-2012 from APMC office, Official websites of Delhi Agriculture
Marketing Board and National Horticulture Board
Research Design
Both exploratory and descriptive researchdesigns were employed.
Study Approach
The method adopted in the study relied on semi-structured informal interviews (for traders in Azadpurmandi), and
open ended questionnaire (for organizedretailers)
Population for the Study
In the population for the study unorganized retailers, organized retailers, hotels, caters, canteens, traders supplying
fruits and vegetables in AzadpurMandi and dealers at AzadpurMandi were considered.
Sampling
Organised Retailer: All the major organized retailers dealing in F&V category were selected on Judgemental
basis
Impact Factor (JCC): 5.7836

NAAS Rating: 3.13

Organised and Unorganised Segment Offresh

Fruits and Vegetables in Delhi and NCR

Number of organized retailers: 9

Number of traders: 20

RESULTS AND DISCUSSIONS

Table 1: Consumption Pattern for Unorganised Retail in Delhi & NCR
Format

No. of
Units

Push Carts
Temporary Shops
Permanent Shops
Total

15,000
20,000
500
35,500

Per Day
Consumption
Per Unit
150 Kg
200 Kg
400 Kg
750 Kg

Percentage Contribution in
Total Arrival Quantity of
F&V
21.00
47.00
2.00
70.00

Total
Consumption
2200 MT
4000 MT
150 MT
6200 MT

(Source: Mother Dairy (Safal), Temporary shops included road side vendors and weekly vegetable markets in
different areas.)
From table 1, it wasevident that Temporary shopswere highest in number, and sold maximum amount of fruits
and vegetables and in Delhi NCR region. People preferred to shop from weekly vegetable markets and road side vendors
due to availability of more choice and chances to bargain with the vendor. Under weekly vegetable markets, vendors from
nearby regions exhibited their stuff at best possible prices for the consumer. They worked on concept of High quantity
and low margin. Temporary shops were one of the oldest practices in this market and were convenient to adjust as per
space availability, another reason was that most of vendors were poor and could not afford of build permanent shops.
Push carts were being run on contract by few big vendors, which used to pay to push cart vendors on daily basis or profit
basis. Very few push cart vendors actually owned those push carts, but still they made a good business as they sold door to
door and en-cash time utility. Permanent shops were less in number and mostly being owned by medium to large vendors.
Table 2: Organized Retail Formats in India
Format
Mart
Hypermarkets
Supermarkets
Convenience Stores
Exclusive outlets

Organized Retail Chains

Reliance Fresh
Big Bazaar, Reliance Fresh
Reliance Fresh, Big Apple,
Aditya Birla Group (ABP)
Walmart (Easyday), KBFPS
Motherdairy (Safal)

Size(sqft)
60,000 -70,000
25,000- 50,000
3,000-5,000
400-2,000
Less than 400

Source: Primary data collected from pre- structured questionnaire)

Interpretation
Reliance fresh adopted mixed strategy of different retail formats like mart, hypermarkets and supermarkets to
cover larger consumer base. Other major players like Big Bazaar, ABP, Walmart etc. chose a particular format and
continued to perform in that only.

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Jolly Masih

Table 3: Retail Format and Number of Outlets of Major Organised Players

Retail Format
Name of
Retailer
Mother Dairy
(Safal)
Reliance
Fresh
Big Bazaar
Walmart
(Easy day)
Big Apple
Aditya Birla
(More)
KBFPS
Spencer
Auchan

Total
Outlets

Mart

Hyper Mart

Super Market

400
124

Exclusive Outlet

Small
Convenient
Store

400
2

22

22

43

35

120

40
35

25

23

45
11
2

9
2

45

(SOURCE: Primary data collected from pre- structured questionnaire)

Interpretation
Mother Dairy had maximum outlets, all were small exclusive outlets referring to generic brand identity of Mother
Dairy (Safal). Supermarket was most trusted format as it supported good customer population and allowed organization to
offer wide variety of fruits and vegetables due to sufficient floor space.Walmart (Easy day) and Aditya Birla (More) tried
new concept of small convenient store with less investment and covering different localities to attract the consumers from
different areas.
Table 4: Sales of Fruits and Vegetables by Major Organised Players

(Source: Primary data collected from pre- structured questionnaire)

Table 4 indicated thatMother Dairy (Safal) sold maximum quantity of fruits and vegetables in proportion of 30%
and 70% respectively, whereas other companies mainly sold fruits and vegetables in nearly 50-50 percentage. Mother
Dairy (Safal) had major emphasis on vegetables like Potato, Tomato, Cauliflower and Cabbage. Reliance fresh was

Impact Factor (JCC): 5.7836

NAAS Rating: 3.13

Organised and Unorganised Segment Offresh

Fruits and Vegetables in Delhi and NCR

concentrating their efforts on fruits like Mango, Banana, Apple and exotic fruits like Kiwi. Big Bazaar was playing safe
with seasonal fruits and vegetables.
Potato, Onion and Tomato were major contributing vegetables (more than 60%) followed by Chilli in consumer
basket but the percentage of other vegetables kept on changing with demand and the season.
From April to June Mango was the market leader but from July to February Apple was the market leader.
Mosambi, Papaya and Banana almost showed static growth throughout the year. Demand for water melon had also
increased over the time but it washighly seasonal in nature and was available only in summers.
Table 5: Different Sources for Procurement of Fruits and Vegetables by Major Organised Retails
Retailer

National Sourcing
Quantity
Percentage
(MT)

Mother Dairy
(Safal)
Reliance Fresh
Big Bazaar
Walmart (Easy
day)
Big Apple
Aditya Birla
(More)
KBFPS
Spencer
Auchan

Mandi Sourcing
Quantity
Percentage
(MT)

Regional Sourcing
Quantity
Percentage
(MT)

25

32,125

25

32,125

50

64,250

25
25

11,675
6,000

25
25

11,675
6,000

50
50

23,350
12,000

25

3,300

50

6,600

25

3,300

100

12,800

100

8,960

100
100
100

6,200
3,168
1,100

(Source: Primary data collected from pre- structured questionnaire)

It was apparent from Table 5 thatMandi sourcing including Azadpurmandi and other local mandies of Delhi,
regional sourcing meant procuring fruits and vegetables within the reach of 100 kms of Delhi and National sourcing was
more than 100 kms. Mother Dairy, Reliance fresh and Big Bazaar mostly went for regional sourcing for crops like Potato,
Tomato, Mango, Banana etc. National sourcing was done especially for Apple, Mango, Onion, and Banana and partially to
Potato, Tomato, Cole crops etc.In the supply chain of different fruits maximum number of intermediaries laid in
procurement of Apple and Mango. Especially in case of Apple which was mainly procured from hilly areas lot of
intermediaries were involved, this increased the consumer price. For Tomato and Onion proper mapping was required as
they came from different part of the country. Availability of Banana sometimes became less inmandies as most of
Bananas went to ripening chambers for round the year sales. Direct procurement from farmers reduced the price upto 30%
Buying and procurement was most challenging aspect and profit of company laid upon reasonable procurement
prices.
Table 6: Consumption Pattern of HORECA Segment
Segment
Hotels, Bed &
Breakfast
Restaurants
Organized
Caterers

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No. of Units in Delhi & NCR

Per Day Requirement of the

Segment in MT

1850

22.00

10800

300.00

169

15.00

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Jolly Masih

Table 6: Contd.,
Other Institutes
Total Requirement of Horeca Segment

300.00
637.00

{Source: Mother Dairy (Safal)}

Data incorporated in Table 6 made it clear that HORECA segment of Delhi NCR region was dominated by
Restaurants which consumed about 300 MT fruits and vegetables per day due to large population of students and working
couples who prefered to do breakfast and mostly lunch in these restaurants due to lack of time and high travel distances.
Different institutions like hospitals, schools (midday meal), colleges etc, also consumed about 300 MT fruits and
vegetables per day. Hotels, Bed n breakfast, and organised caterers consumed about 37 MT fruits and vegetables per day.
Table 7: Total Consumption Pattern Organized, Unorganized and HORECA Segment
Particular

Demand per Day

(In MT)

Percentage in Total
Consumption

Traditional
Outlets

6025.00

71.0

Organised
Retailers

670.00

8.0

Institutional sell

640.00

7.0

Other Channels

780.00

9.0

Wastage

425.00

5.0

Total

8540.00

100

(Source: Mother Dairy and Data collected from pre- structured questionnaire)
The findings of Table 7 indicated that Delhi and NCR was being dominated by Traditional outlets mainly by
Punjabi, Rajasthani and Lucknowi since it was very old city. Organiser retailers like Mc. Donalds, Subway etc were also
making their way and coming up with increased share. High wastage was also an important issues to be worked upon.

CONCLUSIONS
In Delhi NCR region about 70% food retail came under unorganized retail which mainly included push cart,
temporary shops and permanent shops. Amongst three of them temporary shop were highest in number and sold maximum
amount of fruits and vegetables and in Delhi NCR region people prefered to shop from weekly vegetable markets and road
side vendors due to availability of more choice and chances to bargain with the vendor. Under weekly vegetable markets
vendors from nearby regions exhibited their stuff at best possible prices for the consumer. They worked on concept of
High quantity and low margin.
Mother Dairy (Safal) was the market leader in fruits and vegetables segment with largest number of outlets
(Exclusive outlets), followed by Reliance fresh which worked on mixed strategy of Mart, Hyper Market and Super Market.
Likewise Walmart( Easy day), Aditya Birla (More). Spencer also worked on mixed strategy of more than one retail format;
this helped them to grab the consumers of different income groups at different location.
Mother Dairy worked on strategy of area expansion with help of low cost exclusive outlets to cover wide area.
Each of their outlet had about 0.88 MT fruits and vegetables per day which was quite less than the outlets of Big Bazaar or
Impact Factor (JCC): 5.7836

NAAS Rating: 3.13

Organised and Unorganised Segment Offresh

Fruits and Vegetables in Delhi and NCR

Reliance Fresh which worked on strategy of Mart, Hyper Market, Super Market to attract large customer base under single
roof.
Potato, Onion and Tomato were major contributing vegetables (morethan 60%) followed by Chilli in consumer
basket but the percentage of other vegetables kept on changing with demand and the season.
From April to June Mango was the market leader but from July to February Apple was the market leader.
Mosambi, Papaya and Banana almost showed static growth throughout the year. Demand for water melon had also
increased over the time but it was highly seasonal in nature and was available only in summers.
HORECA segment also consumed a major chunk of fruits and vegetables about 637 MT coming to Delhi NCR
region and thus provided an opportunity to explore this further.
According to the study HORECA segment of Delhi NCR region was dominated by Restaurants which consumed
about 300 MT fruits and vegetables per day. Different institutions like hospitals, schools (midday meal), colleges etc, also
consumed about 300 MT fruits and vegetables per day.
Hotels, Bed n breakfast, and organised caterers consumed about 37 MT fruits and vegetables per day.
In the supply chain of different fruits maximum number of intermediaries laid in procurement of Apple and
Mango. Especially in case of Apple which was mainly procured from hilly areas lot of intermediaries were involved, this
increased the consumer price.
For Tomato and Onion proper mapping was required as they came from different part of the country.

RECOMMENDATIONS

Temporary shops in unorganised retail could be allotted some specific areas by government. Even concepts like
Riatu Bazaar could also be tried. Small shops could be created and could be given on nominal rent to prevent
wastage and maintain hygiene and cleanliness which was not possible by selling vegetable roadside.

For push cart vendors, push carts working on cycle model having engine of scooter could be tried which saved lot
of energy required in pushing the cart. Also push cart vendors shall be made aware of different micro-finance
schemes under which they could buy their own push cart instead of taking it on rent.

Exclusive outlets and small convenient outlets were performing well in Delhi and NCR region due to high area
coverage. Other retail giants could explore this as new format and could invest in this.

Procurement was most challenging task of organised retailers, following opportunities could be explored for
successful procurement:

For Tomato and Onion proper mapping was required as they came from different part of the country and at
different time, so hub and spoke model seemed to be best for their procurement

Another opportunity laid in direct procurement of Banana from the ripening chambers instead of procuring it
from mandi. It would reduce the interference of intermediaries at different levels as farmers sold their produce
directly to ripening chambers. Another good option could be ifretail giants developed their own ripening
chambers.

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For Potato, contacts should be made with cold chain storage houses to assure year round supply, as they were
responsible to supply potato in mandi even in offseason. Another good option could be if retail giants develop
their own cold storage house, this would further reduce their cost. Value chain model seemed to be best for its
procurement.

In the supply chain of different fruits and vegetables majority of opportunity for the retail giants and HORECA
segment laid in Apple and Mango. As these fruits, if procured directly through farmers, then the cost can reduced
up to 30% by reducing the interference of intermediaries at different levels. Value chain model seemed to be best
for their procurement.

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Sudhakar G. P. (2005). Retailing in India- whats up?

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Indian Journal of Marketing, 35(6),17

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Impact Factor (JCC): 5.7836

NAAS Rating: 3.13