KPN Farm Fresh, a Tamil Nadu-based fruits and vegetable retail chain, has achieved extraordinary success, starting from humble beginnings as a single pushcart to a thriving retail chain valued at Rs 800 crore after private equity firm WestBridge Capital recently acquired a majority stake in the company in an all-cash deal for about Rs 550-600 crore.
KPN Farm Fresh, known for its ubiquitous presence across Tamil Nadu, is a shining example of how a family-run business can evolve into a thriving enterprise.
Short for Kovai Pazhamudhir Nilayam, the company began as a single pushcart in Coimbatore in the 1960s and transformed into a successful business empire that remains under the family's management.
After the WestBridge deal, 30 percent of the company will be held by the promoters, and Senthil Natarajan, the current Managing Director, will retain his position at the helm of operations.
The success story of KPN can be traced back to 1965 when Senthil's father, R Natarajan, dropped out of school along with his older brother to sell fruits and support their family after the death of their father, who was the sole breadwinner.
With a meagre investment of Rs 300, the brothers opened their first store named 'Pazhamudhir Nilayam.' They introduced the concept of fair, fixed prices and revolutionised the market by selling items based on weight instead of dozens.
The brothers encountered a slump in sales, which prompted them to venture into fruit juice. Their juice was not diluted with water and attracted customers, leading them to eventually purchase fruits as well. And business boomed.
The establishment of KPN Farm Fresh in 2012 marked a significant milestone for the company. With a 60 percent stake, Senthil and his family members solidified their commitment to expanding the business. Today, KPN operates from two warehouses—a 20,000 square feet facility in Coimbatore and a massive 1.5 lakh square feet warehouse in Vanagaram, on the outskirts of Chennai.
Read: WestBridge Capital buys majority stake in Tamil Nadu-based Kovai Pazhamudhir Nilayam
The company now has revenues of Rs 400 crore and profitability, and is now setting its sights on expanding into other southern states.
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