Alliance Group looks to grow presence in the Indian market

By Aidan Fortune

- Last updated on GMT

Alliance Group looks to grow presence in the Indian market

Related tags New zealand India Lamb Alliance Group Packaging equipment & materials Processing equipment & plant design

New Zealand co-operative Alliance Group has acquired a stake in its Indian partner QualityNZ in an effort to capture more value from market.

It has purchased 10.4% of QualityNZ, which supplies New Zealand’s products such as red meat, seafood and wine to India, for an undisclosed sum.

QualityNZ’s other shareholders include New Zealand cricketing legends Sir Richard Hadlee, Stephen Fleming, Daniel Vettori and Brendon McCullum.

Alliance Group has been the exclusive supplier of New Zealand red meat to QualityNZ since the company’s inception seven years ago. In 2018, Alliance acquired its Asia-based sales and distribution agent, which is now known as Alliance Asia.

 “This investment in QualityNZ is consistent with the co-operative’s strategy of moving up the value chain and having an in-market presence in key regions,”​ said Alliance Group chief executive David Surveyor. “India’s fast-growing middle and upper classes have a real appetite for New Zealand lamb and value the Pure South story of grass-fed red meat produced naturally.

“We are targeting the higher socio-economic category, which is represented by more than 200 million people. It is estimated this number is expected to grow strongly within the next decade and India is forecast to soon exceed China’s GDP.”

Surveyor added that the investment in QualityNZ will ensure Alliance Group is “closer to its customers and can better understand their needs and expectations”.

“This will provide us with deeper connections to this important market and lift Alliance’s visibility and engagement across all steps of the supply chain.

“It will also enable Alliance to effectively get in on the ‘ground floor’ of a country which one day will be the next China. For us, this is an investment for the long-term. As a co-operative, we can take an inter-generational view of investments for the benefit of our farmers.”

Geoff Allott, chief executive officer of QualityNZ, said: “Alliance Group and QualityNZ have formed a proven partnership over the past seven years. This investment is a natural next step to drive further growth in India and will improve the returns and add value to both businesses.

“QualityNZ has been focused on introducing Pure South lamb into the five-star hotel market, but is also making strong inroads into the restaurant, catering, organised retail and e-commerce channels.”

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