Mr DS Bains, managing director, Markfed, said that Rabo will play an important role in identifying potential partners for a joint venture to help Markfed compete in the domestic as well as foreign markets.

Talking to The Financial Express, he said, "A joint venture will be of considerable assistance in forging market alliances, especially for exports."Rabo will also provide a list of potential customers and negotiate with them on behalf of Markfed. Its existing contacts with various global retail chains will be utilised to analyse the market for fruits and vegetables.

The tie-up visualises a sound product-market strategy that incorporates prudent financial norms and achieves target returns on capital, he said.Rabo is a 75 per cent-owned subsidiary of the $20-billion Rabo Bank, a Netherlands-based global bank focusing on food and agriculture.

As part of the tie-up, Rabo will carry out a detailed analysis of the business operations of Markfed's processing plants and identify specific fruit and vegetables to focus on and outline a suitable strategy for the segment. Rabo will also assist Markfed in the upgradation of its cannery at Jalandhar. Familiarising Markfed with contemporary technologies involved in packaging is also part of the deal, for which Rabo has received consideration from Markfed. Value addition measures like packaging in fresh form, quality enhancement through better storage, processing and freezing etc will be recommended.