Total Produce, the general produce division spun off from fruit group Fyffes at the start of the year, has entered into a joint venture with Indian group Tata Chemicals to create distribution facilities for fresh fruit and vegetables across India.

Initially, the two companies will invest €4.5 million in the development of two centres in north and east India, with the aim of opening more across the country in the future.

Carl McCann, chairman of Total Produce, said the company had been looking at the Indian market for a considerable time and that while it already had a few small stakes in businesses in the region, this particular venture represented a great opportunity for the group.

"If you are going to go into a place that is a good distance away, it is better to do it with a partner," he said, adding that the distribution venture has the potential to be very big for the Irish company.

Tata Chemicals, which is part of the Tata Group that is taking over European steelmaker Corus, already operates a network of agri-service centres around the country.

These units, known as Tata Kisan Sansar (TKS), have well-established relationships with local farmers, something Total Produce is hoping to use to build the new business.

The venture marks Tata Chemicals' first foray into fresh produce.

Homi Khusrokhan, Tata's managing director, welcomed the agreement, saying the combined expertise of the two groups gives the business a unique edge.