ESIP Supermarket Grocery Supplies The proposed investment (Project) consists of up to US$25 million in equity for a minority stake in Supermarket Grocery Supplies Private Limited (SGSPL or the Company) in order to finance the expansion of the Companys wholesale distribution and supply business in India.  SGSPL, based in Bengaluru, India, is engaged in wholesale distribution and supply of groceries, provisions, fruits, vegetables and related household products. SGSPL is the principal supplier, and intellectual property licensor, on a non-exclusive basis, to bigbasket.com.  The Company provides its services across 9 cities in India and has plans to expand its services to over 20 Tier-2 cities (about a third of these in low income states) over the next two years. It has already started operations in 1 Tier-2 city in the last 2 months, and intends to keep growing its footprint.   The Project will help (a) increase the availability and quality of grocery products; (b) generate employment, build capacity and improve skill sets in this sector; (c) help develop supply chains and logistics infrastructure including agricultural logistics which are an integral part of developing efficient cities. The Project will achieve this by leveraging Information and Communication Technology (ICT) to manage logistics, and effectively connect farmers and other food and grocery providers to retailers for onward sales to end-consumers; and (d) support the development of small and medium enterprises (SMEs) in the supply-chain. The Project is also aligned with IFCs regional strategy as it provides strong linkages to the local economy and will promote inclusiveness through direct job creation in urban and semi-urban areas and by developing local supply chains.  SGSPLs model is focused on improvements in the supply chains for groceries through the following activities:  (i) Procuring fresh fruits and vegetables directly from farmers through its network of collection centers: the Company already has 4 operating collection centers and intends to grow this network to more than 15 centers across the country. (ii) Setting up best-in-class backend infrastructure: The Company uses technology (such as wireless handheld devices, automated and integrated inventory and warehouse management software), in addition to using optimized warehouse layouts, route and traffic planning, and cold storage and transportation systems to setup its backend infrastructure. This results in higher utilizations, lower inventory levels and lower wastage of raw materials, farm produce and time. (iii) Capacity building: The Company currently has more than 2,900 employees and third party workers who have been trained and deployed. Of this, more than 75% of staff are blue collar workers, who are deployed across the supply chain in distribution centers/warehouses, buying, merchandising, new facilities setup etc.  The Company has also rolled out a new service where is supplies groceries to kirana stores (mom-and-pop grocers), providing them the benefit of better inventory management and logistics. SGSPL uses its existing supply chain operations to supply groceries to kirana stores more frequently (on a daily or weekly basis),  thereby enabling them to manage less inventory and free up working capital, as opposed to traditional suppliers and distributors who supply a kirana store once every 20 to 30 days. i.	Inclusive growth: The Company is currently operational in nine cities, and plans to expand to more than 20 Tier-2 cities in the next two-three years. Over a third of the new cities into which expansion is planned are in Low Income States.   ii.	Supply chain linkages with farmers and small and medium enterprises: The Company''s growth will directly and indirectly benefit farmers by setting up collection centers which aggregate fresh agricultural produce directly from farmers, removing the need for middlemen and reducing the opacity of pricing to farmers. By 2020, the Company is expected to have developed relationships with over 3,000 farmers, up from 900 today. At collection centers, the Company hires field staff such as agronomists who engage with farmers and add value by providing advice on best practices. The Company plans to scale up to more than 15 collection centers, from 4 currently. The Company''s expansion will also benefit small and medium enterprises such as bakeries, specialty food suppliers and manufacturers of household products to expand their businesses through the Company''s platform. In addition, the Company also supplies its groceries to kirana stores, thereby enabling these small enterprises to leverage on the Company''s supply chain.  iii.	Employment opportunities: Continued business expansion through this Project is expected to create additional jobs, both directly and indirectly, at the sourcing, supply chain, and distribution levels, including in transportation and logistics. The Company has created more than 2,900 jobs (over 2,300 of these are blue-collar workers), and expects this number to grow to over 7,500 by 2020.   iv.	Skill development: The Company''s growth will enable skill development for hundreds of people, specifically blue-collared workers, in the areas of supply chain and logistics. Since the expansion will be focused on Tier-2 cities, including LIS, this training will be a useful skill development for these workers as it will be driven by the Company''s focus on training, best-in-class monitoring and efficiency practices.   v.	Better quality at affordable prices: The Company will drive better quality of grocery products by integrating deeper into the supply chain, sourcing directly from the farms and collection centers, and minimizing the wastage which results from multiple stakeholders handling the produce before it is sold. The Company also recycles its organic food waste though supplying it for biogas generation.