Agriculture, Food and Rural Business Emerging Business · · 2012-05-07Agriculture, Food and Rural Business ... • Mutual reliance and personal achievement through extended reach

Sankalp 2011 Social Enterprise Awards and Investment Forum www.sankalpforum.com Final presentation : May 4, 2011

KNIDS GREEN Pvt. Ltd.

Agriculture, Food and Rural Business

Emerging Business


SECTOR SNAPSHOT

• Size of the Industry- USD 30 Billion.

• Growth Rate- 9-10%

• Wastage- Industry Average- 30% to 40%

• Social Demographic, >70% of India’s Population.

Back End • Participants:

• SMAL Farmers • Landholding less than 20000

Sq. Ft.

• Smaller Economy of Scale

• Wastage- Approx. 10%

Front End • Participants:

• Unorganised and fragmented - More than 95% Market Share

• Organised Players- Less than 5% Market Share

• Wastage- Approx. 25-35%

SMAL: Small, Marginal And Landless


ORGANISATION PROFILE MISSION & VISION STATEMENT

o Sector/Industry focus o F&V Retailing and Supply Chain

Management.

o Work Profile o Creating Low Investment F&V

Retail Chain.

o Branding of Fresh Farm Produce

o Organizing & Professionalizing the Vegetable Supply Chain

o Creating farm-gate Backend Infrastructure for Fresh Farm Produce

o Advisors & Mentors

o Industry Experts & Luminaries

o Mission Statement

“To develop a model to increase income and generate employment at the grass root level by an equitable and holistic development.”

o Vision Statement

“Professionalizing the informal trade channel of fresh vegetables and creating gainful, dignified self-employment for the families dependent on agriculture sector.”

Sole Enterprise to offer Pre-Packaged Fresh Farm Produce


TRADITIONAL VEGETABLE SUPPLY CHAIN THE PROBLEMS

Producer

Local Level Mandi

City Mandi

Wholesaler

Agents/Arhati

Retailer

End Consumer

• Lack of Options at Farm gate • Rudimentary Farming Practices • Delayed Price Discovery • Distress Selling

• Price and Income Risk • 30% Wastage of Vegetables • Leftover Unsold Vegetables • Economy of Scale • 14-16 Hours of Working Time • Quality and Quantity of Vegetables

• Hygiene of the Vegetable (Mandi) • Fluctuation in Prices • Transaction Time

• No Value Addition • Channel Financing • Risk Free Income • Multiple Handling leads to Wastage & Quality Deterioration • Creating Information Asymmetry


SAMRIDDHII VALUE CHAIN THE PROBLEMS ADDRESSED

• Availability of Options • Advanced Methods of Farming Practices • Price Discovery over Phone • Assured Market for their produce

• Assurance of Quality and Quantity at reasonable price

• Fresh, Pure and Hygienic Vegetables • Fixed Prices • Lower Transaction Time

End Consumer

• Risk Free Assured Income • Advanced Designs & Models of Cart • Recollected by Samriddhii in the Evening • Collaborative, Formal & Modern Method

of Selling • Reduced Working Hours

• Value Addition to the Fresh Farm Produce • All Risks Absorbed from the Growers and Vendors • Reduction of Wastage to 5-7% • Providing Information Symmetry

SMAL: Small, Marginal And Landless


o Retail Customers

o Prepackaged Branded Fresh Farm Produce with Fixed Prices & Barcode Labels

o Assurance of Purity, Hygiene, Quantity and Freshness of Vegetables

o Convenient Purchasing & Reduced Transaction Time

o Traceability

o Mom & Pop Kirana Stores

o Prepackaged Branded Fresh Farm Produce with Fixed Prices & Barcode Labels

o Additional Source of Income with Minimal Handling Cost

o Risk Free Income

o Institutional Customers

o Professional Approach resulting into Higher Fill Rate

o Unique Pricing Methodology and Convenient Billing System

o Small and Marginal Farmers

o An Assured Fair Price Market for their Produce at their Farm gate

o Need to Focus only on the Production Constraints

o A Life of Identity and Dignity with Social & Financial Inclusion

o Vegetable Vendors

o New Generation Retail Unit with Risk Free Assured Income and Reduced Transaction Time

o Harnessing the Core Competency of Vegetable Retailing

o A Life of Identity and Dignity with Social & Financial Inclusion

USP of Samriddhii - Unique Price Discovery Mechanism - Branding and Packaging of Fresh Farm Produce - Flexibility, Adaptability and Responsiveness of Vegetable Supply Chain

VALUE PROPOSITION


CUSTOMER ANALYSIS

o Retail Customers

o Middle and Upper Segment of Society

o Young Professionals

o Student Segment

o Mom and Pop Kirana Stores

o Up-market Locations

o Willingness to Experiment

o Institutional Customers

o Large Hotels

o Restaurants with Professional Approach

o Educational Institutions

o Small and Marginal Farmers

o Small, Marginal and Landless Laborers

o Progressive Farmers

o Young Vegetable Growers

o Agri-preneurs

o Educated Professionals

o Women

o Vegetable Vendors

o Unorganized Vegetable Vendors

o Young Vegetable Vendors

o Vendors Open to New Ideas and Methods of Selling

o Looking for Stability


TARGET CUSTOMER

Region/

Market

Market Potential

(Annual Volume in MT)

Market Potential

(Billion INR)

Target Market

Potential (Billion INR)

Current

Market Share

Organised

Players

Unorganised

Players

Patna 1,21,000 01.69 1.05 4.27% 4.27% 95.73%

Lucknow 1,66,000 02.90 1.74 0.078% 2.50% 97.50%

Ranchi 38,620 00.62 0.34 0% 0% 100%

Delhi 6,28,900 12.58 8.18 0% 5% 95%

Mumbai 5,43,600 11.95 7.76 0% 5% 95%

Kolkata 2,08,900 03.35 2.18 0% 5% 95%

Hyderabad 2,96,811 05.34 2.93 0% 5% 95%

Bhopal 65,420 01.31 0.72 0% 0% 100%

Indore 72,880 01.45 0.80 0% 0% 100%

Pune 1,16,000 02.86 1.86 0% 2.5% 97.5%

Scope and Size of Market

Factors Affecting F&V Sector o Median Age of India- 25.9 Years

o Form Majority of our Target Customers o Changing Lifestyle and Consumer Preference

o Convenience, Assurance & Information is the Key


CURRENT INDUSTRY LANDSCAPE

o Direct Competition

o Traditional Vegetable Supply Chain and its Middlemen

o Modern Retail Chains like Reliance Fresh, Namdhari Fresh, Food Bazaar, Spencer’s, etc.

o New Entrants in Cash and Carry Segment like Wal-Mart, Metro etc.

o Indirect Competition

o Ready to Cook Food

o Packaged Food

Product Conven

ience

People

Centric

Assurance of Quality/Quantity

Professionalism

Inclusivity Cost

Efficient

+ ve Social

Impact

Lower

Wastage

SamriddhiiTM

Product/Process

General Vegetable

Vending Carts

Unpackaged

Vegetables

Traditional Vegetable

Supply Chain

Modern Outlets/

Super Markets


SCALABILITY OF THE ENTERPRISE

o Phase-I:

o Mobilizing and Organizing the Vegetable Growers and Vendors

o Phase-II:

o Establishment of SamriddhiiTM Supply Chain Components: o SamriddhiiTM Grameen Kendra:

o The Primary Sorting/Grading cum Vegetable Collection center

o Growers themselves become the partners,

o Center for Capacity Building and act as Agri-Input Centers.

o SamriddhiiTM AC Green Carts: o Point of Sales for Vendors

o Become the owners of the Carts

o Lower wastage of Vegetables and risk free income.

o SamriddhiiTM Processing Center: o Sorting/Grading cum Packaging cum Distribution Center

o Storage Space for 2-3 Days

o SamriddhiiTM Packaged Vegetables: o Non-Adulterated, Pure, Fresh and Hygienic in Nature,

o Better Customer Satisfaction and higher turnover for the vendors.

Profit Centers

o Samriddhii AC Green Carts

o Mom and Pop Kirana Stores

o Institutions

No Cost - Zero Revenue Center

o Samriddhii Grameen Kendra


Direct: o Vendors and Growers Network

o More than 3000 Growers & 500 Vendors

o Training Linkage o Tie-up with ATMA, KVK, BAMETI

o Financial Linkage o 250 SHGs Formed and Capacitated in

association with by Madhya Bihar Grameen Bank & Canara Bank for Loans

o Market Linkage o Farmer’s Income Increased by 1.25 to 1.5

times

o Risk Free and Assured Income of Rs. 3000 to Rs. 8000 for Vendors

Indirect: o Availability of option at Farmgate o Financial Inclusion o A life of Social Identity & dignity

for Farmers and Vendors o Awareness Creation among

Farmers for Latest technologies o Better Purchasing Power for

Vendors and Better Bargaining Power for Growers

o Sense of Ownership and Entrepreneurial Zeal

ECONOMIC IMPACT OF ENTERPRISE

Measuring the Impacts- Parameters: o 6 Page Questionnaire for Socio-Economic Condition of Vegetable Growers and Vendors

o Educational Background, Living Condition, Financial Inclusion, Income Level, Landholding, Cropping Pattern, Farm Economics etc.

o After 5 Years they would again be surveyed on the same parameters to see the results


SOCIO ECONOMIC IMPACT OF ENTERPRISE

• No product or equipment sale (cost impact) to work force (farmer/vendor).

• No external imposition to existing socio-economic comfort zone.

• Inclusive & transparent strategic partnerships with producer and vendors.

• Traceability used to enhance pride and associated onus for product.

• Participation in business model encouraged across sexes.

• Organisational benefits to disorganised farming and street vendors.

• Evidencing collaboration across a traditionally feudal farm & rural community.

• Scalability that fetches growth, partnership & hope to agricultural society.

• Mutual reliance and personal achievement through extended reach to markets to much ignored agri-business SME sector.


o Network of Growers and Vendors.

o Product and Process Innovation.

o Flexibility.

o Entrepreneurial Spirit.

_______________________________

No external Change introduced to ecosystem, no disturbing ingress to a habituated working environment….

…Streamlining existing supply chain,

organising & promoting collaboration, supporting through marketing

infrastructure & processes and by bringing pride to people.

o Network of Growers and Vendors

o Sense of Belongingness.

o Sense of Ownership.

o Product and Process Innovation

o Standardization of Products and

Processes according to the local needs.

o Branding and Packaging of Vegetables.

o Innovative AC Green Carts.

o Flexibility

o Flexibility to Adapt according to the local

taste bud.

o Entrepreneurial Spirit

o Every Member is an Entrepreneur.

CRITICAL SUCCESS FACTORS


Risks and Risk Mitigation Strategy

o Risks

o Business Risk

o Wastage

o Weight Loss

o Societal Perception

o Financial Risk

o Issues in Collection

o Other Risks

o Govt. Regulations

o Risk Mitigation Strategy

o Wastage:

o Identified Different Set of Customers for Different Grades of Vegetables

o Primary Processing at Collection Center

o Weight Loss:

o Decreased the lead time

o Societal Perception:

o Identified and recruited Persons with Rural Background

o Recruitment of Ladies for Processing and Selling

o Issues in Collection:

o Developed a System of Advance Deposit for Vegetable Vendors

o Govt. Regulations:

o Developing a PPP Model


AWARDS AND RECOGNITION

o Awarded Ashoka Fellowship

o Social Impact Award by Yourstory.in and SUN

Microsystems

o Winners of Wantrapreneurs 2010

o Listed as Success Story by Govt. of Bihar

o Nominated for ET Now Leap of Faith Awards

o Nominated for MTV Youth Icon Award

o GoI Subsidy announced for the AC Green Carts

o India Today List of Top 20 Future Social

Ventures


MANAGEMENT TEAM PROFILE

o Kaushlendra

o Social Entrepreneur

o An Ashoka Fellow

o PGDM- Agri-Business from IIM, Ahmedabad.

o Expert in Agriculture Sector

o Anuj Kumar

o MBA from NMIMS, Mumbai.

o Has prior experience of working with Kotak Mahindra Bank as a Senior Manager.

o Financial Acumen and Project Formulation and Project Management Technique

o Dhirendra Kumar

o PG (Chemistry) from Magadh University

o Champion in Community Mobilisation

o Very Good Knowledge of Local Market

o Navin Ranbir Gautam

o Business Manager, KNIDS GREEN Pvt. Ltd., Patna

o Expert in Man Management and Independent Decision Making

o Mrityunjay Kumar

o Business Development Manager, Bihar

o Looking after Business Development Aspect in Bihar

o Shashwat Gautam

o Business Development Manager, New Ventures and New Areas.

o Previously worked as Country Manager (Project Implementation) at PRAYAS, New Delhi

o Sumit Kumar Tripathi

o Business Manager, Uttar Pradesh

o Done his post graduation in mass communication and has an experience in working with the creative team of mass media


ORGANIZATION STRUCTURE

Managing Director

Project Management and Finance

Pro

ject

Im

ple

me

nta

tio

n

Fin

ance

s

Operations and HR

Sup

erv

iso

r

Pro

cure

me

nt

De

live

ry

Qu

alit

y

Business Development

Mar

keti

ng

Sale

s

Inte

r-St

ate

Tr

ade

Board of Directors Advisory Board


DIRECTORS AND ADVISORY BOARD

o List of Mentors/Advisors: o Prof. P K Sinha

o Professor of Marketing, IIM- Ahmedabad

o Capt. Pawanexh Kohli o Principal Consultant- Advisor at Cross Tree Techno-visors

o Thought Leader, Specialised Supply Chain

o Specialist Advisor (Infrastructure & Logistics) at IL&FS (CDI)

o Prof. Vaibhav Bhamoria o Professor of CMA Area, IIM Ahmedabad

o Post graduation from IRMA in 2001.

o Dr. Prabal Vikram Singh o FPM from IIM Ahmedabad

o Senior consultant at ACCESS, Hyderabad

o Wide range of experience in development sector

o Dr. Abhishek o FPM (Marketing), IIM Ahmedabad

o Masters Degree from IRMA

o Wide Range of Experience in Agri-Marketing

o List of Directors o Kaushlendra

o Managing Director

o Anuj Kumar o Director

o Dhirendra Kumar o Director


Mr. Kaushlendra- 09473458985 Mr. Anuj Kumar- 09386494453

SOCIO-ECONOMIC ENHANCEMENT ACROSS THE AGRI-BUSINESS VALUE CHAIN

Agriculture, Food and Rural Business Emerging Business · · 2012-05-07Agriculture, Food and Rural Business ... • Mutual reliance and personal achievement through extended reach

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