CONSERVE 2 PRESERVE
TEAM DIVERGENT
CASE STUDY SOLUTION
PRESENTATION
Jain Irrigation’s JUGGERNAUT
TEAM DIVERGENT
3 OSTERWALDER’S BUSINESS MODEL CANVAS FOR
JAIN IRRIGATION
4-5 CHALLENGES AND CORRESPONDING SOLUTIONS
6-7 CASE RESOLUTION: THE ECONOMIC COMPONENT
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7-8 CASE RESOLUTION: THE SOCIAL COMPONENT
BUSINESS MODEL CANVAS
CHALLENGES FACED
High Costs Low Profits Unsold Inventory
Jain Irrigations have Profits have gone down Since the introduction
been incurring huge due to the increase in of the new NBFC
costs on various costs and reduction in system the inventory
social endeavours revenue earned since has been piling up
like building dams the introduction of and the sales have
and funding schools. NBFC system. gone down.
These costs have Insufficient profits has Decrease in sales has
contributed into led to mounting of resulted into the
increasing of debts. debts. increase in debts.
Solutions
Outsourcing the working of gram sevaks instead of the
OUTSOURCING logistics costs and time taken by agronomist in teaching
them.
ONLINE Instead of paying the school for imparting education to
EDUCATION farmers they should teach through online mode.
For building dams they should collaborate with other
COLLABORATION companies who are in the business of constructing dams.
MARKETING Use of more effective marketing techniques for the sale
TECHNIQUES of goods.
The Economic Trifecta
The economic downfall of Jain Irrigation can be attributed to the following causes:
- Cascading interest payments over the years.
- Loss of brand image after the setup of NBFC scheme.
- Diverging from a “product-first” enterprise and bleeding too much cash in 40
social endeavors. BILLION
Pending debts
CASH FLOWS
Identifying the social projects which do not have a
substantial impact, and outsourcing them to local NGOs or
SHGs. Drawing money out and routing it to marketing, for
increasing the revenue share in food processing industry.
CUSTOMER RETENTION: PLAY ON PRICES
Smaller land holdings warrant lower incomes of farmers.
In order to bring them into the MIS bracket, the prices need
to be cut down upon.
This can be done in the following manner: 1.4% and 860
- Conducting market surveys to gain the pulse of 3.5% CRORE
the market and the purchasing power of farmers. Loss in Sales for
Also, to get insights into the reasons the farmers of Quantum of
MIS and food Loss in 2014.
a specific area are not going for MIS. processing.
SUPPLY CHAIN
Just-in-time management system can be employed in the
case of inventory to ensure it doesn’t block the assets of the
company. Cash and carry system can be carried forward.
Branching over Cashing in on
borders
Detailed economic roadmap
strengths
● A mere glance on the balance
sheet reveals that the ● Jain Irrigation must reach out to their
company has suffered a net target market; i.e. the farmers and
gain in foreign transactions. plug the damage from thereon.
● This can be the company’s ● Above 80% of the business flows
dark horse as India’s food from MIS and food processing, hence
processing industry is among care must be accorded to small and
the lowest ranks in the world. marginal farmers in rural areas and
● The company must build a customers in the urban areas.
concrete brand image and Instead of providing vaguely related social
export processed food to the services like education, Jain Irrigation should
world, instead of looking stride to help farmers directly in the burning
inwards. issues:
● This can be facilitated with ● Managing stubble wastes
the existing widespread Integrating solar and other forms of renewable
network and plants. energy in farming.
Moreover, the political Landscape may -Providing cold storage facilities and similar
also change in this space soon. guarantees to the peasants.
Jain Irrigation, with its promise of -Cementing the R&D DEPARTMENT to wriggle
quality and standards, can become a out new innovations which can help reduce
force to reckon in international brands cost of MIS.
dealing in processed food. -Procuring wasted fruits and vegetables and
processing them into meaningful products, if
feasible.
7
The Social Component: Building a one stop application
Farmers feed the continent, but they Modern equipment and tools based on AI enable data
often lack the finance to invest in vital gathering and assist in precision farming and informed
seeds and fertilizer to make their
decision-making. Drones, remote sensors, and
fragile agricultural holdings
sustainable.=- satellites gather 24/7 data on weather patterns in and
around the fields, providing farmers with vital
For this,apps like MyAgro works in information on temperature, rainfall, soil, humidity, etc.
countries like West Africa . It enables
smallholder farmers to gain financial
independence and lift themselves out
of poverty by investing directly in Livestock managers are wiring up their barn feedlots
their farms.Nothing of this sort has and pastures with cameras that send images back to
ever been to India due to which the central location like an office or home computer.
farmers face the problem.
They can keep a closer eye on the animals when
An app which can deal with small
amounts of money on a mobile they are away. or home for the night.
technology platform that provides a
comprehensive set of services: access
to fertilizer, seed etc.
However, AI finds slow acceptance in a country like India where marginal farming, fragmented landholdings,
and other reasons act as impediments. But there is no doubt that technologies based on AI can bring
precision to large-scale farming and lead to an exponential rise in productivity.
With farmers getting insightful details from mobile apps, they are smoothly transitioning from handling
fields to creating farm maps and facilitating the use of drones. The software behind the apps put them in the
driver's' seat when managing everything from strategy formulation to tracking progress.
60%
12/18/2019 9
Thanks!
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SHITIJ SAHARSH
GUPTA DAMANI GARG JHUNJHUNWALA
“A satisfied customer is the best business strategy of all.”
