Business Plan Presentation V4
Business Plan Presentation V4
Business Plan Presentation V4
BUSINESS
PLAN
unprofitable
• Lack of demand/supply data
1 • No reliable sales, distribution, marketing
channels
• Poor logistics and storage 5
• A Middlemen’ dominated market
•No IT/ERP usage – decisions are adhoc and
Regional mandi to Wholesalers to Retailers
arbitrary 4 Terminal markets near
A local mandi large cities
auctioning 2
Contrac
t Export
farming Indian market
Agriculture
Cold
chai Moder
n Micro
n retail
finance
&
& Grants
Market and Industry
Environment
Market Scenario
Burning Crisis Or Booming
Dat Opportunity ? Organised
Faruits & Vegetables (Total market)668800 Cr Organised + retailers
are non-players
Unorganised Value when we see
Notes overall volume
Crisis
The ‘REAL’ reasons
Key Issues and pain
Areas
Marketing : The missing
link ?
Storage
Warehouses
Bulk buyers
Exporters
Farmers
Cooperatives
Collection centers
Kiranas
Self Help
Groups
Hawkers
Q u a l i ty R o u ti n g
In s p e c ti o n / G r a d i n g
Long haul
T r a n s p o r ta ti o n
Farmers
Urban area
Local D i s tr i b u ti o n c e n tr e
D i s tr i b u ti o n
C o m p o s t /M a n u r e Food Processing
fr o m w a s te u n i ts
Bulk buyers
( H o te l s / C a te r e r s /
E x p o r ts
R e ta i l e r s )
eF a r m C o m m o n Services
Planning & C a l l c e n tr e / T raining &
Research Technology
C o o r d i n a ti o n C o m m u n i c a ti o n Support
Value
Proposition
Key Products / Services
Vegetables
Fruits
Farmer network
Market Linkage
Programs
Key Clients
‘Hotbreads’ Mahadevan’s Chain of Fine dining restaurants Foodcourt at
in Chennai (OCPL) ExpressAvenue
Mall
(asias’s
largest)
13.5/kg End
customer
6.5/kg End s see 30%
Farmers are Wholesale custome drop in
paid 20% buyers see prices
higher than a r price
current 33%
prices to dro
ensure p
profitability
Farmer eFarm wholesale eFarm retail
(at Mylapore (at eFarm powered
Distribution centre) outlets and customer
deliveries)
Overview
Behind the scenes
Open source
Tools &
technologies
AgriXML
As a dataXchange
format
Business
Technology Model
Jan-08 Sep-09
COO CEO
Venkat Valli
Advisors
Finance &
Distribution
Accounting
Current Team Size
Sales &
Board Members
15
Technology
Marketing •Sourcing – 2
Investors •Delivery – 2
Sourcing Social Initiatives •Processing – 3
Alliance Partners
•Admin – 1
Logistics Recruitment
•Business Dev – 1
•Transport – 2
•Interns – 4
Consulting
Over 60% of staff
are
CORE TEAM EXTENDED TEAM differently abled
Key benefit to
Training farmers
on how to arrive at
prices based on
market data
Key benefit to
farmers
Small
tempos for
local
deliveries –
powered by
eFarm
Only a eFar
phone call m mobile
away … a store at an
vegetable old age
vendor home
enquiring
prices
Spreading the message
Workshops, Training, Agri business entrepreneurship development
eFarm office and
Innovations in Tie ups with Agri
godown at
agriculture retailing research and
business Mylapore ,
Agri
Talk at MOP incubation centres Chennai
Vaishnava (ICRISAT)
womens’s college,
Chennai
(centre)
Talks in Setting shop -
management Our home became
schools and the godown &
institutions store.
(IFMR ,
Field trips to villages and address Conferences IBS)
Farmers gathering and trade shows
Upgraded vending
carts , standardised
weights and
measures
Market landscape
Competitive Scenario
Food distribution companies (Sodexho )
Cater to high end segments , costs prohibitive
IT-Driven Procurement Platforms (Spot market exchanges (SAFAL
SNX))
Failed due to too much technology , low adoption by farmers
Opportunities for Contract Farming (Naamdhari , maxworth green orchards)
CO- A failure in India – farmers don’t understand legalities, production
OPETITION carries risks and saps management attention,land area fragmented
Where we may
overlap them
Social entrepreneurs ( earthy goods , aakruthi )
in some areas,
Similar approach , But all in early stage
but Organised Retailers ( Indian chains, MNC chains, Big store
complement formats)
them in others
Branded chains – stiff competition for small domestic segment , high
Collaborate costs, use local mandi as primary supply source, deal only top grade
to Govt. Regulated Markets/Mandis ( Vashi, Azadpur, Koyambedu)
Compete High volumes, but unorganised – middlemen dominated
Commission agents / Wholesalers / Vendors (Several local players)
Market landscape
Market Size
Quick calculation : (Taking a single Tier I metro city in India as
sample)
Typical Metro (Tier I) population : 8 million
Avg. consumption : 500 gms of fruits and vegetables per
person
Volume : 4 million kgs = 4000 tonnes
Value : 6 crores per day (at Rs 15/kg average blended price)
Entry barriers
People Barriers (When working with farmers/unorganised sector)
Literacy barrier
Cultural (language , caste etc) barriers
Building Trust takes time
Information Barrier
No reliable/accurate supply or demand of industry
Technology usage/penetration very low (except mobile
phones)
Financial Barrier
Years of neglect of industry , investments have dropped
Financials of farmers – such as cost of production are
unknown , making pricing negotiations a challenge
Operational barrier
Crisis management on daily basis
Myths ,emotions, hype around farmer issues and crisis status
,blurring reality
15 crores target
Financials Figures in INR
in 3 years
Figures in
‘000 INR
Assumptions
•Chennai/TN operations already stable hence
fast growth viable in home ground
•As technology+processes stabilise,
margins would improve with lower
wastage
•Gradual shift to high margin , niche
segments
•Pilots in other metros to start in mid ‘11
and reach full scale by end of ‘12
etc.)
Reverse ( Agro compost, farm supplies
Collection
centre
Village (local) Establish distribution centres in
metro neighbourhood
Bulk distribution of goods
Establish multiple local
marketing channels
Distribution - Supply to local markets,
centre
(Neighbourhood)
shops, catering,processing
Large town
industry
(Regional)
Establish technology backbone
Manage supply chain , MIS,
items) Customer Portal
Establish marketing channels in
a large metros (e.g Chennai,
Bangalore , Hyderabad, Mumbai etc)
Outdoor mall
for processed foods & Niche
Retail channels / outlets
Large (processed foods) products
Metro
- Supply to Large retail
chains , boutique outlets
Investment Snapshot
•Company structure :MVS eFarm Pvt How will 1 crore be
utilised ?
Ltd
Funding Requirement
Year 1 : Rs 1 Crore (~ 225K USD)
Year 2 : Rs 3 Crore (~ 700 K USD)
Valli
srivalli@matchboxsolutions.in
11 loganathan colony
Mylapore, Chennai 600004
Ph : 044-43577236