Airtel iCreate -Business Plan
Executive Summary
Name Title of the idea : IFFCO
Team Name : BizSmiths
Campus : FMS, Delhi
M...
INTRODUCTION
Increasing Cellular
Network penetration
in rural India with
availability of
inexpensive
handsets
Rising
dispo...
Stakeholder Engagement-Model
Telecom
Operator / Airtel
Business Market
Associates
IKSL (JV of Bharti
and IFFCO)
Cooperativ...
IFFCO
1000 Rural
Entrepreneurs
(REs) up from the
current 400 REs
10 Village
representatives
trained by each RE
Each villag...
AgriTrade
Land Sale Land OwnerLand Buyer
Equipments Equipment
renting
agency
Farmers who
requires it in
argency
Agri-
prod...
Sustainability of Engagement Model-IKSL
Airtel
IFFCO
Associates
Rural
Consumers
Business
Market
Free Voice SMS (75 paise p...
Financial Projections
0
50000000
100000000
150000000
200000000
250000000
300000000
2011 2012 2013 2014 2015 2016 2017
Numb...
thank you
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Mobile phone initiative for agriculture sector (Farmers )_Airtel iCreate Business Case_FMS_BizSmiths

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Mobile phone initiative for agriculture sector (Farmers )_Airtel iCreate Business Case_FMS_BizSmiths

  1. 1. Airtel iCreate -Business Plan Executive Summary Name Title of the idea : IFFCO Team Name : BizSmiths Campus : FMS, Delhi Members: Abhijit Kirtunia Ashutosh Sukesh Ch. Gain
  2. 2. INTRODUCTION Increasing Cellular Network penetration in rural India with availability of inexpensive handsets Rising disposable income of rural households Government’s desire for inclusive growth through migration to mobile platforms for financial and social empowerment of rural masses Desire of BFSI and health-care institutions to expand into rural sector The continuing dependability of agricultural economy on vagaries of the Monsoons driving an urge to hedge against crop loss and subsequent crisis Increasing interactions between rural and urban areas fuelling desire to avail primary services to the fullest with minimum travel and time consumed Interest of PE/VC firms in rural ventures Attractiveness of rural sector for CSR initiatives of Corporate firms Growth Drivers To achieve 100% acceptance rate among the customer base of 4 million (presently at 25%) To increase the pace of acquisition of IKSL services to expand the customer base of IKSL beyond 4 million Objectives To provide directed information to the customers through IKSL To ensure relevance, adequacy and accuracy of information provides through IKSL services To deliver information to cell-phones of the end consumers To provide appropriate training to prospective customers on usage of the service To establish and maintain both cross-selling and up- selling of products Challenges
  3. 3. Stakeholder Engagement-Model Telecom Operator / Airtel Business Market Associates IKSL (JV of Bharti and IFFCO) Cooperative Society/IFFCO Rural Consumers Buyer’s Market Supplier’s Market Database Professional Affiliations Banks/Insurance Entrepreneurs Panchayat-Heads M-Agriculture M-Health Animal Husbandry M-Education M-Weather Supply Chain Focussed Selling Loyalty Program Rural Marketing Voice Message SMS/Help Line Discounted Services Experts
  4. 4. IFFCO 1000 Rural Entrepreneurs (REs) up from the current 400 REs 10 Village representatives trained by each RE Each village would comprise about 400 farmers Total 4 million farmers brought into net directly The selected villages are not adjacent; adjacent villages to be left out and to be catered by word-of- mouth Thus in total, on average, 8 million farmers could be brought under the net IFFCO 1000 REs Direct Net 4 Mn farmers Total net 8 Mn farmers Villages directly under RE net Villages indirectly covered Growth Strategy  Insurance coverage and financial support to the farmers in case of natural calamities, pests & disease  To help stabilize farm incomes, particularly in disaster years  Insurance rate and pay-off are based on type of crop, location and record of previous productivity  Premium Rate: 1.5% to 4 % Facilitating Crop Insurance Scheme Commercial/ Horticultureal crop Rabi Crop Kharip Crop
  5. 5. AgriTrade Land Sale Land OwnerLand Buyer Equipments Equipment renting agency Farmers who requires it in argency Agri- products Local producers : Fish, vegetables Local rich people - categorize Large scale products Cohort based local community Big retailers / wholesaler in town Mapping BuyerSupply Mapping of local seller Categorize the buyer based on data Microcredit Bank, MC organization Farmers, small shop owner Supplier SideBuyer Side Promotion Road show - Awareness Weekly Haat, Baazar - Meet Membership Programme Peripheral root of persuasion - Retailers Advertiseme nt on recharge voucher Agricultural trade show Promotional Strategy Pesticide Soil Test Job NewsHealthcare Value Added Services AgriTrade – Buyer Supplier Model
  6. 6. Sustainability of Engagement Model-IKSL Airtel IFFCO Associates Rural Consumers Business Market Free Voice SMS (75 paise pm) Help Line Call -50 paise pm Discounted Service-50 paise pm System Maintenance Networking Expenses Research Institutions Training Costs-Associates Travelling Expenses Promotional Expenses Network/Licensing Costs Advertising Revenue Commission from Associates/Business Sales Revenue from Voice Non Voice Revenue PROFIT=REVENUE-COSTS IKSL (B2B, B2C & VAS ) Upstream Sellers, Producers Wholesalers Downstream Rural Customers Buyers Cooperative Societies Sourcing of Contents and availability of Services Mapping of Buyer and supplier’s preferences Developing distribution framework- IFFCO &Associate Program Marketing and Sales of services and products Revenue collection from various stakeholders Phase Implementation Buyer-Supplier Model Profit Accumulation
  7. 7. Financial Projections 0 50000000 100000000 150000000 200000000 250000000 300000000 2011 2012 2013 2014 2015 2016 2017 Number of Subscribers 0 2000000 4000000 6000000 8000000 10000000 12000000 2010 2012 2014 2016 2018 Rural Customers 0 200 400 600 800 1000 1200 2010 2012 2014 2016 2018 Associates 0 20000000 40000000 60000000 2012 2013 2014 2015 2016 Income from FMCG-Rural Areas 0 10000000 20000000 30000000 40000000 50000000 60000000 2012 2013 2014 2015 2016 Advertising Income 0 500000000 1E+09 1.5E+09 2E+09 2.5E+09 2012 2013 2014 2015 2016 Income from Voice/Nonvoice 0 100000000 200000000 300000000 400000000 500000000 600000000 700000000 800000000 2012 2013 2014 2015 2016 Training and promotional Expenses 0 200000000 400000000 600000000 800000000 1E+09 1.2E+09 1.4E+09 1.6E+09 2011 2012 2013 2014 2015 2016 2017 Net Income from Operations IKSL
  8. 8. thank you

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