2. Current Market Condition – Existing Gaps = Opportunities Total milk production in UP about 53 Mn LPD Current procurement by organized players about 10 Mn LPD (about 19% Vs. about 45% in Gujarat) Yield/cattle is about 1.4 LPD/Bovine Vs. 2.0 LPD/Bovine in Gujarat (almost 30% lower) Milk farmer does not see this as economically beneficial activity Samridhi plans to intervene in the parts of central and western Uttar Pradesh Samridhi plans to reach about 1,00,000 LPD by 31st March’15 2
3. Samridhi – Ready to enter next growth orbit Started Functioning in April’10 Currently functions in 11 villages Currently reaches about 250 members Monthly turnover of about US$12,000 Currently handling about 1000 LPD milk Has developed concept of Milk Cluster Has broken even on month on month basis Supplying milk to “Gopaljee” group Also distributing milk products of “Gopaljee” group in Lucknow 3
5. Milk Production Clusters (MPCs) Samridhi plugs the existing gaps in the dairy supply chain, allowing the poor to produce milk, market finished goods, and independently manage the operations. One MPC has the potential to create 134 jobs, catering to different skills sets. We need an image here Current gaps: Raw materials are prohibitively expensive, well beyond the reach of microcredit Organizing a cooperative group is challenging without mediation; women currently lack the skills required to run a dairy operation Scaling up to serve markets beyond the immediate vicinity difficult because of inadequate longer-term storage solution Lack of market knowledge and relationships means limited opportunities for selling products to a larger market Samridhi solution: Enterprise loans Skills training Technology Marketing Group of 10 -15 women/village entrepreneurs are arranged loan to buy buffaloes/cows Samridhi appoints milk collectors for clean milk capture, testing and recording. Other training includes bookkeeping, de-worming, and operational oversight. Veterinary services also provided with the help of local Vet doctor Samridhi installs Bulk Milk Coolers costing about US$ 4500 which will be serviing 9 villages in the cluster Samridhi procures the milk from the villages and after processing the same sells to large milk group 5
7. Differentiating Factor: Young And Experienced Promoter Group Sanjay Kumar Dhaunta Sanjay Dhaunta has been working with GCMMF / Amul since May 2004, after getting a PG Diploma in Rural Management from IRMA.He is Product Manager for Amul Dairy Products for Eastern and Southern India. Surabhi Rana Surabhi is a 2004 alumna of IRMA and has about seven years’ experience in marketing and branding. She has dabbled with diverse range of FMCG products across categories, Dairy Food, personal care, processed foods & writing instruments. After passing out from IRMA, she joined the marketing team of Amul. Currently she is a Brand Manager with an MNC in the field of Agri Inputs. Lokesh Kumar Singh Lokesh is a Chemical Engineer from HBTI, Kanpur and holds a diploma in rural management from IRMA. He has got over seven years of experience in different fields. He worked in SKS Microfinance Pvt. Ltd. (India’s largest NBFC-MFI) for over 3 years where he headed the expansion between 2004 and 2007 in 12 states including UP, MP, Rajasthan & Bihar. Nagendra Singh Rajawat Nagendra is an alumnus of IRMA and has over 7 years of experience in various reputed companies such as CII (Confederation of Indian Industries), SKS Microfinance and HDFC Bank. At CII, he was associated with a project on Marketing of handicrafts. 7
