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Funding Requirements V1 Pdf
 

Funding Requirements V1 Pdf

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eFarm's financial plan and investment requirments (exec summary). Version 1 . Nov 2009 . PDF format

eFarm's financial plan and investment requirments (exec summary). Version 1 . Nov 2009 . PDF format

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    Funding Requirements V1 Pdf Funding Requirements V1 Pdf Presentation Transcript

    • eFarm : A Farmer To Consumer Agri Supply Chain Network Investor Presentation : Executive Summary Note: (Please refer Overview presentation & Financials spreadsheets for details)
    • Farmers / Suppliers Buyers Collaborators Star Hotels / Restaurants : Institutions Over 1500 farmers and associations across Oriental Cuisines pvt. Ltd (Hot breads chain) MOP Vaishnava Women’s college – Dept. of Food Tamilnadu , Andhra , Karnataka & Kerala VGP Golden Beach resorts Science & technology currently in the network : Savera Hotel Leading hotel & catering chain (in pipeline) Tamilnadu Agri University – Agri Business Incubation High end restaurant in Besant nagar (pipeline) ICRISAT, Hyderabad Conventional farmers/precision farmers PSG College of Tech – Business school, Chennai Retailers : Green earth, Nilgiris Veggibazaar.com ICFAI Business school, School Precision Farmers association, TN Largest F&V retail chain in TN (in pipeline) Hospiexchange Satguna Agro , Thanjavur J’s Organo store, neelangarai Raj varadarajan farms , padalam Five Star Classic, Thiruvanmiyur Microfinance and rural banking Banana farmers association, TN Universal, Tambaram (in pipeline) Indian Bank – Microsate II Fast food : Dept. of Horticulture & Agri IFMR Pizzaguy marketing, TN government OVG Equitas GPS Agro , Cochin Sandy’s , Karma Café Institutions: NGOs Organic farmers Voluntary Health Services Hospital, taramani RASA – School for Special Children Earth trust , Ooty Kalyani hospital, Mylapore Nandini – Voice for Deprived Venkateshwara hospital (pipeline) Banyan Ecoville ISKCON Chennai Nivedita Rajagopal Farms, Nanmangalam Small – mid range hotels & caterers SIMPLE – Organic farmers NDS – Networking & Dev. Centre for NGOs Bharani hotel, Thiruvanmiyur Exnora (in pipeline) association , Nellore Picnic plaza, M fiylapore Rayar mess , Mylapore Samanvaya Organic Farmers Group of India (AOFG) Annai Mess SS Annamalai staff canteen Consultants : Jayam caterers , Velachery Dr. Vivek Pathiavadi ,Rural Supply Chain Meenakshi caterers , Mylapore Management Leading industrial caterers (in pipeline) Dr. Padmanabhan , Retired Toxicologist , Germany LocalTraders and street vendors Dr. Easwar, Management Faculty, IIT Delhi , Rtd Hamilton bridge area vegetable & fruit vendors Wing Cmdr Air force One association Dr. Shridhar, Entymology, TNAU Status as of Nov 1 , 2009 Thiruvanmiyur market traders association Food Processing CuttiesByKuttys Rural entrepreneurs Exporters (pipeline) Travel another India , Gouthami Star Agro (Nellore) - Banana
    • 32/kg 42/kg Eg: Ooty Carrots (As of 29th 28/kg June 2009) 24/kg 22/kg 20/kg End customer 5/kg 12/kg price Farmer’s Regional Metro Terminal Neighbourhood Kirana Branded Premium market mandi Market market stores, Retailers Grade (In Ooty/ (Mettupala (Chennai) (Thiruvanmiyur Push (Export) Kothagiri) yam) Chennai) carts 500 % Price hike Source : Ooty market traders, Chennai traders, indg.in  Over 500% Price hike on average to customer , but no value addition  Changes hands several times: 40-50% is wasted – which adds to the costs  Prices set at each intermediate point arbitrarily by brokers/agents without any planned demand/supply data  Farmer typically operates at 25% loss , End retailer less than 5% net margin
    • 30/kg Export prices become Eg: Ooty Carrots (As of 29th 19.75/kg viable and June 2009) competitive 13.5/kg End End customer 6.5/kg s see 30% Farmers are Wholesale customer drop in paid 20% buyers see prices higher than a 33% price current drop prices to ensure profitability Farmer eFarm wholesale eFarm retail (at Mylapore (at eFarm powered outlets Distribution centre) and customer deliveries) Reduced from 500% to 200%  Assumptions : Transport Rs 6000 for 4T truck , Operational expense @30%  Wastage reduced from 40% to 5% owing to prior demand data , and less intermediaries  Customers see a 30% drop when compared to prevailing market  End retailers get better margins , promoting more sales & entrepreneurship in F&V  eFarm’s net margin : 30%
    •  Income from sale of produce (~50% of turnover)  Income from value added processed items , waste conversion  User Registration fees and database listing in portal  Franchisee fees for retailers (Based on typical daily order volume)  Systems integration /consulting  Advertisements in retail vans/push carts/web portal Income Distribution 10% Website 1% 16% registrations Income from produce sale 19% Advertisements 44% Franchisee fees 7% 3% Consulting
    • Year1 Year2 Year3 Year4 Year5 • Establish • Biggest Local player • Expand operations • Biggest Regional • Biggest National (Chennai) in agri regionwide (S.India) Player (S.india) level player in agri framework for sourcing & supply sourcing • Establish export • #1 expert in agri core operations • Kickoff agri oriented units consulting, market • #1 supplier to • Establish business consulting • Launch online agri research export oriented hub/spoke division produce auctions • #1 supplier to units operations within • Establish Agri and Third party domestic agri • 30 Plus : 30Cr profit Tamilnadu with processing and logistics services processors , agri by Year 5 , ROI of Chennai as waste conversion • Profit in 3 : waste/byproduct 30% pilots Become fully industries destination • 15 by 2 : 15 crores profitable by Year 3 • Kickoff national • Launch B2B turnover by year 2 level pilots of model portal • 3 in 1 : 3 crores turnover by year 1
    •  Year 1 : Rs 3.1 crores (~ 690K USD)  Year 2 : Rs 1.3 crores ( ~ 290 K USD)  Year 3 : None ( Will be generating profit)  Utilisation of funds : Short term Working capital requirement : 25-30 lakhs Rupees
    • Please see attached Excel spreadsheet for balance sheet, sales projections , funding summary , financial ratios etc., Sales , Profit Projections 3500 3000 2500 2000 1500 Sales 1000 Net profit before tax 500 0 -500 Year 1 Year 2 Year 3 ** At end of 3 years Figures in Rupees Lakhs
    • eFarm Please see spreadsheet for details Year End Summary Extended Projections till 6 years Year One Year Two Year Three Year Four Year Five Year Six Total Income 34,670,240 144,619,610 341,211,415 474,684,655 654,096,624 898,045,331 Total Cost of Sales 26,520,365 94,373,762 191,751,691 259,230,666 284,621,978 312,525,834 Gross Margin 8,149,875 50,245,848 149,459,724 215,453,988 369,474,646 585,519,498 Total Salary and Wages 9,213,000 18,426,000 36,852,000 63,417,200 69,758,920 76,734,812 Total Fixed Business Expenses 29,654,050 44,481,075 55,601,344 78,235,758 86,059,334 94,665,267 Total Other Expenses 1,259,594 1,254,136 - - - - Net Income (Before Tax) (31,976,769) (13,915,363) 57,006,380 73,801,031 213,656,392 414,119,419
    • Please see spreadsheet for details
    •  The truck , being the main mode of deliveries , represents the fundamental unit of volume , utilization & growth indicator  Based on trials and metropolitan traffic regulations , a 4 tonne truck has been identified as a standard, viable, long haul unit which can freely come within city at all times.  Within city, local distribution can be handled by range of small vehicles – from tempos to 2 tonne vehicles which can navigate small spaces  All figures are tied to “How many truckloads of produce” is being transacted
    • 2009 2010 2011 Task Name ID Start Finish Duration Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Build supply chain (physical) 1 8/17/2009 3/26/2010 32w network Setup/Integrate collection centres 2 8/17/2009 12/4/2009 16w Setup/Integrate distribution 3 8/17/2009 12/4/2009 16w centres Setup/Integrate storage areas 4 12/7/2009 3/26/2010 16w Setup/Integrate Transport logistics 5 8/17/2009 1/29/2010 24w Setup Training centres/Rural 6 12/7/2009 3/26/2010 16w outreach points Build IT infrastructure 7 8/17/2009 12/31/2010 72w Build Supply chain mngt backbone 8 8/17/2009 12/4/2009 16w Build B2B customer facing agri 9 8/17/2009 1/29/2010 24w trading portal Portal kickoff 10 2/1/2010 2/1/2010 0w Build SMS/Mobile/Voice interfaces 11 12/7/2009 1/29/2010 8w Setup call centre/BPO operations 12 12/7/2009 1/15/2010 6w Enhancements/Thirdparty 13 2/1/2010 12/31/2010 48w interfaces Operations(Ongoing) 14 8/17/2009 1/13/2012 126w Fund raising – First 15 8/17/2009 11/6/2009 12w round(ongoing) Expand pilot to add new farmers & 16 11/9/2009 2/26/2010 16w bulk customers Setup alliances and tie-ups 17 11/9/2009 2/26/2010 16w Planning/Monitoring /Process 18 8/17/2009 1/13/2012 126w improvement of daily ops Marketing and sales 19 3/1/2010 5/20/2011 64w Expand sourcing network of 20 3/1/2010 10/8/2010 32w farmers through alliances Expand customer segments 21 3/1/2010 10/8/2010 32w through franchising/ distributors Expand logistics network through 22 3/1/2010 10/8/2010 32w tie ups Participation in trade shows, agri 23 10/11/2010 5/20/2011 32w events Increase Supply chain Value 24 3/29/2010 3/29/2010 .2w addition Setup food processing/value 25 3/30/2010 9/13/2010 24w additionb trial plant Setup waste conversion trial plant 26 3/30/2010 9/13/2010 24w Agri Business Consulting 27 9/14/2010 1/2/2012 68w Data analysis/research insights 28 9/14/2010 12/6/2010 12w Customer driven production 29 12/7/2010 2/28/2011 12w planning Agri entrepreneur training/ 30 3/1/2011 1/2/2012 44w consulting Initiate Long term expansion 31 8/17/2009 8/17/2009 .2w Second round fund raising 32 6/21/2011 10/10/2011 16w Regional phased expansion-pilots 33 10/11/2011 1/30/2012 16w National phased expansion-pilots 34 1/31/2012 5/21/2012 16w
    •  Structure : Registered as ‘MVS EFARM PVT LTD’  Shareholders : Venkata Subramanian and Srivalli Krishnan are the founders and MDs of the firm . Sole owners of all shares of the company.  Investors : Existing external investors are primarily friends and family on ‘soft loan’ terms with no equity stake  Debts : There are no external debt or equity investments (as of Nov 1’09)  Staff strength : There are 8 fulltime employees and 4 part time employees (as of Nov 1 ‘ 09)  Turnover : Current turnover PER MONTH (as of Nov’09)- 4 lakhs  Current growth margin M-O-M (as of Nov ‘09) – 30%  Current margins : Gross :35%0 , Net : 20%