Introduction to Agribusiness and Innovation Platform @ ICRISAT


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Introduction to Agribusiness and Innovation Platform @ ICRISAT

  2. 2. ICRISAT Strategy 2020 OUTCOMES
  3. 3. Agribusiness and Innovation Platform (AIP) OUTCOME
  4. 4. AGRIBUSINESS AND INNOVATION PLATFORM (AIP) [ formerly Agri Science Park@ICRISAT ] <ul><li>Objectives </li></ul><ul><li>To serve as a mechanism for technology transfer from ICRISAT to the private/ public sector. </li></ul><ul><li>To translate in-house R&D outputs as well as those developed in partnership with NARS into commercially viable technologies in collaboration with the Private Sector. </li></ul><ul><li>To serve as a tool for economic development for the region. </li></ul>Established in 2003 as a model for fostering agro-business to bring R&D innovations of ICRISAT and its partners to the market for fast & wide-scale impact
  6. 6. Agri-Business Incubation Program (ABI) <ul><li>Service strategy </li></ul><ul><ul><li>Seed Ventures </li></ul></ul><ul><ul><li>Biofuel ventures </li></ul></ul><ul><ul><li>Innovative ventures </li></ul></ul><ul><ul><li>Farm ventures and </li></ul></ul><ul><ul><li>Agri-biotech ventures </li></ul></ul><ul><li>Outreach strategy ( Co-Business Incubation ) </li></ul><ul><li>To partner with Institutes /organizations globally on Business Incubation to promote these ventures and enhance technology commercialization through Co- Business Incubation </li></ul>To facilitate creation of competitive agri- business enterprises through technology development and commercialization
  7. 7. “ Facilitate creation of competitive Agri-business enterprise through technology development and commercialization” Supported by NSTEDB-DST , Govt. of India Started in 2003 Mission AGRI BUSINESS INCUBATION (ABI) PROGRAM AT ICRISAT
  9. 9. Eg: Anil & company, CF Biotech, Siddhivinayaka ABI promotes innovative ventures in agri-business which are proprietary products or novel service that has good market potential FARM VENTURES <ul><li>Services provided: </li></ul><ul><li>Technical consultancy on crop production </li></ul><ul><li>Farm business consultancy on planning and management </li></ul><ul><li>Training and capacity building </li></ul><ul><li>Market assistance through network partners </li></ul><ul><li>These services are provided through Co-business incubation partners, TNAU, Coimbatore and others . </li></ul>SERVICES PROVIDED
  10. 10. Eg: Cooking spray, Steviocides, Sugarcane harvestor, Automatic irrigation system, Agri info mobile services SERVICES PROVIDED ABI promotes innovative ventures in agri-business which are proprietary products or novel service that has good market potential INNOVATIVE VENTURES <ul><li>Technical consultancy through ICRISAT & co-business incubation partners </li></ul><ul><li>Prototype development </li></ul><ul><li>Quality/Test certification of finished products </li></ul><ul><li>Business development through publicity and promotion </li></ul><ul><li>Access to infrastructure and facility on need basis </li></ul><ul><li>Assist in obtaining financial assistance from Banks / VCs </li></ul><ul><li>Access to seed grant funds of TDB- DST & TePP-DSIR, Govt. of India </li></ul>
  11. 11. SEED VENTURES An initiative to develop and promote rural seed business ventures at village level in order to bridge demand and supply gap of open pollinated quality seeds through public, private and people partnership (PPPP) <ul><ul><li>Eg: SBVs in Andhra Pradesh and Tamil nadu </li></ul></ul>
  12. 12. SBI clients in Andhra Pradesh No. of seed entrepreneurs in Andhra Pradesh: 36 SBI clients in Tamil Nadu No. of seed entrepreneurs in Tamil Nadu: 25 ABI Seed Venture Clients
  13. 13. <ul><li>Services provided: </li></ul><ul><li>Business consultancy through Project report and feasibility study </li></ul><ul><li>Turnkey project execution through partners </li></ul><ul><li>Supply-chain management solutions through contract farming and decentralized unit models </li></ul><ul><li>Sweet sorghum parental lines for seed production </li></ul><ul><li>Capacity building of extension officials and farmers </li></ul>Biofuels are the main focus area of ABI-ICRISAT to promote industries in ethanol production from sweet sorghum and other agro produce. Eg:Rusni distilleries, CF Biotech, TCL, Praj Industries & NAIP DCU Bio fuel Ventures
  14. 14. <ul><li>Services provided: </li></ul><ul><li>Technology consultancy </li></ul><ul><li>Facilitate technology transfer </li></ul><ul><li>Capacity building </li></ul><ul><li>Consultation on bio-safety issues </li></ul><ul><li>Biotech lab facility </li></ul><ul><li>Green house facility </li></ul>ABI-ICRISAT promotes seed companies in the emerging area of agri-biotech in developing Transformation protocol for commercial crops, Marker development for traits of interest for seed producers, and Tissue culture of medicinal, horticultural, and tree crops. Eg: Bio seed, Matrix agri sciences Bio tech Ventures
  15. 15. Biz Consultancy BiZ Development Capacity Building & Networking events ABI Services
  16. 16. ISBA, Conference ABI is executive member of Indian STEP and Business Incubation Association (ISBA) ABI had organized the 1 st ISBA Annual Conference on 27 th Feb 2007 at ICRISAT 2 nd Global Forum for Business Incubation, Nov 6-10 th 2006 ABI is a active member of Global Business Incubators Network ABI had organized the 2nd Global Forum for Business Incubation along with World Bank, DST and FICCI in Hyderabad National and International Alliance
  17. 17. TDB –DST Seed Funding Techno-entrepreneur Promotion program (TePP) Outreach Centre – ABI-ICRISAT <ul><li>Funding start-ups in agribusiness through TDB-DST Seed funds of ABI-ICRISAT </li></ul><ul><li>US$2000 – 50,000/Venture as Seed capital </li></ul><ul><li>Invested in 3 ventures for US$45,000 </li></ul><ul><li>Promoting innovators in agribusiness through financial assistance from TePP program of DSIR & incubation support </li></ul><ul><li>US$1500-30,000 for Ideation, Prototypes, Patenting </li></ul><ul><li>Facilitated Funding for five innovators for US$17,000 </li></ul>Linkages with National Developmental Initiatives
  18. 18. Agri-Business Incubation ( ABI) Program- ICRISAT, India <ul><ul><li>Impacts & Achievements of ABI </li></ul></ul>
  19. 19. ABI ICRISAT Impacts Technologies commercialized
  20. 20. <ul><li>ABI-ICRISAT tops Asia Association of Business Incubators award in 2008 from AABI </li></ul><ul><li>ABI-ICRISAT received National award for the Best Incubator 2005 from DST, GOI </li></ul><ul><li>Best Social entrepreneur of the Country to ABI Client Rusni by the Prime Minister of India </li></ul><ul><li>FAPCI Award for Rural development to ABI client AAI </li></ul>Asia Pacific Business Incubator award 2008 National award for business incubation 2005 Awards
  21. 21. Agri-Business Incubation ( ABI) program- ICRISAT, India <ul><ul><li>Financials & Sustainability of ABI </li></ul></ul>
  22. 22. <ul><li>CAPITAL GAINS MODEL </li></ul><ul><li>Big impact highly proprietary technologies </li></ul><ul><li>Types of incubatees </li></ul><ul><ul><li>Mature/ large businesses </li></ul></ul><ul><ul><li>Start-ups with solid entrepreneurs </li></ul></ul><ul><li>Characteristics: </li></ul><ul><ul><li>Needs less ABI mgmt support </li></ul></ul><ul><ul><li>Needs great new tech development support from ICRISAT.. </li></ul></ul><ul><li>Equity payment primarily </li></ul><ul><li>FRANCHISE / REVENUE GEN. MODEL </li></ul><ul><li>Incremental technologies / pure services. </li></ul><ul><li>Type of incubatees </li></ul><ul><ul><li>Numerous small businesses / entrepreneurs </li></ul></ul><ul><li>Characteristics: </li></ul><ul><ul><li>Needs significant ABI mgmt. support </li></ul></ul><ul><ul><li>Does not need great new tech inputs </li></ul></ul><ul><ul><li>Needs investment in technology transfer </li></ul></ul><ul><ul><li>Needs investment in branding / marketing </li></ul></ul><ul><li>Service / royalties / one time fees </li></ul>Financial Impacts <ul><li>Investment in ABI through DST $603K </li></ul><ul><li>Revenue from ABI $1253K </li></ul><ul><li>Revenue to ICRISAT through ABI $759 K </li></ul><ul><li>Return on investment 18% </li></ul><ul><li>R & D Projects benefits to ICRISAT $6.3 million (6 projects) </li></ul><ul><li>Annual budget $223 K </li></ul>Business Models and Financial Impact
  23. 23. REVENUE GENERATION FOR 5 YEARS ABI-ICRISAT is operationally self sustained
  24. 24. <ul><li>Farming community: </li></ul><ul><li>Access to markets for 3 agro products </li></ul><ul><li>Increased the profits of the farmers worth $ 23 ventures worth $ 13.2 million </li></ul><ul><li>Enhanced convenience of farmers through new tools and services like mobile based extension services, handy cotton harvestor etc </li></ul><ul><li>Agribusiness Community </li></ul><ul><li>Incubated 120 agribusiness ventures </li></ul><ul><li>Facilitated funding to 23 venture worth $ 13.2 million </li></ul><ul><li>More than 650 entrepreneurs trained </li></ul><ul><li>Assisted in the commercialization of 34 agro- technologies </li></ul><ul><li>Direct employment generated in the rural community was 832 </li></ul><ul><li>Funding assistance for 40 ventures </li></ul>Impact on farm livelihoods & society
  25. 25. Lessons learnt in India & solutions
  26. 26. Lessons learnt in India & solutions
  27. 28. ABI’s approach <ul><li>I. Co- Business Incubation at National and International level </li></ul><ul><li>II. Institutional partnerships through “Network of Indian Agri- Business Incubators” (NIABI) </li></ul><ul><li>III. Food processing Initiatives </li></ul><ul><ul><li>Cooking Oil- B.R Cooking Spray </li></ul></ul><ul><ul><li>TNAU Client innovative food processed products- Coronet foods </li></ul></ul><ul><ul><li>Nutriplus (AIP) </li></ul></ul>
  29. 30. I. CO- BUSINESS INCUBATION AT ICRISAT <ul><li>“ Co-business incubation is a platform that two or more incubator shares on mutually similar programs based on each others competence for joint execution of incubation activities for achieving enhanced impact and client servicing” </li></ul><ul><li>The outreach strategy of ABI is to partner with Institutes /organizations globally on Co-Business Incubation to promote ventures and enhance technology commercialization </li></ul>
  30. 31. BENEFITS <ul><li>Enhanced support and services to more number of entrepreneurs </li></ul><ul><li>Complimenting technology and business in their respective domains </li></ul><ul><li>Access to physical, technical and other facilities for clients on co-business incubation basis </li></ul><ul><li>Inclusive growth through focused implementation of new venture creation and technology commercialization </li></ul><ul><li>Enhanced benefits to the incubatees through technical and market access </li></ul><ul><li>Promotion of cross border ventures and business development </li></ul><ul><li>Common branding gives better marketability of the programs </li></ul>
  31. 32. SERVICES <ul><li>Planning, development and implementation of business incubator </li></ul><ul><li>Facilitating Coordination and operations </li></ul><ul><li>Capacity building and training on business incubation operations </li></ul><ul><li>Business consultancy support services </li></ul><ul><li>Access to seed capital funding to TDB for the entrepreneurs </li></ul><ul><li>Development and implementation of incubation service modules like Seed Ventures, Agri Biotech Ventures, Innovative Ventures, Farm ventures and Biofuel ventures etc. </li></ul><ul><li>Business Facilitation support and co-branding with ABI-ICRISAT. </li></ul><ul><li>Making the system Successful & self sustainable through monitoring & evaluation. </li></ul>
  32. 33. 1. Tamil Nadu Agricultural University, Coimbatore <ul><li>Incubation programs & Services </li></ul><ul><ul><li>Innovative ventures </li></ul></ul><ul><ul><li>Seed Ventures </li></ul></ul><ul><ul><li>Farm ventures </li></ul></ul><ul><ul><li>Food Processing ventures </li></ul></ul><ul><ul><li>Biofuel ventures </li></ul></ul><ul><li>No. of clients: 15 </li></ul>2. Science & Technology Entrepreneurs Park (STEP), Thapar University, Patiala <ul><li>Incubation programs & Services </li></ul><ul><ul><li>Innovative ventures </li></ul></ul><ul><ul><li>Food Processing ventures </li></ul></ul><ul><ul><li>Biofertilisers & Biopesticides ventures </li></ul></ul><ul><ul><li>Tissue culture ventures </li></ul></ul><ul><li>No. of clients: 10 </li></ul>Co Business Incubation Partners
  33. 34. 3. Agri Business Incubation Initiative at Mozambique <ul><li>How it STARTED? </li></ul>
  34. 35. <ul><li>To carry forward the Indian success story of ABI and provide inclusive growth of agricultural development in Mozambique </li></ul><ul><li>Explore opportunities for setting up Agri Business Incubation in Mozambique through local NARS and ICRISAT centre. </li></ul><ul><li>To consult ICRISAT Seed System Initiatives on USEBA & Seeds Business Model </li></ul><ul><li>First Interest on ABI from IIAM, Management </li></ul><ul><li>Financial Support by ICRISAT, Mozambique </li></ul>WHY MOZAMBIQUE?
  35. 36. At TNAU, Coimbatore At ICRISAT At TNAU, Coimbatore International Incubator Conference by Infodev & Vellore Framers Interaction,TN Key Management Team Training in India May 2007
  36. 37. <ul><li>Other initiatives </li></ul><ul><li>Facilitated Netwoking with African Incubators through African Incubator association Conference in 8-10 July 2007,Maputo </li></ul><ul><li>Facilitated on ToR for recruitment of BI, Manager-IIAM </li></ul><ul><li>Assisted resource mobilization </li></ul><ul><ul><li>CIDA –Mc Gill </li></ul></ul><ul><ul><li>Infodev </li></ul></ul>Objective To develop a Farm Business Incubator at IIAM for technology exchange and local entrepreneurship development Support services Share best practices, transfer technology, support the development of services and products in both regions, and interact with the market possibilities in Mozambique and India. The program did not take off due to change in management of IIAM & initiatives Drs Calisto Bias and William Dar sign the Letter of Intent, in the presence of Carlos Dominguez and Paula Pimentel. IIAM signs up with ICRISAT on ABI, Sept 2007
  37. 38. Rusni Biofuels Seed Works (I) Pvt. Ltd. SEKAB-Eco Energia Soft landing Soft landing Facilitate business & technical partnership Mocfer Facilitate business & technical partnership The BI activities continued directly through ICRISAT-Mozambique office & ABI-ICRISAT ABI Initiatives Mozambique
  38. 39. <ul><li>Services to be offered </li></ul><ul><ul><li>Start-up support </li></ul></ul><ul><ul><ul><li>Identify existing and potential entrepreneurs </li></ul></ul></ul><ul><ul><ul><li>Legal registration of seed companies </li></ul></ul></ul><ul><ul><ul><li>Increase knowledge of the formal seed industry </li></ul></ul></ul><ul><ul><li>Technical support to seed businesses </li></ul></ul><ul><ul><ul><li>Facilitate access to foundation seed for certified seed production </li></ul></ul></ul><ul><ul><ul><li>Technical support in seed production </li></ul></ul></ul><ul><ul><ul><li>Seed quality control service for seed companies </li></ul></ul></ul><ul><ul><ul><li>Development of seed company quality management system </li></ul></ul></ul><ul><ul><ul><li>Seed processing/storage services </li></ul></ul></ul>4. SEDIS
  39. 40. <ul><li>Services to be offered </li></ul><ul><ul><li>Agribusiness management capacity </li></ul></ul><ul><ul><ul><li>Seed business management training </li></ul></ul></ul><ul><ul><ul><li>Financial management advising </li></ul></ul></ul><ul><ul><ul><li>Seed marketing information </li></ul></ul></ul><ul><ul><ul><li>Agrodealer business training </li></ul></ul></ul><ul><ul><li>Smallholder demand for improved inputs </li></ul></ul><ul><ul><ul><li>Assessment of agrodealer capacity to attend/motivate new demand </li></ul></ul></ul><ul><ul><ul><li>Agrodealer training on product usage </li></ul></ul></ul><ul><ul><ul><li>Demonstration plots and field days </li></ul></ul></ul><ul><ul><ul><li>Linking inputs and outputs </li></ul></ul></ul><ul><li>Mozambican Seed Trade Association (APROSEM) </li></ul><ul><li>Legalization in process </li></ul><ul><ul><li>Documents submitted to national authorities </li></ul></ul><ul><li>Meeting agenda: </li></ul><ul><ul><li>Board members election </li></ul></ul><ul><ul><li>New directive members election </li></ul></ul><ul><ul><li>New members admission </li></ul></ul>SEDIS
  40. 41. ICAR-NAIP Business Planning & Development Units (Business Incubators) AREU, Mauritius CIFT, Cochin SDAU, Gujarat CIRCOT, Mumbai UAS, Bangalore IARI, New Delhi Gujarat State Biotech Mission, Gujarat NIRJAFT, Kolkata Xavier University College of Agriculture, Philippines IVRI, Izatnagar “ Facilitating 10 Agri Business Incubation initiatives globally” ABI at Agricultural Research and Extension Unit (AREU), Mauritius 5. Other Incubation Partners
  41. 42. <ul><ul><li>NIABI is “Network of Indian Agri business Incubators”. NAIP has entrusted the ABI-ICRISAT with the responsibility to handhold and mentor these 10 BPDs through a project funded under component I. </li></ul></ul>II. NIABI
  42. 43. <ul><li>INFRASTUCTURE </li></ul><ul><li>Creating a databank of indigenous agro-technologies for commercialization from ICAR, SAUs, CSIR etc. </li></ul><ul><li>Identifying international agro technologies suitable for the Indian context. </li></ul><ul><li>Creating a networking platform for agri-businessmen and mentors. </li></ul><ul><li>Creating a platform for facilitating funding to start-up agri-business </li></ul>HOW WE DO?
  43. 44. <ul><li>PROCESS </li></ul><ul><li>Capacity Building / training programme of BI managers on new initiatives and approaches in agri-business incubation. </li></ul><ul><li>Mentoring and guidance of BIs through direct visits and annual meetings. </li></ul><ul><li>Promotion of agri-business incubation / nationally through co-business incubation. </li></ul>HOW WE DO?
  44. 45. <ul><li>OUTCOME </li></ul><ul><li>Facilitate business of agri start-up and incubatees by participation in local and international exhibitions. </li></ul><ul><li>Seminar on Best practices to start-up agri-business through video conference / web casting. </li></ul><ul><li>Facilitating soft-landing support. </li></ul><ul><li>Network of Indian Agri-Business Incubators(NIABI). </li></ul><ul><li>Annual Incubator / Incubatee awards. </li></ul>HOW WE DO?
  45. 46. PROMOTION OF AGRI-BUSINESS INCUBATION / NATIONALLY THROUGH CO-BUSINESS INCUBATION <ul><li>Co-marketing under common branding; NIABI (Network of Indian Agri-Business Incubators) –Communication materials, kits, display, exhibition </li></ul><ul><ul><li>Preparation of NIABI brochure, NIABi newsletter & NIABI Video </li></ul></ul><ul><ul><li>Banners and Panels for participation in events and exhibitions </li></ul></ul><ul><ul><li>Participation in events </li></ul></ul>Brochure Website Video Newsletter
  46. 47. III. Food Processing Initiatives <ul><li>NutriPlus Knowledge Center in Agri-Science Park @ ICRISAT is a platform for R&D and innovations in food processing with focus on cereals, legumes, fruits / vegetables, medicinal and aromatic plants </li></ul><ul><li>The verticals for applied research are nutraceuticals, fortified foods, flavors and fragrances, phytoceuticals, functional foods, functional beverages, food additives and color bio-actives and enzymes, post-harvest management and bio-products </li></ul><ul><li>NutriPlus is a US $ 6 million project </li></ul>
  47. 48. Food processing Initiatives <ul><li>CO- BI partner TNAU, Coimbatore Incubatee </li></ul>Coronet Foods
  48. 49. Food processing Initiatives <ul><li>Cooking Oil Spray product by ABI- ICRISAT Incubatee- Mr. Rami Reddy </li></ul>
  49. 50. Way Forward Framework of Global Agribusiness Incubation in the 21st century
  50. 51. CGIAR & Infodev -A harbinger for Global ABI Global Agri Business Incubator Initiative Agri Business development in 21 st century
  51. 52. No. of Agri Business Incubators in the World: 25 Only 0.5% of the total business incubators in the World Global Share of ABI in the BIs
  52. 53. Current Agri Business Incubators in the World
  53. 54. <ul><li>Cost of establishing 200 CoBIs under 5 COEs = $120 million </li></ul><ul><li>Total operational cost = $100 million </li></ul><ul><li>Seed fund from CGIAR to all the </li></ul><ul><li>CoBIs= $50 million </li></ul><ul><li>Total cost of the global ABI system = $270 million </li></ul><ul><li>Basis: </li></ul><ul><li>Cost of establishing an ABI = $0.6 million </li></ul><ul><li>Annual cost of Operations per ABI =$0.1 million </li></ul><ul><li>No. of clients per ABI =14 (source: NBIA) </li></ul><ul><li>Returns per ABI per year =$110K </li></ul><ul><li>**Returns will be based on the utilization and performance of ventures </li></ul><ul><li>Technologies to be commercialized per incubator: 10 </li></ul><ul><li>Investment mobilized per ventures =$2.9 million (source: NBIA) </li></ul>Investment <ul><li>Total returns expected through incubators= $110 million </li></ul><ul><li>Returns through equities and royalties on seed fund =$100** </li></ul>Returns Impacts <ul><li>No. of farmers could be benefited=28 million </li></ul><ul><li>No. of agri business ventures could be incubated= 2800 </li></ul><ul><li>No. of technologies can be commercialized= 200 </li></ul><ul><li>Expected Investment in ventures $580 million </li></ul>I GABI by promoting 200 ABI i.e, 5% of the ABI among BIs globally, it can anchor 2800 agri business ventures and benefit 2.8million farmers with an investment of $270 million Agri Business Incubation- Investment, Returns & Impact
  54. 55. THANK YOU The Opportunity is very HUGE Let us Partner for Co-Prosperity The Environment is Fragile Let us make a Difference