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eFarm
Enabling FArmers to Reach Markets
An Agri Supply Chain Platform Linking farmers and consumers



Why is there
an Agri Crisis
in India ?
Key problems and simple solutions



  Venkata Subramanian , Founder & COO
  Srivalli Krishnan , Co-Founder & CEO
Only a crystal clear question yields a
                       transparent answer
                                 – Zen saying




PROBLEM STATEMENT
Pain areas | The Agri Supply Chain
 Current State : Too Many Steps , Too Little Value Addition

     Harvesting of           • Unorganized , unregulated ,                                         Terminal markets to
     Vegetables
                             unprofessional & unprofitable                                      neighborhood wholesalers

                             •A Middlemen’ dominated market
                     1       •Adhoc /Arbitrary Decisions on quality &
                             price
                                                                                                                              5


                                                                Regional mandi to                  Wholesalers to Retailers
                                                          4   Terminal markets near
   A local mandi                                                   large cities
   auctioning            2

                               Local to Regional mandis
                                      for Auction
                                                                                                                                  6
Loss in transit
      40%
                                                                Price hike            Retailers to Dining Table


                               3                                End to end
                                                                 > 400%
                                                                                                                  7
Pain areas | The Farmer’s ‘REAL’ crisis

                             Reality Check
                             •Farmers cannot do “everything”.
                             They need professional help and
                             organizational support

                             •Farming needs to become self
                             sustaining and HENCE a business
                             activity
                             •High uncertainty and risks = Very
                             low investor interest
                             •Years of neglect & low esteem =
                             educated youth avoid an agri
                             career

                             Need role models and pioneers to
                             build the road to recovery
Lack of Data| No visibility to supply or demand



                             Reality Check
                             • No accurate , dynamic data
                             on supply
                             • No market research on
                             customer demand
                             • No data = Wild guesses ?
Pain Areas | Customer Spectrum
    Huge domestic demand, Escalating prices & Unmet needs
                                        Organised retailers are crowded in this space
                                                     Competition high




Low Income          Middle              High                  Hotels &          Food &             Export
Group               Income              Income                caterers          Drink              • ~1% of
• > 40% in          Group               Group                 • ~25% of         processors           volume
  volume            • ~ 20% in          • ~5% in volume         volume          • ~5% of           • Best quality /
• Buy from            volume                                  • Buy from          volume             specific
                                        • Buy from                                                   products only
  neighborhood      • Buy from            retail chains         wholesale       • Product
  markets             street vendors    • Quality &             mandi             specific buyer
  (evening)         • Price + Quality     variety                               • Large volume
• Pay more for        conscious           conscious                               + fixed price
  less quality                                                                    range

                 Efarm targets entire B2B segment and currently untapped areas
Pain areas | Marketing -The missing link ?




                                                                     Reality Check

                                The missing FIFTH ‘P’ of marketing   No proper
                                in agri context - PERISHABILITY !!
                                                                     customer
                          Other industries have differentiated
                                                                     demand data
                          production from marketing/sales
                          Agriculture – Farmer handles both roles    India’s agribiz is
                                                                     ‘supply driven’
Brands have value !! Indian products                                 rather than
though have wider varity and better
taste have not established a stable
                                                                     ‘market driven’
brand
Pain Areas |
    So many solutions , but why still a crisis ?

                      R&D
      ICT                                          Reality
   solutions                                       Check
                                     Increase
                                       yield
                                                   Lots of great
Contract
farming
                                                   ideas and
                                         Export
                                         market    effort

                                                   But

                                                   Exist in silos
   Cold
   chain        Modern
                                                   Blind men
                               Micro               and the
                retail &
                             finance &
                logistics
                               Grants              elephant ?
Market Scenario|
      Burning Crisis or Booming Oppurtunity ?
India’s Total production of fruits & vegetables =
      •100 Million Tonnes = Rs 650,000 Crores (value) [ 1 tonne = 1000 kgs]
Wastage in transit/handling/distribution = 40%
                                                                                                            Key focus
Current market segmentation of organised players:                                                           areas for
   •Organised retail/Branded retailers share in F&V : 1.5%                                                  govt. for
                                                                                                             urgent
   •Food processing sector : 1% ( key pain : erratic supply)
                                                                                                           improvem
   •Export sector : 1% (key pain : poor grading, quality checks)                                               ent
Typical DAILY requirement of fruits & vegetables of Tier 1 city/metro :
      •4000 tonnes = Rs 6 crores value
Source : IMAGES F&R Research Study , Govt of India , Dept. of Agriculture, Min. of Food processing


                     Even a 1%               improvement                                 in this segment

                         would create/generate/save Rs 650 Crores !!
"We can't solve problems by using the same kind of
        thinking we used when we created them."

                                   Albert Einstein



THE SOLUTION
Key Innovations
  1) Weighing machine = standardise agri business transactions !


        Bundles, baskets , bags         Kilograms , Counts   
2) Simple grading = right quality to right customer!!

     Mixed grades      S / M / L (Or) excellent / OK /bad 




                             3) Simple technology = widest usage !!!

                                      PCs, Websites      Mobile phones , Voice, SMS   
Value proposition |
    Unlock revenue potential across the chain
                           Cleaning / Packing


      Quality
Inspection/ Grading
                                                                      Routing
                                                                                                          Every stakeholder is alternately a
                                                                                       Long haul          buyer or seller of agro goods, linked
                                                                                     Transportation
                                                                                                          together by a common system.
                                                                                                          Thus :
                                                                                                          Develop Online supply chain
            Rural Produce
           Collection Centres                           Small retailers
                                                                                          Local vendors   Technology backbone with offline
                                                                                                          distribution mechanisms
           Farmers
                                                                                                          Create a network of farmers,
                                                                               Urban area                 intermediaries, logistics providers,
                                                                            Distribution centre
                                                    Local
                                                 Distribution                                             distributors and retailers
                                                                                                          Provide common support services
                                                                                                          like marketing , training ,
                      Compost/Manure
                        from waste
                                                                                   Food Processing
                                                                                        units
                                                                                                          technology and agri business
                                                                                                          consulting
                                   Bulk buyers
                                (Hotels / Caterers /
                                    Retailers)
                                                                             Exports                      ‘Organize’ the ‘un-organized’ rural
                                  eFarm Common Services
                                                                                                          to urban supply chain
 Planning &
Coordination
                         Research
                                           Call centre /
                                          Communication
                                                                      Technology
                                                                                          Training &
                                                                                           Support        Manage the network to ensure
                                                                                                          sustainability across the chain
Solution | The Big Picture – Connecting The Dots

                                           Value added resellers
                                           Sorting , Grading , Processing, Packing



                        Storage
                        Warehouses



                                                                            Bulk buyers
                                                                            Exporters




 Farmers
 Cooperatives
 Collection centers

                                                                             Kiranas
                                                                             Self Help
                                                                             Groups
                                                                             Hawkers

Village ICT kiosks
Phone booths            Logistics Fleet   Small Independent transporters
Mobile operators        operators         Intra-city small tempos
The Ideal Agri-preneur

                   .. Ready to
                   jump into
                   fire …



Have the
discipline of a
soldier ….                       .. But still ‘enjoys’
                                 doing the
                                 impossible !

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WhyIsThereAnAgriCrisis.pdf

  • 1. eFarm Enabling FArmers to Reach Markets An Agri Supply Chain Platform Linking farmers and consumers Why is there an Agri Crisis in India ? Key problems and simple solutions Venkata Subramanian , Founder & COO Srivalli Krishnan , Co-Founder & CEO
  • 2. Only a crystal clear question yields a transparent answer – Zen saying PROBLEM STATEMENT
  • 3. Pain areas | The Agri Supply Chain Current State : Too Many Steps , Too Little Value Addition Harvesting of • Unorganized , unregulated , Terminal markets to Vegetables unprofessional & unprofitable neighborhood wholesalers •A Middlemen’ dominated market 1 •Adhoc /Arbitrary Decisions on quality & price 5 Regional mandi to Wholesalers to Retailers 4 Terminal markets near A local mandi large cities auctioning 2 Local to Regional mandis for Auction 6 Loss in transit 40% Price hike Retailers to Dining Table 3 End to end > 400% 7
  • 4. Pain areas | The Farmer’s ‘REAL’ crisis Reality Check •Farmers cannot do “everything”. They need professional help and organizational support •Farming needs to become self sustaining and HENCE a business activity •High uncertainty and risks = Very low investor interest •Years of neglect & low esteem = educated youth avoid an agri career Need role models and pioneers to build the road to recovery
  • 5. Lack of Data| No visibility to supply or demand Reality Check • No accurate , dynamic data on supply • No market research on customer demand • No data = Wild guesses ?
  • 6. Pain Areas | Customer Spectrum Huge domestic demand, Escalating prices & Unmet needs Organised retailers are crowded in this space Competition high Low Income Middle High Hotels & Food & Export Group Income Income caterers Drink • ~1% of • > 40% in Group Group • ~25% of processors volume volume • ~ 20% in • ~5% in volume volume • ~5% of • Best quality / • Buy from volume • Buy from volume specific • Buy from products only neighborhood • Buy from retail chains wholesale • Product markets street vendors • Quality & mandi specific buyer (evening) • Price + Quality variety • Large volume • Pay more for conscious conscious + fixed price less quality range Efarm targets entire B2B segment and currently untapped areas
  • 7. Pain areas | Marketing -The missing link ? Reality Check The missing FIFTH ‘P’ of marketing No proper in agri context - PERISHABILITY !! customer Other industries have differentiated demand data production from marketing/sales Agriculture – Farmer handles both roles India’s agribiz is ‘supply driven’ Brands have value !! Indian products rather than though have wider varity and better taste have not established a stable ‘market driven’ brand
  • 8. Pain Areas | So many solutions , but why still a crisis ? R&D ICT Reality solutions Check Increase yield Lots of great Contract farming ideas and Export market effort But Exist in silos Cold chain Modern Blind men Micro and the retail & finance & logistics Grants elephant ?
  • 9. Market Scenario| Burning Crisis or Booming Oppurtunity ? India’s Total production of fruits & vegetables = •100 Million Tonnes = Rs 650,000 Crores (value) [ 1 tonne = 1000 kgs] Wastage in transit/handling/distribution = 40% Key focus Current market segmentation of organised players: areas for •Organised retail/Branded retailers share in F&V : 1.5% govt. for urgent •Food processing sector : 1% ( key pain : erratic supply) improvem •Export sector : 1% (key pain : poor grading, quality checks) ent Typical DAILY requirement of fruits & vegetables of Tier 1 city/metro : •4000 tonnes = Rs 6 crores value Source : IMAGES F&R Research Study , Govt of India , Dept. of Agriculture, Min. of Food processing Even a 1% improvement in this segment would create/generate/save Rs 650 Crores !!
  • 10. "We can't solve problems by using the same kind of thinking we used when we created them." Albert Einstein THE SOLUTION
  • 11. Key Innovations 1) Weighing machine = standardise agri business transactions ! Bundles, baskets , bags  Kilograms , Counts  2) Simple grading = right quality to right customer!! Mixed grades  S / M / L (Or) excellent / OK /bad  3) Simple technology = widest usage !!! PCs, Websites  Mobile phones , Voice, SMS 
  • 12. Value proposition | Unlock revenue potential across the chain Cleaning / Packing Quality Inspection/ Grading Routing Every stakeholder is alternately a Long haul buyer or seller of agro goods, linked Transportation together by a common system. Thus : Develop Online supply chain Rural Produce Collection Centres Small retailers Local vendors Technology backbone with offline distribution mechanisms Farmers Create a network of farmers, Urban area intermediaries, logistics providers, Distribution centre Local Distribution distributors and retailers Provide common support services like marketing , training , Compost/Manure from waste Food Processing units technology and agri business consulting Bulk buyers (Hotels / Caterers / Retailers) Exports ‘Organize’ the ‘un-organized’ rural eFarm Common Services to urban supply chain Planning & Coordination Research Call centre / Communication Technology Training & Support Manage the network to ensure sustainability across the chain
  • 13. Solution | The Big Picture – Connecting The Dots Value added resellers Sorting , Grading , Processing, Packing Storage Warehouses Bulk buyers Exporters Farmers Cooperatives Collection centers Kiranas Self Help Groups Hawkers Village ICT kiosks Phone booths Logistics Fleet Small Independent transporters Mobile operators operators Intra-city small tempos
  • 14. The Ideal Agri-preneur .. Ready to jump into fire … Have the discipline of a soldier …. .. But still ‘enjoys’ doing the impossible !