Financial management of_incubators_-_for_abi

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Financial management of_incubators_-_for_abi

  1. 1. Welcome TNAU Food business Incubator Delegates
  2. 2. Capacity Building Program Financial management & Self Sustenance S Sethuraman, Head, Financial Services, ICRISAT
  3. 3. Components <ul><li>Macro view </li></ul><ul><li>ABI in ICRISAT </li></ul><ul><li>ICRISAT in general </li></ul>
  4. 4. Financial Management <ul><li>An evolving process </li></ul><ul><li>Stage in business cycle </li></ul><ul><li>Business Model </li></ul><ul><li>Market conditions </li></ul>
  5. 5. Stage in Business Cycle
  6. 6. Key areas of concern <ul><li>Resource Mobilization </li></ul><ul><li>Pricing Methodology </li></ul><ul><li>Other considerations </li></ul>
  7. 7. Revenue Models <ul><li>‘Upfront’ or ‘As we go’? </li></ul><ul><li>Different streams </li></ul><ul><ul><li>Rent </li></ul></ul><ul><ul><li>Support services </li></ul></ul><ul><ul><li>Sharing in client’s success </li></ul></ul><ul><ul><ul><li>Equity </li></ul></ul></ul><ul><ul><ul><li>Royalty </li></ul></ul></ul><ul><ul><li>Combination of methods </li></ul></ul><ul><ul><li>Continuing Government funding </li></ul></ul>
  8. 8. Dilemma of start up ventures <ul><li>Pace of ‘Funding’ vs ‘Growth’ </li></ul><ul><li>Threat of ‘Degeneration’ </li></ul><ul><li>Capital – ‘Own’ or ‘Third party’ </li></ul><ul><ul><li>Loan </li></ul></ul><ul><ul><li>Equity </li></ul></ul>
  9. 9. Financial Management <ul><li>What to Manage? </li></ul><ul><li>Income & Expenses </li></ul><ul><li>Planning, Overseeing & Controlling </li></ul><ul><li>Cash Flow </li></ul><ul><ul><li>Short & Medium Terms </li></ul></ul><ul><ul><li>Frequent updating - Dynamic </li></ul></ul><ul><li>Equipments </li></ul><ul><ul><li>Record Keeping </li></ul></ul>
  10. 10. ABI in ICRISAT
  11. 11. <ul><li>Commenced in 2002 </li></ul><ul><li>NSTEDB of GOI assistance </li></ul><ul><ul><li>Mission </li></ul></ul><ul><li>Facilitate creation of competitive Agri-business enterprise </li></ul><ul><li>Through </li></ul><ul><li>Technology development and Commercialization </li></ul>
  12. 12. Resources <ul><li>Capital & Revenue grants </li></ul><ul><li>Earned income </li></ul><ul><li>Accumulated surplus </li></ul>
  13. 13. Revenue streams <ul><li>Rent </li></ul><ul><ul><li>Office </li></ul></ul><ul><ul><li>Lab </li></ul></ul><ul><ul><li>Controlled Environment facilities </li></ul></ul><ul><li>Office support services </li></ul><ul><li>Consultancy services </li></ul>
  14. 14. ICRISAT Vision Improved well-being of the poor of the semi-arid tropics Mission To reduce poverty, enhance food and nutritional security and protect the environment of the semi-arid tropics by helping empower the poor through science with a human face Operations Patancheru , 8 African Locations + golbal presence
  15. 15. Financial Challenges <ul><li>Unpredictability of Unrestricted grants </li></ul><ul><ul><li>Size </li></ul></ul><ul><ul><li>Timing </li></ul></ul><ul><li>Exchange rate risks </li></ul><ul><li>Need for reserves – Long term needs </li></ul>
  16. 18. Thank you

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