The document provides information about Hariyali Kisaan Bazaar, an initiative by Delhi Cloth and General Mills Company Limited (DSCL) to address challenges faced by Indian farmers. It discusses how Hariyali set up retail outlets called "Centers" and "Stores" within 15-30 km of villages to provide farmers access to inputs, advisory services, and output purchase. The initiative helped improve farmers' productivity, incomes and access to technology, credit, and markets. It also discusses the organization structure of Hariyali Kisaan Bazaar and alignment with objectives of inclusive growth in rural India. The document concludes by outlining some challenges faced in expanding the initiative such as maintaining profit margins, adapting to different customer

1. Hariyali Kisaan Bazaar
ABHISHEK BHOWMIK
ANAND GUPTA
ARJUN PAREKH
MIRAL SHAH
ROHAN BHARAJ
SYED MUJTABA

2. Indian Farming
2nd Largest growing
area in world
(141 Million
Hectres)
Largest irrigated
crop area
Among top three
global producers of
major crops
Largest and fastest
growing poultry
Commercializatio
n in developed
economies and
livelihood for
Indians.
Still using old and
traditional
technology.

3. Why Hariyali Project?
 Hariyali Modern campus includes a retail outlet, fueling station, bank, and
demonstration plots.
 Experience Modern retailing to determine product selection and transparent
pricing.
 Uniformed sales employees, trained agronomists, interaction with customers
to determine the most best crops to be grown.
 Training on best production techniques and monitoring production fields for
problems.
 Benefiting farmers by buying surplus production at harvest time.
Allocation of 150-180 crore to 75 rural retail outlets of Hariyali for development and expansion will help in
increasing productivity.

4. MSP-driven
procurement
system
Unreliable buyers
Too many
intermediaries
Lack of technical
know-how
Poor quality of
inputs
Credit trap
Fragmented
market
FARMERS LACK OF
COMMERCIAL
ORIENTATION
INPUT OUTPUT

6. DSCL
• Founded in 1889 under the name Delhi Cloth and General Mills Co. Ltd. (DCM).
• Started as a spinning mill and later diversified into various businesses such as
sugar, edible oil, chemicals, fertilizers etc.
• Restructured in 1990 and came to be known as DSCL.
• Ajay Shriram and Vikram Shriram served as Chairman and Vice-Chairman
respectively and owned 54.55% of DSCL.
FY2005-06
Sales - $612 million
Profit - $36.7 million
60% of Net Sales – Agricultural Products
40% of Net Sales – Power Intensive Commodities

7. Hariyali
Kisan Bazar
Input
Retailing
Agri
Advisory
Serices
Output
Contract
Farming
Direct
Linkage to
Buyers
Business Model

8. Facilities at a Store:
Fueling station
Banking facilities
Parking areas
Demonstration areas
Water fountains
Green recreating zones

9. USP of Harriyali Stores:
V/S
• Clearly labelled price tag
• Allowed farmers to touch and feel the product
• Choices
• Transparent pricing
• Within 15-30 km radius
• Over the counter sales
• Next to the consumer
• Trust factor

10. Cost to Build a Store:
Radius 15-30km
Households 15000-20000
collectivearea 60,000-80,000
Costto build 10,00,000-15,00,000
Costto build 2,00,00,000-3,00,00,000
Yield/acre 14,000
Cost/acre 4000
Businesspotential 2,40,00,000-3,20,00,000

11. The Hariyali Kisaan Bazaar Initiative
• DSCL was aware of the farmers’ plight.
• They saw value in the relationships and trust that had been cultivated between
DSCL and the farmers.
• The seed for Hariyali Kisaan Bazaar was sown when DSCL initiated the ‘Shriram
Krishi Vikas Guides’.
• Mr. Ajay Shriram saw this as a profitable long-term business proposition.
• Finally in 2002-03, after a two year planning phase and talking to 200 farmers,
the Hariyali Piolt project was launched at 5 locations.

12. Farmers’ Reaction
• Five-day Launch.
• Farmers were skeptical at first.
• They found out that that the farmers are willing to spend more if they feel the
product is of good quality.
• By 2007, the farmers were demanding Hariyali to stock greater variety of
products such as refrigerators, heating coils, televisions, insurance , banking etc.
• It became a place for social gathering.
• It was more than just providing choice, it provided the much needed ’Respect’ and
‘Dignity’ to the farmers.

13. Formats
Center
• A model rural hub located near large
rural agglomerations or highways
• Focused on all retail and agri
businesses
• Format that encompasses Agri-
services, One-stop-retail-shop,
Sourcing, Banking services, Fuel
station and Recreation areas
• Spread over owned 4 acre campus
• Retail space of 15-20K sqft.
Store
• Located in the marketplace of small
towns
• Focused mainly on retail businesses
• Convenience format encompassing
agri-services and retail of select
categories
• Compact space of 4K-5K sq. ft
retailing agri-inputs and FMCG
Penetrating markets through appropriate formats

14. Hariyali - Centers

15. Hariyali - Stores

16. HKB is a fully functional organization with senior resources dedicated to category management ,commodity trading, output
businesses, financial services etc.
At the lower level each hariyali outlets had about 11 salespeople under an outlet manager.
Category managers decided what products Hariiyali would provide in outlets .They recruited skilled agronomists. They also worked
with outside consultants to help plan trainings and sessions with new sales people.
Hariyali also used enterprise wide software system to track pricing ,sales data, vendor information and other statistics empowered
by SAP.
The diagram on the left side depicts the organization structure.
HEAD OF
RETAIL OPS
CATEGORY
MANAGERS
REGIONAL
MANAGER 1
TERRITORY
MANAGER 1
OUTLET
MANAGER
TM 2 – TM 9
RM 2 RM 3

17. Hariyali’s Alignment With Objectives Of Inclusive Growth
1. Investment in Rural Infrastructure
Each centre, set up over 2-3 acres of land, provides need-based infrastructure to the farmers.
Facilities include a warehouse for agri-inputs or farm produce, an agri-advisory centre equipped with
qualified agronomists, a veterinary centre with qualified vet doctors & availability of medicines.
An information centre with IT linkage to a team of scientists
Availability of diesel and petrol.
Addition of bank branches & ATMs to these centres will help in achieving the government’s objective of
taking credit to the micro level.

18. 2. Improving farmer’s productivity & profitability
provide 24X7 technology support through a team of dedicated qualified agronomists.
critical last mile delivery of agri advise to the farmers to ensure adoption of
appropriate modern agri practices.
focus is on shifting farmers from subsistence to technology led commercial farming.
3. Aggregation of Farm Produce
Fragmented land-holdings, a major constraint in Indian farming.
Create the opportunity to aggregate farm produce & market it to buyers hitherto
inaccessible to individual farmers.

19. 4. Access to information & Use of IT
Use of IT to provide online support on
Latest technical advancements
Weather forecasts
Mandi (market) prices
Fair & transparent billing to farmers
Maintain extensive farmer databases with micro information about the farmers’ field to provide customized service to the
farmers.
5. A Sustainable model for Public-Private partnership
Hariyali initiative aimed at enhancing the agricultural income of the farmer,
Commercial viability of the business model to ensure sustainability.
Case for collaboration of government efforts with the private sector, as ultimately it would put development on a self-
sustaining path.

20. Other Rural Initiatives
• Like DSCL, ITC had its own agribusiness unit that
diversified into retail outlet networks.
• In 2000 ITC launched a web based program for farmers to
improve its procurement operations.
• E-choupals.
• Choupal Pradarshan Khets.
• Choupal Sagar.

21. E-Chaupal Haryali Kisaan Bazaar
Main objective Procurement Rural Retail
Benefit to the farmers computer application to
provide market information
provide better method of
cultivation by trained
agronomist
Synergies Synergies with products
which ITC is manufacturing
Synergies with what DSCL is
selling(inputs to agriculture
plus other services
Economies of scale 25-30 km area coverage 20-25 km area coverage
Procurement centre near small town Strategically placed near
petrol pump mainly
Difference Between E-Chaupal And Haryali Kissan Bazaar

22. Challenges to Expansion
1) Maintaining Profit-Margins while managing both the Input and the
Output sides of the business.
Mr. Gupta imagined that Hariyali could be a ‘bulk-buyer’ and serve as conduit to
Rural India for companies wanting to sell products/services there.
Now, the challenge was, Mr. Gupta wanted to keep their costs low so that they
can offer good prices to the retailers while at the same time they also wanted to
pay attractive prices to the farmers for their crops.

23. Challenges to Expansion
2) Moving from ‘Farmer’ to ‘Rural Consumer’ – The change in Customer
Persona
When the Hariyali Management team decided to broaden the offer to include
the rural consumers and also meet non-agri needs of farmers, they understood
that while moving to a broader market space, they are actually competing with
a host of people who are trying to understand the rural consumer.
The incentives, pricing, etc. – they needed to learn it all. They needed to learn
about other products and how they sell, which they didn’t know at that
moment.

24. Challenges to Expansion
3) Geographical Expansion – Differing languages, differing Business
Practices.
While venturing into new rural-geographies, the challenges faced can be
understood by the example:
In northern state of Punjab, 90% agri-purchases were made on credit, with
very few cash transactions. As a cash-only establishment, Hariyali was
particularly challenged by this. Furthermore, India had at least 16 National
languages and 1600 regional dialects.
This makes cross-region communication difficult. This creates additional
challenges around meeting consumer’s regional aspirations, buying habits,
brand preferences, etc.

25. Challenges to Expansion
4) Managing Brand-Image:
As the number of outlets increase, it becomes harder to maintain control over
staff and customer service levels and thus the image of the outlets.
“Having 10,000 people working for you is one thing, having 10,000 people
working in 1,000 different locations is another” quoted Mr. Chhabra.

26. Thank You