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WELCOMTOTHE PRESENTATION ON
AGROY : Creating Value Through Smart Farming
Group 2:
Anurag Chaudhary
Munneer Ahmed
Learning Outcomes
The objective is to outline the marketing, strategic and
organizational issues facing the ever-expanding agri-inputs market
in India, through the perspective of Agroy – an agri-products
company.The case has been developed to understand the arduous
nature of setting up a company catering to the huge Indian agri-
inputs market.
Introduction of Agroy
• Agroy is a cloud-basedWeb and mobile platform for farmers to
buy agri-inputs efficiently at scale and at the best price from
around the world. Founded in 2011 in Helsinki, Finland, Agroy
expanded internationally to the US in 2016 and was poised to
expand into India in 2017 with Brazil and Canada slated next for
expansion.
• Agribusiness still follows very traditional way of business with a
huge network of middlemen, stores and high costs, which
farmers must pay as a mark-up when they buy inputs. Agroy
bought directly from manufacturers and sold to farmers (CnF)
without any intermediaries.
• Agroy does not create an online shop, it builds farmer’s
network.The network works this way: more farmers join Agroy,
bigger order is made, bigger vessel is ordered, lower costs are
gotten, farmers are served with better prices.
Marketing Practices
1. Farmer group meetings
2. Information spread through word of mouth
3. By posting updates on Facebook and other platforms
4. By introducing simple processes and interfaces
Decision Problems
1. Will Amit Mittan (Country Manager) be able to establish the
concept of smart farming among poor and low-literate
Indian farmers? Why or Why not?
-Yes, Amit Mittan will be able to establish the concept of smart
farming among poor and low-literate farmers.
• Farmers want to get rid of the middlemen who exploit
themselves.
• Jio is expanding very rapidly in the rural areas
• Literacy rate is improving in rural India
• Agroy has the ability to provide agricultural education
assistance.
Some of the things that he can do are:
1. Better payment schemes
2. Making farmers realize how they could benefit by having knowledge
assistance fromAgroy
3. By making farmers educated about the economical benefits farmers have
got by usingAgroy’s services across the country
4. Several well-known fertilizer and agrochemical companies like Koch Bayer,
Dupont and Monsanto could serve as reliable fertilizer and agrochemical
manufacturers/ suppliers toAgroy.
2.Was it the right time for smart farming to come to India, or was it
too early? Why or why not?
• Smart farming : Smart farming systems also known as precision
farming systems reduce waste, develop productivity and enable
management of a greater number of resources through remote
sensing.
• This requires Huge capital , which is highly difficult for most of the
farmers in India.
• Smart farming is expensive , implantation of sensors and
understanding all the working and science behind them would take
time.
• Most of the landlords give their agricultural land on lease to poor
farmers who are unlikely to afford smart agricultural services.
• Thanks to Jio rural people are now connected with internet and
communication is far easier than that of in early 2000’s
• Smart farming requires electricity or battery power which is hardly available
in rural India.
- Hence affordability , awareness , availability and acceptance are all ruled
out specially when we talk about rural India.
- Unless the Government starts a movement, provides low cost electricity,
huge subsidies on such services It isn’t the right time for smart farming
organizations to step into India, because they involve huge investment and
achieving break even would require years of efforts which might be bagged
by the late comers who would venture at the right time
Hence It wasn’t the right time for smart farming to come to India
SWOT Analysis
• Opportunities: • Strengths:
• Threats: • Weaknesses
1. Having Farm Management
System (ie.- sensors, cloud
based data system)
2. Lower Product Rate
3. Door-to-Door Delivery
Service
1. Can Start Credit & Insurance
Services to Farmers.
2. Crop Insurance.
3. Agri-output: Mobile Pickup
Stations
1. Competition from Micro
Retailers
2. Competition from well operated
international players.
1. Less Knowledge of Indian
Market.
2. Less usage of smart phone in
rural India.
Challenges
1. Door-to-door delivery of products.
2. Cash on delivery was the biggest concern for Agroy.(Virtually zero
digital transaction).
3. Small order size. (Higher Delivery Charges)
4. Internet connectivity in rural India always a Challenge.
5. Indian farmers had low technological awareness.
6. Demographic and language complexities.
ThankYou

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PRESENTATION ON AGROY.pptx

  • 1. WELCOMTOTHE PRESENTATION ON AGROY : Creating Value Through Smart Farming Group 2: Anurag Chaudhary Munneer Ahmed
  • 2. Learning Outcomes The objective is to outline the marketing, strategic and organizational issues facing the ever-expanding agri-inputs market in India, through the perspective of Agroy – an agri-products company.The case has been developed to understand the arduous nature of setting up a company catering to the huge Indian agri- inputs market.
  • 3. Introduction of Agroy • Agroy is a cloud-basedWeb and mobile platform for farmers to buy agri-inputs efficiently at scale and at the best price from around the world. Founded in 2011 in Helsinki, Finland, Agroy expanded internationally to the US in 2016 and was poised to expand into India in 2017 with Brazil and Canada slated next for expansion. • Agribusiness still follows very traditional way of business with a huge network of middlemen, stores and high costs, which farmers must pay as a mark-up when they buy inputs. Agroy bought directly from manufacturers and sold to farmers (CnF) without any intermediaries.
  • 4. • Agroy does not create an online shop, it builds farmer’s network.The network works this way: more farmers join Agroy, bigger order is made, bigger vessel is ordered, lower costs are gotten, farmers are served with better prices.
  • 5. Marketing Practices 1. Farmer group meetings 2. Information spread through word of mouth 3. By posting updates on Facebook and other platforms 4. By introducing simple processes and interfaces
  • 6. Decision Problems 1. Will Amit Mittan (Country Manager) be able to establish the concept of smart farming among poor and low-literate Indian farmers? Why or Why not? -Yes, Amit Mittan will be able to establish the concept of smart farming among poor and low-literate farmers. • Farmers want to get rid of the middlemen who exploit themselves. • Jio is expanding very rapidly in the rural areas • Literacy rate is improving in rural India • Agroy has the ability to provide agricultural education assistance.
  • 7. Some of the things that he can do are: 1. Better payment schemes 2. Making farmers realize how they could benefit by having knowledge assistance fromAgroy 3. By making farmers educated about the economical benefits farmers have got by usingAgroy’s services across the country 4. Several well-known fertilizer and agrochemical companies like Koch Bayer, Dupont and Monsanto could serve as reliable fertilizer and agrochemical manufacturers/ suppliers toAgroy.
  • 8. 2.Was it the right time for smart farming to come to India, or was it too early? Why or why not? • Smart farming : Smart farming systems also known as precision farming systems reduce waste, develop productivity and enable management of a greater number of resources through remote sensing. • This requires Huge capital , which is highly difficult for most of the farmers in India. • Smart farming is expensive , implantation of sensors and understanding all the working and science behind them would take time. • Most of the landlords give their agricultural land on lease to poor farmers who are unlikely to afford smart agricultural services. • Thanks to Jio rural people are now connected with internet and communication is far easier than that of in early 2000’s
  • 9. • Smart farming requires electricity or battery power which is hardly available in rural India. - Hence affordability , awareness , availability and acceptance are all ruled out specially when we talk about rural India. - Unless the Government starts a movement, provides low cost electricity, huge subsidies on such services It isn’t the right time for smart farming organizations to step into India, because they involve huge investment and achieving break even would require years of efforts which might be bagged by the late comers who would venture at the right time Hence It wasn’t the right time for smart farming to come to India
  • 10. SWOT Analysis • Opportunities: • Strengths: • Threats: • Weaknesses 1. Having Farm Management System (ie.- sensors, cloud based data system) 2. Lower Product Rate 3. Door-to-Door Delivery Service 1. Can Start Credit & Insurance Services to Farmers. 2. Crop Insurance. 3. Agri-output: Mobile Pickup Stations 1. Competition from Micro Retailers 2. Competition from well operated international players. 1. Less Knowledge of Indian Market. 2. Less usage of smart phone in rural India.
  • 11. Challenges 1. Door-to-door delivery of products. 2. Cash on delivery was the biggest concern for Agroy.(Virtually zero digital transaction). 3. Small order size. (Higher Delivery Charges) 4. Internet connectivity in rural India always a Challenge. 5. Indian farmers had low technological awareness. 6. Demographic and language complexities.