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eFarm
Enabling FArmers to Reach Markets




 Using IT to Solve the Agri Crisis
 Venkata Subramanian , Founder - eFarm

                         Presented at the session :

                The “As You Go” Magic Wand that makes
                  IT affordable for the micro-enterprise




 Knowledge Partner for the
         Session                                      Event Organizer
Introduction : The Founders
                     Venkata Subramanian , COO                                                        Srivalli , CEO
                     MS (Computer Science), SUNY Albany,                                          MBA (ICFAI), 2000
                     Newyork , 2003                                                    B.Com Taxation, NMKRV, 1997
                     B.Arch , IIT Kharagpur , India , 1995

                     Over 12 years experience (1995-2007) in IT             8 years experience in Sales, Marketing, &
                     industry in roles such as Program               Operations. Has run two start-ups and organised
                     management, Portal development for BFSI          fund raising for NGOs as part of CSR programs.
                     clients, Outsourcing and Consulting




                                   Technology &                                                          Marketing and
                                    Operations                                                               HR




                                                                    Domain
 IT / Call entre       Operaions                  Call centre                         Marketing               HR         Finance
                                                                  Consultants




IT Dev. & Testing      Purchase &           Call centre / BPO
                                                                                                            Interns
     Team             Delivery Team                staff

                                                                                                                          2
Currently Better known as ….
                 ‘Hi-Tech Subziwallahs’ of Chennai




                                                                     Can privatizing agriculture solve
                                                                     marketing problems?
                                                                     Farmer’s Notebook , M.J. PRABU




            A network of collection centres and distribution centre in
            Chennai and surrounding districts, procuring daily from over
            2500 farmers and supplying to leading retail outlets,hotels,
            caterers and restaurants in the city.



Most Promising
Startup 2011
                                                                                                         3
What does a ‘Farmer’
   got to do in a
‘MSME’ Conference ?

 Farmer as an entrepreneur
Villagers are ‘illiterate’ .
How can they understand
         hi-tech?

          Mobile phone
 Social Networking : urban v/s rural
      Education v/s Intelligence
Farmers are poor and used
 to ‘freebies’.They cannot
      afford to ‘buy’ ?

           Land cost
     Mobile phone + top up
How we counter ‘freebie’ argument
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
So many solutions , but why still a crisis ?
     “Blind men and the elephant” syndrome in agri
                    R&D                               Without
     FDI in
     Retail                                           reliable
                                     Increase
                                       yield            and
                                                     LIVE data
Contract                                                any
farming                                   Export
                                          market
                                                        agri
                                                   intervention
                                                         Or
                                                   agri-business
                                                       will be
                                                          A
   Cold
   chain
                           Subsidies, L
                                                    failure
               GM foods
                           oans, grant                     8
                                s
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 ?
“Desi” Problems need ‘Jugaadu’
           solutions
What does Farmer ‘really’ need?
Key problems for farmer
                                                          Suppliers        Transporters
1) Limited choice of buyers
2) Lack of Labour
3) Rising Input Costs of agro-supplies           Buyers                                Labour
4) Rising Transport Costs
5) Unviable market prices
                                                              eFarmdirect.com
    All other Industries use                               Web portal | Call centre| SMS
     ICT tools and Software
    applications to manage
                  operations
                   Whereas,
                                          efarmDirect is a
    Farmers have not been
                                 B2B online platform which uses
     IT enabled and are cut
                                        simple ICT tools to
          off from the ‘new’
                                CONNECT farmers with all the agri
                       world
                               supply chain stakeholders to build a
                                 nationwide farmer’s marketing
                                              portal
                                                                                                11
DEMO : EFARMDIRECT
How Does It Work ?
               1.Collect                                          Details are in
                       Farmers                                    efarmdirect website
                     Information
                                                                  •Registration process
                                                                  •Video/Presentation
    7.Expand to                                2.Collect
   new locations                                Buyers
                                             Information             Phase 1
                                                                     Phase 2
                                                                     Phase 3
                                            3.Setup Rural Call
6.Labour                                         centres
                                               Dynamic updates
                                             through mobile/sms
                                                Buyer-Seller
                                                matchmaking

    5.Transporters
                         4. Register Agri
                        input suppliers /
                             dealers
                                                                                 13
How to Access the eFarmDirect Platform ?
                Human-Technology Interfaces
                eFarmDirect Platform
                                        Voice enabled
                                           Human-
                                         Computer
     Franchisee /                         Interface
                       Call centre /                                        Web portal /
    Sales person ,                                            SMS
                        Rural BPO      (IVRS / Web 2                       Mobile devices
   Human assisted
                                       voice / Natural
                                          language
                                         processing)


Expected Usage pattern : Sales person/Franchisee ( 25% ) , Local language Call
centre / Rural BPO (45%) , IVRS / Voice driven self driven – (10%) ,SMS – 15%
,Web / Smart phones < 5%
Why ? -Most people are ‘off the web’ as in remote areas , Primary users not computer savvy
                              www.efarm.in | www.efarmdirect.com |
Technology development will focus on enhancing expected usage/behaviours through
                              Strictly Confidential | Materials may be        14
any interface THEY choose ,and subject to copyright | Do notthem !
                                NOT force ICT on circulate
Revenue Model
               Farmer      Buyer        Input       Labour     Transport   Notes
                                        Supplier               er
Registration   50/-        100/-        200/-       Rs 10/-    100/-       ONE TIME,
& Activation                                                               LIFETIME
                                                                           VALIDITY
Usage fees                                                                 ANNUAL
Individual     600/- p.a   1500/- p.a   5000 p.a    120 p.a    1500 p.a
user
Monthly        60/- pm     150 p.m      500 p.m     15 p.m     150 p.m     To encourage
‘top-up’                                                                   small users to
option/fee                                                                 signup
Corporate      6000/-      12000 p.a    18000 p.a   1000 p.a   15000 p.a   Multi
/Large unit    p.a                                                         users/chains/NG
                                                                           Os/Federations
DATA COLLECTION - FARMER
                                 Production data
                                 • Produce name, variety
                                 • Grade
                                 • Typical yield at harvest
                                 • Harvest cycles
                                 • Cost price at farm gate
                                 • Organic ? Certifications ?

                                 Farmer information
How data is collected ?          • Name
                                 • Address
•At farmer mela’s and            • Contact number
exhibitions                      • Preferred mode of payment
•Through partners like NGOs,     • Bank / Post office details
KVKs, Agri institutions, rural   • Photo
banks and MFIs                   • Attestation
•Through franchisees             Other information
                                 • Land type/irrigation type
                                 • Banking information

                                                                16
Basic Buyer-Seller Search and
                   Features
Search by
produce, availability, quantity,
price                                             Demand /
                                                  Supply
                                                  projections
                                                  for future
                                                  planning




Farmer/buyer                       Map view for
details with                       locating
contact info                       farmers by
                                   area                 17
Advanced Features
                                                                  Rating and review
                                                                  mechanism
                                                                  farmers and buyers
                                                                  can provide feedback
                                                                  which builds
                                                                  transparency and
Audio Visuals Marketing                                           identifies ‘good’
Farmers can add                                                   performers
audio/videos/pictures
about their produce /
products to showcase
uniqueness
                            GROUP view
                            map small farmers to respective
                            SHGs, Federations and Institution –
                            enables ‘aggregate’ of quantities
                            to meet larger demands as a
                            ‘combined entity’
                                                                                   18
Value proposition |
    Connecting the Dots
                           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
Livelihood Generation and Social
            Impact
         • Creating Agri entrepreneurs in Rural Areas
         • Rural youth/ Women are trained as local representatives for data
           collection/updation
         • Revenue from commissions and value added services




         • Providing Employment for Disabled and Under

  :        priveleged
         • Call centres/BPOs operated by differently abled – visually challenged
           , speech/hearing impaired
         • Job opportunities for those tapping unconventional talent pool of India



         • Reverse migration to villages
         • Create labour pools of semi-skilled labourers for farm work who are
           available ‘on-call’
         • Create central equipment leasing model so that farmers can ‘hire-an-
           equipment and operator’ to reduce equipment costs


                                                                                     20
Next Training Session
                        Venkata Subramanian
    Sep 1st & 2nd       Founder & MD /COO
                        venky@efarm.in
                        (M) 98847 61354


                        Srivalli Krishnan
                        Co-Founder, Director /CEO
                        srivalli@efarm.in
                        (M) 7418844275


                        •Company website :
                        •www.efarm.in

                        •Farmers Portal :
                        •http://www.efarmdirect.com/

                                               21

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Using IT to Solve Agri Crisis : eFarmDirect experience

  • 1. eFarm Enabling FArmers to Reach Markets Using IT to Solve the Agri Crisis Venkata Subramanian , Founder - eFarm Presented at the session : The “As You Go” Magic Wand that makes IT affordable for the micro-enterprise Knowledge Partner for the Session Event Organizer
  • 2. Introduction : The Founders Venkata Subramanian , COO Srivalli , CEO MS (Computer Science), SUNY Albany, MBA (ICFAI), 2000 Newyork , 2003 B.Com Taxation, NMKRV, 1997 B.Arch , IIT Kharagpur , India , 1995 Over 12 years experience (1995-2007) in IT 8 years experience in Sales, Marketing, & industry in roles such as Program Operations. Has run two start-ups and organised management, Portal development for BFSI fund raising for NGOs as part of CSR programs. clients, Outsourcing and Consulting Technology & Marketing and Operations HR Domain IT / Call entre Operaions Call centre Marketing HR Finance Consultants IT Dev. & Testing Purchase & Call centre / BPO Interns Team Delivery Team staff 2
  • 3. Currently Better known as …. ‘Hi-Tech Subziwallahs’ of Chennai Can privatizing agriculture solve marketing problems? Farmer’s Notebook , M.J. PRABU A network of collection centres and distribution centre in Chennai and surrounding districts, procuring daily from over 2500 farmers and supplying to leading retail outlets,hotels, caterers and restaurants in the city. Most Promising Startup 2011 3
  • 4. What does a ‘Farmer’ got to do in a ‘MSME’ Conference ? Farmer as an entrepreneur
  • 5. Villagers are ‘illiterate’ . How can they understand hi-tech? Mobile phone Social Networking : urban v/s rural Education v/s Intelligence
  • 6. Farmers are poor and used to ‘freebies’.They cannot afford to ‘buy’ ? Land cost Mobile phone + top up How we counter ‘freebie’ argument
  • 7. 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
  • 8. So many solutions , but why still a crisis ? “Blind men and the elephant” syndrome in agri R&D Without FDI in Retail reliable Increase yield and LIVE data Contract any farming Export market agri intervention Or agri-business will be A Cold chain Subsidies, L failure GM foods oans, grant 8 s
  • 9. 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 ?
  • 10. “Desi” Problems need ‘Jugaadu’ solutions
  • 11. What does Farmer ‘really’ need? Key problems for farmer Suppliers Transporters 1) Limited choice of buyers 2) Lack of Labour 3) Rising Input Costs of agro-supplies Buyers Labour 4) Rising Transport Costs 5) Unviable market prices eFarmdirect.com All other Industries use Web portal | Call centre| SMS ICT tools and Software applications to manage operations Whereas, efarmDirect is a Farmers have not been B2B online platform which uses IT enabled and are cut simple ICT tools to off from the ‘new’ CONNECT farmers with all the agri world supply chain stakeholders to build a nationwide farmer’s marketing portal 11
  • 13. How Does It Work ? 1.Collect Details are in Farmers efarmdirect website Information •Registration process •Video/Presentation 7.Expand to 2.Collect new locations Buyers Information Phase 1 Phase 2 Phase 3 3.Setup Rural Call 6.Labour centres Dynamic updates through mobile/sms Buyer-Seller matchmaking 5.Transporters 4. Register Agri input suppliers / dealers 13
  • 14. How to Access the eFarmDirect Platform ? Human-Technology Interfaces eFarmDirect Platform Voice enabled Human- Computer Franchisee / Interface Call centre / Web portal / Sales person , SMS Rural BPO (IVRS / Web 2 Mobile devices Human assisted voice / Natural language processing) Expected Usage pattern : Sales person/Franchisee ( 25% ) , Local language Call centre / Rural BPO (45%) , IVRS / Voice driven self driven – (10%) ,SMS – 15% ,Web / Smart phones < 5% Why ? -Most people are ‘off the web’ as in remote areas , Primary users not computer savvy www.efarm.in | www.efarmdirect.com | Technology development will focus on enhancing expected usage/behaviours through Strictly Confidential | Materials may be 14 any interface THEY choose ,and subject to copyright | Do notthem ! NOT force ICT on circulate
  • 15. Revenue Model Farmer Buyer Input Labour Transport Notes Supplier er Registration 50/- 100/- 200/- Rs 10/- 100/- ONE TIME, & Activation LIFETIME VALIDITY Usage fees ANNUAL Individual 600/- p.a 1500/- p.a 5000 p.a 120 p.a 1500 p.a user Monthly 60/- pm 150 p.m 500 p.m 15 p.m 150 p.m To encourage ‘top-up’ small users to option/fee signup Corporate 6000/- 12000 p.a 18000 p.a 1000 p.a 15000 p.a Multi /Large unit p.a users/chains/NG Os/Federations
  • 16. DATA COLLECTION - FARMER Production data • Produce name, variety • Grade • Typical yield at harvest • Harvest cycles • Cost price at farm gate • Organic ? Certifications ? Farmer information How data is collected ? • Name • Address •At farmer mela’s and • Contact number exhibitions • Preferred mode of payment •Through partners like NGOs, • Bank / Post office details KVKs, Agri institutions, rural • Photo banks and MFIs • Attestation •Through franchisees Other information • Land type/irrigation type • Banking information 16
  • 17. Basic Buyer-Seller Search and Features Search by produce, availability, quantity, price Demand / Supply projections for future planning Farmer/buyer Map view for details with locating contact info farmers by area 17
  • 18. Advanced Features Rating and review mechanism farmers and buyers can provide feedback which builds transparency and Audio Visuals Marketing identifies ‘good’ Farmers can add performers audio/videos/pictures about their produce / products to showcase uniqueness GROUP view map small farmers to respective SHGs, Federations and Institution – enables ‘aggregate’ of quantities to meet larger demands as a ‘combined entity’ 18
  • 19. Value proposition | Connecting the Dots 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
  • 20. Livelihood Generation and Social Impact • Creating Agri entrepreneurs in Rural Areas • Rural youth/ Women are trained as local representatives for data collection/updation • Revenue from commissions and value added services • Providing Employment for Disabled and Under : priveleged • Call centres/BPOs operated by differently abled – visually challenged , speech/hearing impaired • Job opportunities for those tapping unconventional talent pool of India • Reverse migration to villages • Create labour pools of semi-skilled labourers for farm work who are available ‘on-call’ • Create central equipment leasing model so that farmers can ‘hire-an- equipment and operator’ to reduce equipment costs 20
  • 21. Next Training Session Venkata Subramanian Sep 1st & 2nd Founder & MD /COO venky@efarm.in (M) 98847 61354 Srivalli Krishnan Co-Founder, Director /CEO srivalli@efarm.in (M) 7418844275 •Company website : •www.efarm.in •Farmers Portal : •http://www.efarmdirect.com/ 21