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eFarm : A Farmer To Consumer Agri Supply Chain Network




                 The Agri-Supply Chain Crisis : Background
                 The eFarm Solution
                 Market Potential & Competitive Landscape
                 Operations Overview
                 Technology Behind eFarm : Overview
                 Benefit to farmers and buyers
                 Timeline
                 Highlights
                 FAQ


Presented By :   Venkat and Valli
                 Founders , eFarm
                 www.efarm.in
                 HO : 11 Loganathan colony, Mylapore, Chennai , Tamilnadu
Harvesting of
                                                                                                   Terminal markets to
     Vegetables              • Unorganized, unregulated, unprofessional &                       neighborhood wholesalers
                             unprofitable
                             • Lack of demand/supply data
                     1       • No reliable sales, distribution, marketing channels
                             • Poor logistics and storage
                             • A Middlemen‟ dominated market                                                                  5
                             •No IT/ERP usage – decisions are adhoc and arbitrary

                                                                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
 Farmer’s REAL needs – Not money but Marketing !!
     They are not even getting break even price – inspite of all
        subsidies & assistance
       There is severe Labour shortage as young adults disinterested in
        farming activities
       Land is plenty – but water is scarce
       Rural – Rich (Large farmers) , Urban – Poor (Poor vegetable
        vendors)
       Largescale Migration to city from villages in search of stable jobs
       Rapid urbanisation , Loss of prime land
   Need to shift from Supply driven to Market driven
    agriculture
Market Scenario
Data                                     Value                  Notes                                  ITC, Nilgiris,
Fruits & Vegetables (Total market)        668800 Cr             Organised + Unorganised                Reliance, More, Big
                                                                                                       bazaar etc all put
Organised segment                            8216 Cr            < 1.2% of total market                 together !!!

Total Volume of fruits & vegetables           100 Million
produced                                          Tonnes
                                                                                                      India is a World leader in
                                                                                                      PRODUCTION but still
Amount processed                               1%               World avg ~ 40%
                                                                                                      IMPORTING our food to
Amount exported                                1%               Not in top 25 in world exporters      meet local demand

Wastage in transit & handling                 40%               ~ Rs 40000 Crores lost revenue
                                                                                                        Even a 1% reduction
                                                                                                        in wastage will
Average per person monthly                      68 Rs           11% of monthly expenses on food         generate additional
expenditure in F&V (Urban)                                                                              5 crores in profit to
Avg. per person monthly                          8 kgs                                                  farmers !!!
consumption of F&V
Over 60% involved in agriculture & related                     Typical scenario for a metro city in India with 5 Million
activities, but contributes less than 20% to                   population :
GDP. Growth rate Y-O-Y is just 2% owing to                     Daily demand : 1250 tonnes
lack of professional management & focus                        Daily sales : Rs 1.2 Crores
Source : IMAGES F&R Research Study , Govt of India , Dept. of Agriculture
   The Farmer :
     Mandi system does not offer stable , sustainable price realization
     Organised retailers don’t pick lower grades , have long credit periods
   The Lorry drivers :
     Lorry booking agents/brokers take 40% of cut. Fluctuating rates and
      high stress work
   The Sellers :
     Organized retail : High investment , Poor supply chain, Low volumes
     Unorganised retailers : Sabjeewallah/push cart vendors :
      ▪ Missing link and unsung heroes of the supply chain. (Over 90% of volume
        retailed here)
      ▪ No proper benefits / finance / support
   The Buyers :
     Housewife : Fluctuating costs, Poor quality
     Hotels / Food processors : High costs, Unreliable suppliers
     Exporters : Poor standards / quality , High logistics cost
The eFarm Vision : The Big Picture
   A shared platform connecting all stakeholders

                                          Value added resellers
                                          Sorting , Grading , Processing, Packing



                      Storage
                      Warehouses



                                                                           Bulk buyers
                                                                           Exporters




 Farmers                         eFarm
 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
Create a network of farmers, intermediaries, logistics providers, distributors and
 retailers
 ‘Organize’ the ‘un-organized’ rural to urban supply chain to create sustainable prices
 for the rural members of the chain
 Create a shared sourcing/marketing/distribution/retailing platform which is a
 combination of offline delivery mechanism with online IT systems :
               IT based B2B order matching/fulfillment system (e.g. Amazon, eBay)
                                                    +
     Low cost-efficient, „Indianised‟ logistics & delivery mechanism (e.g. AMUL, Dubbawallahs)
                                                    +
    People driven Direct To Consumer Marketing / Retailing channel (e.g. HLL‟s Shakti, Amway)
                                                    +
              Bottom Up Entrepreneur driven model to reach all customer segments
                                   (Self help groups, Micro finance)

Our goal
• Build a nationwide agri-supply chain network platform - Enable fair, efficient & reliable
   business across the community
• Make agriculture self sustaining and curtail erratic fluctuations in price/quality
• Generate job opportunities in BOP socio-economic strata in rural and urban areas
Price                                              Organised Players
•Premium stores                                                                            Low volumes, Hit by
(Organic etc)                                        •F&V focussed stores                  recession and low
                                                     (e.g Pazhamudhir
                                                     Nilayam)
                                                                                           profitability
            •Branded Retailers                     High
            (Reliance ,Low etc)
                       More Volume                Volume,                                  Premium stores
                       , High •Push
                              price                                                        :Sourcing and regular
                             carts               High price          •Kirana stores        supply issues
                             , street
                             vendors                                                       Terminal markets
                                                                        Volume             Lack of
                                                           •Regional/Terminal markets      standards, transparen
                                                                                           cy, trader/broker
                                                       High                                dominated
                       Low Volume,
                                                Volume, exchanges
                                                •Commodity Low
                        Low price               (e.g. SAFAL)
                                                      Price                                Push carts & Kiranas
                                                                                           Local presence to end
                                                                                           customer , but high
      •Village mandi                                                                       wastage

                                        As eFarm connects all players and acts as buyer or
                       eFarm            seller in different segments, it will have a wider
                                        footprint and better control on end to end profitability
eFarm Registers the
1
      farmers, transporters and other
      intermediaries with basic details such
      as produce type, volume, expected
      price range etc.,                                                       Advance amounts are collected from buyers
                                                                        4    .Payments are made to farmers and
                                                                                                 -
2   eFarm identifies key buyer segments                                      intermediaries upon delivery.
    and identifies preliminary for the
    products. eFarm consolidate the
    Orders from buyers (B2B) received
    through phone, email and walk-in to                                 5     The vegetables are sorted and graded at the
    make one consolidated demand list                                         eFarm Distribution centers and delivered to
                                                                              respective customer locations (B2B)

        -
3   eFarm sourcing managers track prices
    across different areas and feed in the
    data. The central order matching
    system determines best
    source, location and logistics channel                                    The orders are delivered immediately through
                                                                        6     delivery vans,push carts etc to end
    for fulfillment.
                                                                              customers


                               Lessons learnt, feed back and data analysis conducted on the order received is shared with
                          7    the members in the chain. This helps to optimize the operation continuously and increase the
                               value creation across the chain.
Cooperatives    Hub and Spoke Model For                                       Catering/Hotels


  Producer                        Scalability and Organic Growth
  Corporations

                                                                                                        Exporters

                 Rural                                                            Urban
SHGs
                 Collection          Forward Logistics ( Fresh Produce)           Distribution
                 Centres                                                          Centers
                                                                                                     Food Processors
                                  Reverse Logistics ( Manure , Farmer supplies)


                                                                                                        Bulk buyers

   Small & mid sized farmers
                                                                                  Retailers /
                                                                                  Mom & Pop stores



                                                                          … organic growth and
                                                                          expansion
•IT Systems usage           : NIL
•Management team            : Illiterate and average age of 55
•Age of company             : Over 150 years
•Customer Segment           : From slumdwellers to crorepathis
•Operational efficiency     : Six sigma !!!


The Mumbai Dubbawallahs !!!
    •Key success factors : (video English Hindi)

    •Highly decentralized operations – agile, flexible , scalable
    •Use of low cost transport medium – trains
    •Use of human power for last mile delivery – No Fuel related hikes
    •Strong customer relationship – personal , localised
    •Simple coding, routing, labelling system – operates even without electricity !
    •Delivery excellance – fixed time , professionalism
Fix the process
        first
     And THEN
    Implement
    technology
 Otherwise will be
  a failure …..
Open source
Tools &
technologies
               AgriXML
               As a dataXchange
               format
Collaboration and B2B trading
platform
     •Content : Daily pricelists,
     Schedules, Trends , Buyers
     guides
     •Order management
     •Search / Track items
     •Delivery tracking
     •Agri specific social networking

Backoffice Systems
    •Customer relationship
    management
    •Supply chain management
    •Mobile/SMS gateway interface
    •Voice based interface
    •MIS & Data mart
ICT Technology and the BOP segment :
Challenges
• High illiteracy
• Even amongst educated – Mostly local language skills only
• Low computer skills , Low internet penetration              Technology Adoption amongst BOP
                                                              segment
                                                              • Highest and fastest penetration : The mobile phone
 eFarm Interface points                                       • Self taught the phone interfaces , usage
 • Voice call centres / BPOs (local language )                • Pay full price for new models , talk time
 • Natural language IVRS ( 2 way – automated
   messages)
 • SMS



                               Voice and the Visually challenged
                                • Enabling voice interface to reach out to the visually disabled
                                • Voice activated systems , JAWS
                                • Employment opportunities as call centre/inbound/outbound agents
Production data
•   Produce name, variety
•   Grade
•   Typical yield at harvest
•   Harvest cycles
•   Cost price at farm gate

Farmer information
•   Name
•   Address
•   Contact number
•   Preferred mode of payment
•   Bank / Post office details
•   Photo
•   Attestation
Tools and calculators
to assist farmers in
determining their
Sale price




                        Click to open ->
Koyambedu
                                        nadu tomato
 (data courtesy : TNAU-INDG market
 information portal)

Where to sell ?
At what price ?
   Head to head comparisons
   across
   Markets
                                        Ottanchatram
   Insight - Support level prices and   nadu tomato
   inflection points

   High / Low variations

   Identifying „hoarding‟ and
   „cartelisation‟
(data courtesy : TNAU-INDG market
                                      Koyambedu : Sambar onion
 information portal)

What is the demand for a
particular product variety in        Koyambedu : Nagar Onion
specific market?

What variety to produce ?

When to harvest ? How much
?
                                     Koyambedu : Tamilnadu Onion
Example using onion in Koyambedu
NENDRUM IN COIMBATORE MARKET                   NENDRUM IN CHENNAI MARKET


60                                              60
50                                              50
40                                              40
                                                30
30                                              20
20                                              10
10                                               0




                                                                                                 30/06/2…
                                                     26/06/2…




                                                                                      29/06/2…
                                                                27/06/2…
                                                                           28/06/2…




                                                                                                            01/07/2…


                                                                                                                                  03/07/2…
                                                                                                                       02/07/2…
 0




                                                           Nendram in Bangalore market
                                               60
Customer : A major chips manufacturer In       50
                                               40
chennai                                        30
                                               20
Problem : Nendran variety availability &       10
quality was poor and price was very high        0

Identified alternate markets for viable bulk
sourcing from alternate markets
Insights into customer‟s procurement
                        patterns and identifying cost saving
                        opportunities

                          Drill down to
                          details




                                                     Highlight
Dashboard summary                                    potential
For senior management                                problems
                                                     and issues
                                                     for
                                                     immediate
                                                     action
Cleaning / Packing

Financial Success                                                                                                                      Social Progress
                                   Quality                                                         Routing
                             Inspection/ Grading
An untapped , niche                                                                                                                    Organizing the large
market with very few                                                                                                Long haul          unorganized agri sector of
organized, entities
                                                                                                                  Transportation
                                                                                                                                       India – bottom of pyramid

Revenue generation                                                                                                                     More income to farmers
through better                                                                                                                         , truck operators and small
optimization, value                      Rural Produce                                                                 Local vendors
                                                                                                                                       vendors owing to profit
addition across the chain
                                        Collection Centres                           Small retailers                                   sharing across the
                                                                                                                                       network
Reduced wastage in
transit = more revenue                  Farmers                                                                                        Support to traditional , eco
                                                                                                            Urban area
                                                                                                         Distribution centre
                                                                                                                                       friendly farm practices
Has potential to jumpstart
                                                                                 Local
                                                                              Distribution                                             , organic farming through
other agri-dependent                                                                                                                   better marketing
ventures
                                                                                                                                       Convert waste to compost
A professional ly                                  Compost/Manure                                               Food Processing
                                                                                                                                       , providing low cost
managed supply chain is                              from waste                                                      units             manure back to farmers.
vital for tapping
international markets                                           Bulk buyers                                                            Revival of agriculture
                                                             (Hotels / Caterers /
                                                                 Retailers)
                                                                                                          Exports                      dependent livelihoods
Potential to scale across                                                                                                              , empowering villagers
                                                             eFarm Common Services
India as core problem is      Planning &                              Call centre /                                    Training &
wide spread                  Coordination
                                                      Research
                                                                     Communication
                                                                                                   Technology
                                                                                                                        Support        Under privileged/Disabled
                                                                                                                                       and urban poor get
„Pull factor‟ from rural                                                                                                               employment opportunities
India for other services
and products
Customers                       Major Suppliers / Farmers              Consultants / Collaborators


•   VGP resorts                        • Green earth, Nilgiris                   • MOP Vaishnava Women’s college
•   Savera hotel                       • Earth trust , Ooty                        – Dept. of Food Science &
                                                                                   technology
•   Veggibazaar.com                    • Raj varadarajan farms , padalam
                                                                                 • Tamilnadu Agri University – Agri
•   NH47 / OVG caterers                • Ecoville – organic produce
                                                                                   Business Incubation
•   Pizzaguy                           • Banana farmers association, TN
                                                                                 • ICRISAT, Hyderabad
•   J’s Organo store, neelangarai      • Satguna Agro , Thanjavur
                                                                                 • PSG College of Tech – Business
•   Voluntary Health Services          • Dept. of Horticulture & Agri              school
    Hospital, taramani                   marketing, TN government
                                                                                 • Hospiexchange
•   Kalyani hospital, Mylapore         • SMILE , Nellore
                                                                                 • RASA – School for Special
•   Venkateshwara hospital             • Nalamagal Trust, Dharapuram               Children
    , Nandanam                         • Future agro, calicut                    • Nandini – Voice for Deprived
•   Bharani hotel, Thiruvanmiyur       • Major Collection regions                • Indian Bank – Microsate II
•   Picnic plaza, Mylapore             •   Around Chennai /kancheepuram          • IFMR
•   Rayar mess , Mylapore              •   Karur, Namakkal                       • Yes Bank / Wagenegan University
•   SS Annamalai staff canteen         •   Thanjavur                             • Microsoft
•   Hamilton bridge area vegetable &   •   Ooty/Mettupalayam                     • SMS integra mobile gateway
    fruit vendors association
                                       •   Krishnagiri, Hosur                    • Silicon house hosting
•   Thiruvanmiyur market traders
    association                        •   Nellore, AP                           • Samanvaya
•   VAREWA                             •   Theni/Cumbum                          • Ichiban consulting
•   ….etc                                                                        • Exnora
                                                                          Tap a wide range of expertise and
         Access to wide range of customer base                            support structure to promote
         From the domestic to export houses                               agribusiness
         across economic pyramid!
                                                                                              As of August 2009
Agri India – LinkedIn Group ( > Link )
•Operational since Jan 2009

    •connecting farmers, buyers , social agencies, agri professionals
    , academicians , press reporters & students

    •Leads on key demands , info about agri expos/conferences , trade
    news , job announcements , new ideas , discussions …

    •Articles on key topics :
         •Agri business & entrepreneurship
         •Organic farming
         •Video clippings on key technologies & processes
         •Buyer‟s guide to various fresh produce (for e.g. detecting carbide
         mangoes, health benefits of keerai , selecting brinjal without
         insects etc)
BOP        Self help groups,       Tiruvalluvar nagar slum
         Segment    Neighborhood            SHGs – Nivedita , MCDS
                    markets , Street        Thiruvanmiyur market vendors         Low
High
                    vendors                 association
         Middle     Mom and Pop stores,     Five star classic
         Income     hotels , Canteens ,      Hospital – VHS
         segment    Caterers                Canteen – SS Annamalai
                                            Restaurants – Punjabi Dawat




                                                                                  Margins
Volume




         High End   Branded stores, High    Cut vegetables – Nilgiris , Surya
         segment    end restaurants ,       Greens
                    Hospitals ,Food         Hotels – Savera , VGP Golden beach
                    processors
         Premium    Organic stores,Export   IFFCO Kisan Agri SEZ(Nellore)
         segment                            Star Agri
Low
                                            Organic – Pasumayagam, nStore,       High
                                            Econut, Sunday Shanty
Multiple buyers AND sellers - Better price discovery; transparency and
Lower Price
                 competitiveness


 Better Price    Demand & supply prediction - long term pricing avoids erratic daily
Predictability   swings

 Farm Fresh      Just in Time delivery – Farm fresh produce reaches buyer as per
  Produce        demands

0% wastage       There exists a market for everything. Left over produce converted to
  targets        manure which is sold back to farmers.
                 Agri-sector employs over 70% of our population directly. Several more
                 are involved indirectly across the supply chain.
Job creation
                 eFarm becomes into a Job creation engine – employing NGOs / SHG
                 women / disabled across the chain
                 ‘Organise the unorganised’ ; Create sustainable ventures across the
Social change
                 chain , Job creation, Promote underprivileged
eFarm won’t ‘OWN’ any of the assets – we ‘CONNECT’ existing elements which are
all independently owned and operated – Low cost of ownership

eFarm doesn’t threaten the livelihood of existing people in this trade. We help to
‘re-train’, ‘re-group’ and ‘re-vitalize’ them to become more professional and
successful in their CURRENT activities

Entrepreneur driven model, riding on top of existing networks

A ‘click & mortar’ operations - both online & offline sales

Delivery: Hub and spoke delivery model (dubbawallahs operations). Low cost
transport (push carts, cycles) in combination with vehicles for widest reach

A common brand called ‘efarm’, which adds value and quality to seller - New to agri
field

Technologies and processes are built to be simple, low cost and with widest reach
across customer base
32/kg     42/kg
    Eg: Ooty Carrots (As of 29th                                            28/kg
    June 2009)                                             24/kg
                                                 22/kg
                                        20/kg                                      End
                                                                                 customer
         5/kg              12/kg                                                   price



          Farmer‟s         Regional       Metro Terminal   Neighbourhood    Kirana     Branded     Premium
          market           mandi          Market           market           stores,    Retailers   Grade
          (In Ooty/        (Mettupala     (Chennai)        (Thiruvanmiyur   Push                   (Export)
          Kothagiri)       yam)                            Chennai)         carts

                                          500 % Price hike
Source : Ooty market traders, Chennai traders, indg.in


    Over 500% Price hike on average to customer , but no value addition
    Changes hands several times: 40-50% is wasted – which adds to the costs
    Prices set at each intermediate point arbitrarily by brokers/agents without
   any planned demand/supply data
    Farmer typically operates at 25% loss , End retailer less than 5% net margin
30/kg
                                                                                                      Export prices
                                                                                                      become
       Eg: Ooty Carrots (As of 29th                              19.75/kg                             viable and
       June 2009)                                                                                     competitive

                                  13.5/kg                                                   End
                                                             End                      customer
                6.5/kg                                                                s see 30%
Farmers are                     Wholesale                  customer                      drop in
   paid 20%                     buyers see                                                prices
higher than                         a 33%
                                                             price
    current                           drop
   prices to
     ensure
profitability
                Farmer              eFarm wholesale            eFarm retail
                                    (at Mylapore               (at eFarm powered outlets
                                    Distribution centre)       and customer deliveries)



                         Reduced from 500% to 200%


       Assumptions : Transport Rs 6000 for 4T truck , Operational expense @30%
       Wastage reduced from 40% to 5% owing to prior demand data , and less intermediaries
       Customers see a 30% drop when compared to prevailing market
       End retailers get better margins , promoting more sales & entrepreneurship in F&V
       eFarm‟s net margin : 30%
Current status :
      •Completed 1.5 years of pilot operations. Current turnover approx 1.5 lakhs per month
      •Current daily volume of about 1 tonne per day , split across customer segments (low, mid, and high value)
      •Over 250 members /partners in the eFarm community

                                                                                   Apr-09
                                                                             Nellore Agri SEZ ,
                                                                         Indian delegation member                    Jun-09
                                                                                                          First eFarm powered store at
    Feb-08                        May 08                     Dec-08
                                                                                                                   Neelangarai
Concept Initiation            Portal launched          TePP Grant from Govt




                     Apr-08               Jul-08     Oct-08            Jan-09             Apr-09             Jul-09

  Jan-08                                                                                                                  Sep-09

                                      Jul 08                                   Mar-09                    May-09
                                 Live Trials begin                      Launched Organic Sales      Press coverage :
                                                                                                    Hindu, TOI, NDTV
Visits to farms
across Tamilnadu




A Roadside
farmers auction in
a village




 Govt. farmers
 direct sales
 market ,
 Theni & Hosur
Discussions with
Agri experts ,
Supply chain
managers, existin
g models
, industry
veterans


(centre)
Forming pilot
focus group with
representative
members across
the chain



Discussions with
NGOs
, Microfinance
, Rural banks &
self help group
members
eFarm
office and
godown at
Mylapore
, Chennai



Upgraded
vending carts
, standardised
weights and
measures




  Distribution
  centre at
  Chennai
  (godown)
Murugesan,
                                                               coconut
                                                              farmer, with
                                                              graded
                                                              coconuts




                                                              Small
                                                              tempos for
                                                              local
                                                              deliveries –
                                                              powered
                                                              by eFarm


Panjali picking up vegetables from our Mylapore centre

                                                 Only a            eFarm
                                                 phone call        mobile
                                                 away … a      store at an
                                                 vegetable        old age
                                                 vendor             home
                                                 enquiring
                                                 prices
Cut
                                                                   vegetables




                                                       Peeled
                                                       onions
                                                     and garlic




                                                       Sorting
                                                       Grading
Over 60% of our staff have some physical or mental            &
disability                                             Natural
                      Agri waste                      Ripening
                      collection                       Of fruits
                      and
                      composting
Innovations in       Tie ups with Agri
                                      agriculture          research and Agri   eFarm office and
                                      retailing            business            godown at
                                                           incubation          Mylapore
                                      Talk at MOP          centres             , Chennai
                                      Vaishnava            (ICRISAT)
                                      womens’s
                                      college, Chennai

                                      IFMR, LIBA, ICFAI,
                                      IBS, TNAU, MOP       Talks in
                                                           management          (centre)
                                      Vaishnava …          schools and         Setting shop -
                                                           institutions        Our home
                                                           (IFMR , IBS)        became the
Field trips to villages and address    Conferences and                         godown & store.
Farmers gathering                      trade shows


                                                                               Upgraded
                                                                               vending carts
                                                                               , standardised
                                                                               weights and
                                                                               measures
Train the
                                         trainer
                                         camps at
                                         farms




                                          Existing
                                          tempo
                                          operator
                                          training
                                          new
                                          recruits
Interns from colleges

                        CarBazaar        Organising
                        Format store     the street
                        For promoting    hawkers
                        Organic
                        produce in the
                        beach
•TATA NEN Hottest startup 2009
nominee
•IIM Kozhikode Whiteknight 2009
Business Plan contest winner
•IIM Ahmedabad Leverage 2009
Showcase shortlisted startup
•In the press
    •Entrepreneur , Sep 09
    •The Hindu magazine‟s Ergo tabloid
    (Mar 2009)
    •Times of India , May 2009
    •NDTV News , June 2009
    •Featured in leading e-zines –
    yourstory.in, startups.in
    •Featured in Tamil press- Kumudham
    , Dinakaran
    •Outlook Money , June 2009
    •JADE , June 2009
•Academic
    •Faculty for Food SCM course, MOP
    Vaishnava college
    •Key note speaker – TNAU conferences
Our Vision
•Bring people together through creative use of technology platforms ('connecting the dots' ) to form socio-economic-webs
•Create successful entrepreneurial, social enterprises which are profitable and sustainable
•Make corporate social responsibility our core business model and differentiator
•Measure success not just in financial growth , but also in the social growth in the areas we serve



                •    Venkata Subramanian Founder & Managing Director: (venky@matchboxsolutions.in )
                          MS (Computer Science), University at Albany, NY , B.Arch , IIT Kharagpur (1995) , India
                          12 years of experience in IT industry , lead key accounts in BFSI for Wipro, Satyam in USA. Very
                          strong expertise in analysis & design of complex systems , portal development , back office
                          operations.
                          Responsible for overall strategy , technology and public relations

                •    Srivalli , Co-Founder, CEO (srivalli@matchboxsolutions.in)
                            MBA , B.Com Taxation
                            8 years experience in Sales, Marketing, & Operations. Has run two start-ups and organised fund
                            raising for NGOs as part of CSR programs.
                            Responsible for operations, business development, finance, administration

                •    Consultants and advisors from leading agricultural universities, management schools, government and
                     industry
                    Combination of different background ,skills and experience to provide creative perspectives to solving key
                    problems in the supply chain area
 Prices are arrived at based on fair negotiations and in advance
 All grades (High/Medium/Low) produce is picked at different rates and
matched with suitable end customer preferences
 By reducing wastage across the chain , farmer gets price from more
quantity sold
 Pick-up is done from farm or from local collection centers , reducing
transportation costs to farmer
 Payments are made in full upon delivery , through transparent means with
proper paper bills
 Data about current demand, price levels, buyer preferences, projected
volumes available for aiding in planning phase
   Branded retailers have Limited market potential – cater to only
    the top 5%
    eFarm has marketing channels across the sector – Slums to
    Exports
   They Try to fix one end of a completely broken supply chain
    eFarm works across the supply chain, and focuses on
    marketing as well as sourcing
   They go for Breadth first approach to scale across geographies
    (in a race to have maximum stores)
    eFarm has a depth first approach , to explore a given
    geography to fullest potential across market segments and
    then grow to adjoining regions
   Require huge Investments
    eFarm essentially doesn’t need to own any assets
Why the government or Private sector
not been able to solve this problem ?

    Farmer‟s Market : A utopian concept but impractical
      Farmers selling direct to buyers through special markets has failed as
       „Selling‟ is a separate specialized activity which requires time , energy
       and additional investment
    Loan waivers and subsidies come with caveats and vested interests
      Corruption, bureacracy and vested interest to push certain schemes
       have added insult to injury to farmers
    Frequent changes in administrators & bureacrats derail most
     projects
Why the government or Private sector
not been able to solve this ? - Continued

    There is no „single‟ entity owning responsibility of entire chain
    The systems are usually closed, vendor specific or too complex
     that predominantly it‟s reach and volume is limited
    They cater only to the top 5% of the income/social bracket , and that
     too in metros. Hence the effects aren‟t felt at the „bottom of the
     pyramid‟.
    In some cases, it has resulted in a David v/s Goliath fight where the
     large retailers are trying to completely by-pass existing traders and
     small time vendors, leading to stiff resistance and negativity
    Big investments made . But Recession has hit retail
Frequently Asked Questions

   So what happens to current middle men ?
       Value added resellers
       Intermediaries – Sorting, Grading, Packing, Transporting
       Storage – Dry / Cold
       Processing – juices, extracts, powders
       Distributors
       Retailers – many formats
   Doesn’t eFarm face any resistance from people/mafia ?
    “Gabbar singh kehkar gaya , Jo dar gayaa , Who Mar Gayaa” –(From a
      Hindi movie – One who is Afraid, is already Dead “
     Only brokers/agents make money
     Highly unceratin trade across entire chain , hence even brokers
      impacted as commissions fluctuate
     Value addition and predictability brings stable revenue and assuarnce
      for everyone
Frequently Asked Questions

   So how is eFarm different from a typical trader or agent ?
Agent                                                         eFarm

Operates on commision basis on volume transacted. Rates       Has worked out long term price plans with farmers /suppliers
vary daily as sourcing is from auction mandis and wholesale   /transporters based on ‘cost price’ model. Prices are more stable
markets.
Has a few sources , usually from a certain radius of his      eFarm is a network of networks. Sourcing is across regions. We
operation. Handles only a few items . Hence need to have      offer wider variety in items, grade. This provides alternatives and
different agents to map out entire order requirement.         choices to manage any scale and any risks.
Predominantly limited education , professional background     eFarm is founded by an IIT alumni with over 12 years of experience
and trust worthiness.                                         in serving Fortune 500 customers worldwide. It is a collaboration of
                                                              professionals across various industries/disciplines – agriculture,
                                                              technology, SCM , Sales & Marketing, Finance, Government and
                                                              Non-profit organizations.
Agents being mostly individuals, have limited exposure.       eFarm is backed by social investors and leading banks and is
Cannot handle financial risks and uncertainties in market.    financially in better position to handle the scale of growth.
Frequently Asked Questions

 But how can someone buy vegetables online ? Thats impossible !
     Its not mandatory to use our web ordering feature. What we advocate is
      „advanced planning and ordering‟ reduces wastage and ensures availability.
      Customers can order through phone .
     All Orders get collated at our backoffice each day.
     Demand Supply prediction – Use statistical tools to „predict‟ demand from
      walkin and adhoc customers
     Current examples – Train, bus, movie tickets
     Gradual change in mindset – From walkin , to phone-in, to paper, to email
      to online forms
Why a social enterprise and not a regular corporate firm ?
    •   Pure corporates – Failing on greed and personal egos
    •   Pure govt. initiatives – Failing on corruption & bureaCRAZY
    •   Pure NGO/NPO – Driven by passion, but lack sustainability and governance
    •   Working for a social cause DOES NOT MEAN we need to be making LOSS
        The middle path : Social + Business goals
Venky
venky@matchboxsolutions.in
044-43577236 , 0-98847 61354

Valli
srivalli@matchboxsolutions.in


11 Loganathan colony
Mylapore , Chennai
Tamilnadu - 600004

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E Farm Presentation Consolidated V1 Pdf

  • 1. eFarm : A Farmer To Consumer Agri Supply Chain Network The Agri-Supply Chain Crisis : Background The eFarm Solution Market Potential & Competitive Landscape Operations Overview Technology Behind eFarm : Overview Benefit to farmers and buyers Timeline Highlights FAQ Presented By : Venkat and Valli Founders , eFarm www.efarm.in HO : 11 Loganathan colony, Mylapore, Chennai , Tamilnadu
  • 2. Harvesting of Terminal markets to Vegetables • Unorganized, unregulated, unprofessional & neighborhood wholesalers unprofitable • Lack of demand/supply data 1 • No reliable sales, distribution, marketing channels • Poor logistics and storage • A Middlemen‟ dominated market 5 •No IT/ERP usage – decisions are adhoc and arbitrary 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
  • 3.  Farmer’s REAL needs – Not money but Marketing !!  They are not even getting break even price – inspite of all subsidies & assistance  There is severe Labour shortage as young adults disinterested in farming activities  Land is plenty – but water is scarce  Rural – Rich (Large farmers) , Urban – Poor (Poor vegetable vendors)  Largescale Migration to city from villages in search of stable jobs  Rapid urbanisation , Loss of prime land  Need to shift from Supply driven to Market driven agriculture
  • 4. Market Scenario Data Value Notes ITC, Nilgiris, Fruits & Vegetables (Total market) 668800 Cr Organised + Unorganised Reliance, More, Big bazaar etc all put Organised segment 8216 Cr < 1.2% of total market together !!! Total Volume of fruits & vegetables 100 Million produced Tonnes India is a World leader in PRODUCTION but still Amount processed 1% World avg ~ 40% IMPORTING our food to Amount exported 1% Not in top 25 in world exporters meet local demand Wastage in transit & handling 40% ~ Rs 40000 Crores lost revenue Even a 1% reduction in wastage will Average per person monthly 68 Rs 11% of monthly expenses on food generate additional expenditure in F&V (Urban) 5 crores in profit to Avg. per person monthly 8 kgs farmers !!! consumption of F&V Over 60% involved in agriculture & related Typical scenario for a metro city in India with 5 Million activities, but contributes less than 20% to population : GDP. Growth rate Y-O-Y is just 2% owing to Daily demand : 1250 tonnes lack of professional management & focus Daily sales : Rs 1.2 Crores Source : IMAGES F&R Research Study , Govt of India , Dept. of Agriculture
  • 5. The Farmer :  Mandi system does not offer stable , sustainable price realization  Organised retailers don’t pick lower grades , have long credit periods  The Lorry drivers :  Lorry booking agents/brokers take 40% of cut. Fluctuating rates and high stress work  The Sellers :  Organized retail : High investment , Poor supply chain, Low volumes  Unorganised retailers : Sabjeewallah/push cart vendors : ▪ Missing link and unsung heroes of the supply chain. (Over 90% of volume retailed here) ▪ No proper benefits / finance / support  The Buyers :  Housewife : Fluctuating costs, Poor quality  Hotels / Food processors : High costs, Unreliable suppliers  Exporters : Poor standards / quality , High logistics cost
  • 6. The eFarm Vision : The Big Picture A shared platform connecting all stakeholders Value added resellers Sorting , Grading , Processing, Packing Storage Warehouses Bulk buyers Exporters Farmers eFarm 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
  • 7. Create a network of farmers, intermediaries, logistics providers, distributors and retailers ‘Organize’ the ‘un-organized’ rural to urban supply chain to create sustainable prices for the rural members of the chain Create a shared sourcing/marketing/distribution/retailing platform which is a combination of offline delivery mechanism with online IT systems : IT based B2B order matching/fulfillment system (e.g. Amazon, eBay) + Low cost-efficient, „Indianised‟ logistics & delivery mechanism (e.g. AMUL, Dubbawallahs) + People driven Direct To Consumer Marketing / Retailing channel (e.g. HLL‟s Shakti, Amway) + Bottom Up Entrepreneur driven model to reach all customer segments (Self help groups, Micro finance) Our goal • Build a nationwide agri-supply chain network platform - Enable fair, efficient & reliable business across the community • Make agriculture self sustaining and curtail erratic fluctuations in price/quality • Generate job opportunities in BOP socio-economic strata in rural and urban areas
  • 8. Price Organised Players •Premium stores Low volumes, Hit by (Organic etc) •F&V focussed stores recession and low (e.g Pazhamudhir Nilayam) profitability •Branded Retailers High (Reliance ,Low etc) More Volume Volume, Premium stores , High •Push price :Sourcing and regular carts High price •Kirana stores supply issues , street vendors Terminal markets Volume Lack of •Regional/Terminal markets standards, transparen cy, trader/broker High dominated Low Volume, Volume, exchanges •Commodity Low Low price (e.g. SAFAL) Price Push carts & Kiranas Local presence to end customer , but high •Village mandi wastage As eFarm connects all players and acts as buyer or eFarm seller in different segments, it will have a wider footprint and better control on end to end profitability
  • 9. eFarm Registers the 1 farmers, transporters and other intermediaries with basic details such as produce type, volume, expected price range etc., Advance amounts are collected from buyers 4 .Payments are made to farmers and - 2 eFarm identifies key buyer segments intermediaries upon delivery. and identifies preliminary for the products. eFarm consolidate the Orders from buyers (B2B) received through phone, email and walk-in to 5 The vegetables are sorted and graded at the make one consolidated demand list eFarm Distribution centers and delivered to respective customer locations (B2B) - 3 eFarm sourcing managers track prices across different areas and feed in the data. The central order matching system determines best source, location and logistics channel The orders are delivered immediately through 6 delivery vans,push carts etc to end for fulfillment. customers Lessons learnt, feed back and data analysis conducted on the order received is shared with 7 the members in the chain. This helps to optimize the operation continuously and increase the value creation across the chain.
  • 10. Cooperatives Hub and Spoke Model For Catering/Hotels Producer Scalability and Organic Growth Corporations Exporters Rural Urban SHGs Collection Forward Logistics ( Fresh Produce) Distribution Centres Centers Food Processors Reverse Logistics ( Manure , Farmer supplies) Bulk buyers Small & mid sized farmers Retailers / Mom & Pop stores … organic growth and expansion
  • 11. •IT Systems usage : NIL •Management team : Illiterate and average age of 55 •Age of company : Over 150 years •Customer Segment : From slumdwellers to crorepathis •Operational efficiency : Six sigma !!! The Mumbai Dubbawallahs !!! •Key success factors : (video English Hindi) •Highly decentralized operations – agile, flexible , scalable •Use of low cost transport medium – trains •Use of human power for last mile delivery – No Fuel related hikes •Strong customer relationship – personal , localised •Simple coding, routing, labelling system – operates even without electricity ! •Delivery excellance – fixed time , professionalism
  • 12. Fix the process first And THEN Implement technology Otherwise will be a failure …..
  • 13. Open source Tools & technologies AgriXML As a dataXchange format
  • 14. Collaboration and B2B trading platform •Content : Daily pricelists, Schedules, Trends , Buyers guides •Order management •Search / Track items •Delivery tracking •Agri specific social networking Backoffice Systems •Customer relationship management •Supply chain management •Mobile/SMS gateway interface •Voice based interface •MIS & Data mart
  • 15. ICT Technology and the BOP segment : Challenges • High illiteracy • Even amongst educated – Mostly local language skills only • Low computer skills , Low internet penetration Technology Adoption amongst BOP segment • Highest and fastest penetration : The mobile phone eFarm Interface points • Self taught the phone interfaces , usage • Voice call centres / BPOs (local language ) • Pay full price for new models , talk time • Natural language IVRS ( 2 way – automated messages) • SMS Voice and the Visually challenged • Enabling voice interface to reach out to the visually disabled • Voice activated systems , JAWS • Employment opportunities as call centre/inbound/outbound agents
  • 16. Production data • Produce name, variety • Grade • Typical yield at harvest • Harvest cycles • Cost price at farm gate Farmer information • Name • Address • Contact number • Preferred mode of payment • Bank / Post office details • Photo • Attestation
  • 17. Tools and calculators to assist farmers in determining their Sale price Click to open ->
  • 18. Koyambedu nadu tomato (data courtesy : TNAU-INDG market information portal) Where to sell ? At what price ? Head to head comparisons across Markets Ottanchatram Insight - Support level prices and nadu tomato inflection points High / Low variations Identifying „hoarding‟ and „cartelisation‟
  • 19. (data courtesy : TNAU-INDG market Koyambedu : Sambar onion information portal) What is the demand for a particular product variety in Koyambedu : Nagar Onion specific market? What variety to produce ? When to harvest ? How much ? Koyambedu : Tamilnadu Onion Example using onion in Koyambedu
  • 20. NENDRUM IN COIMBATORE MARKET NENDRUM IN CHENNAI MARKET 60 60 50 50 40 40 30 30 20 20 10 10 0 30/06/2… 26/06/2… 29/06/2… 27/06/2… 28/06/2… 01/07/2… 03/07/2… 02/07/2… 0 Nendram in Bangalore market 60 Customer : A major chips manufacturer In 50 40 chennai 30 20 Problem : Nendran variety availability & 10 quality was poor and price was very high 0 Identified alternate markets for viable bulk sourcing from alternate markets
  • 21. Insights into customer‟s procurement patterns and identifying cost saving opportunities Drill down to details Highlight Dashboard summary potential For senior management problems and issues for immediate action
  • 22. Cleaning / Packing Financial Success Social Progress Quality Routing Inspection/ Grading An untapped , niche Organizing the large market with very few Long haul unorganized agri sector of organized, entities Transportation India – bottom of pyramid Revenue generation More income to farmers through better , truck operators and small optimization, value Rural Produce Local vendors vendors owing to profit addition across the chain Collection Centres Small retailers sharing across the network Reduced wastage in transit = more revenue Farmers Support to traditional , eco Urban area Distribution centre friendly farm practices Has potential to jumpstart Local Distribution , organic farming through other agri-dependent better marketing ventures Convert waste to compost A professional ly Compost/Manure Food Processing , providing low cost managed supply chain is from waste units manure back to farmers. vital for tapping international markets Bulk buyers Revival of agriculture (Hotels / Caterers / Retailers) Exports dependent livelihoods Potential to scale across , empowering villagers eFarm Common Services India as core problem is Planning & Call centre / Training & wide spread Coordination Research Communication Technology Support Under privileged/Disabled and urban poor get „Pull factor‟ from rural employment opportunities India for other services and products
  • 23. Customers Major Suppliers / Farmers Consultants / Collaborators • VGP resorts • Green earth, Nilgiris • MOP Vaishnava Women’s college • Savera hotel • Earth trust , Ooty – Dept. of Food Science & technology • Veggibazaar.com • Raj varadarajan farms , padalam • Tamilnadu Agri University – Agri • NH47 / OVG caterers • Ecoville – organic produce Business Incubation • Pizzaguy • Banana farmers association, TN • ICRISAT, Hyderabad • J’s Organo store, neelangarai • Satguna Agro , Thanjavur • PSG College of Tech – Business • Voluntary Health Services • Dept. of Horticulture & Agri school Hospital, taramani marketing, TN government • Hospiexchange • Kalyani hospital, Mylapore • SMILE , Nellore • RASA – School for Special • Venkateshwara hospital • Nalamagal Trust, Dharapuram Children , Nandanam • Future agro, calicut • Nandini – Voice for Deprived • Bharani hotel, Thiruvanmiyur • Major Collection regions • Indian Bank – Microsate II • Picnic plaza, Mylapore • Around Chennai /kancheepuram • IFMR • Rayar mess , Mylapore • Karur, Namakkal • Yes Bank / Wagenegan University • SS Annamalai staff canteen • Thanjavur • Microsoft • Hamilton bridge area vegetable & • Ooty/Mettupalayam • SMS integra mobile gateway fruit vendors association • Krishnagiri, Hosur • Silicon house hosting • Thiruvanmiyur market traders association • Nellore, AP • Samanvaya • VAREWA • Theni/Cumbum • Ichiban consulting • ….etc • Exnora Tap a wide range of expertise and Access to wide range of customer base support structure to promote From the domestic to export houses agribusiness across economic pyramid! As of August 2009
  • 24. Agri India – LinkedIn Group ( > Link ) •Operational since Jan 2009 •connecting farmers, buyers , social agencies, agri professionals , academicians , press reporters & students •Leads on key demands , info about agri expos/conferences , trade news , job announcements , new ideas , discussions … •Articles on key topics : •Agri business & entrepreneurship •Organic farming •Video clippings on key technologies & processes •Buyer‟s guide to various fresh produce (for e.g. detecting carbide mangoes, health benefits of keerai , selecting brinjal without insects etc)
  • 25. BOP Self help groups, Tiruvalluvar nagar slum Segment Neighborhood SHGs – Nivedita , MCDS markets , Street Thiruvanmiyur market vendors Low High vendors association Middle Mom and Pop stores, Five star classic Income hotels , Canteens ,  Hospital – VHS segment Caterers Canteen – SS Annamalai Restaurants – Punjabi Dawat Margins Volume High End Branded stores, High Cut vegetables – Nilgiris , Surya segment end restaurants , Greens Hospitals ,Food Hotels – Savera , VGP Golden beach processors Premium Organic stores,Export IFFCO Kisan Agri SEZ(Nellore) segment Star Agri Low Organic – Pasumayagam, nStore, High Econut, Sunday Shanty
  • 26. Multiple buyers AND sellers - Better price discovery; transparency and Lower Price competitiveness Better Price Demand & supply prediction - long term pricing avoids erratic daily Predictability swings Farm Fresh Just in Time delivery – Farm fresh produce reaches buyer as per Produce demands 0% wastage There exists a market for everything. Left over produce converted to targets manure which is sold back to farmers. Agri-sector employs over 70% of our population directly. Several more are involved indirectly across the supply chain. Job creation eFarm becomes into a Job creation engine – employing NGOs / SHG women / disabled across the chain ‘Organise the unorganised’ ; Create sustainable ventures across the Social change chain , Job creation, Promote underprivileged
  • 27. eFarm won’t ‘OWN’ any of the assets – we ‘CONNECT’ existing elements which are all independently owned and operated – Low cost of ownership eFarm doesn’t threaten the livelihood of existing people in this trade. We help to ‘re-train’, ‘re-group’ and ‘re-vitalize’ them to become more professional and successful in their CURRENT activities Entrepreneur driven model, riding on top of existing networks A ‘click & mortar’ operations - both online & offline sales Delivery: Hub and spoke delivery model (dubbawallahs operations). Low cost transport (push carts, cycles) in combination with vehicles for widest reach A common brand called ‘efarm’, which adds value and quality to seller - New to agri field Technologies and processes are built to be simple, low cost and with widest reach across customer base
  • 28. 32/kg 42/kg Eg: Ooty Carrots (As of 29th 28/kg June 2009) 24/kg 22/kg 20/kg End customer 5/kg 12/kg price Farmer‟s Regional Metro Terminal Neighbourhood Kirana Branded Premium market mandi Market market stores, Retailers Grade (In Ooty/ (Mettupala (Chennai) (Thiruvanmiyur Push (Export) Kothagiri) yam) Chennai) carts 500 % Price hike Source : Ooty market traders, Chennai traders, indg.in  Over 500% Price hike on average to customer , but no value addition  Changes hands several times: 40-50% is wasted – which adds to the costs  Prices set at each intermediate point arbitrarily by brokers/agents without any planned demand/supply data  Farmer typically operates at 25% loss , End retailer less than 5% net margin
  • 29. 30/kg Export prices become Eg: Ooty Carrots (As of 29th 19.75/kg viable and June 2009) competitive 13.5/kg End End customer 6.5/kg s see 30% Farmers are Wholesale customer drop in paid 20% buyers see prices higher than a 33% price current drop prices to ensure profitability Farmer eFarm wholesale eFarm retail (at Mylapore (at eFarm powered outlets Distribution centre) and customer deliveries) Reduced from 500% to 200%  Assumptions : Transport Rs 6000 for 4T truck , Operational expense @30%  Wastage reduced from 40% to 5% owing to prior demand data , and less intermediaries  Customers see a 30% drop when compared to prevailing market  End retailers get better margins , promoting more sales & entrepreneurship in F&V  eFarm‟s net margin : 30%
  • 30. Current status : •Completed 1.5 years of pilot operations. Current turnover approx 1.5 lakhs per month •Current daily volume of about 1 tonne per day , split across customer segments (low, mid, and high value) •Over 250 members /partners in the eFarm community Apr-09 Nellore Agri SEZ , Indian delegation member Jun-09 First eFarm powered store at Feb-08 May 08 Dec-08 Neelangarai Concept Initiation Portal launched TePP Grant from Govt Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Jan-08 Sep-09 Jul 08 Mar-09 May-09 Live Trials begin Launched Organic Sales Press coverage : Hindu, TOI, NDTV
  • 31. Visits to farms across Tamilnadu A Roadside farmers auction in a village Govt. farmers direct sales market , Theni & Hosur
  • 32. Discussions with Agri experts , Supply chain managers, existin g models , industry veterans (centre) Forming pilot focus group with representative members across the chain Discussions with NGOs , Microfinance , Rural banks & self help group members
  • 33. eFarm office and godown at Mylapore , Chennai Upgraded vending carts , standardised weights and measures Distribution centre at Chennai (godown)
  • 34. Murugesan, coconut farmer, with graded coconuts Small tempos for local deliveries – powered by eFarm Panjali picking up vegetables from our Mylapore centre Only a eFarm phone call mobile away … a store at an vegetable old age vendor home enquiring prices
  • 35. Cut vegetables Peeled onions and garlic Sorting Grading Over 60% of our staff have some physical or mental & disability Natural Agri waste Ripening collection Of fruits and composting
  • 36. Innovations in Tie ups with Agri agriculture research and Agri eFarm office and retailing business godown at incubation Mylapore Talk at MOP centres , Chennai Vaishnava (ICRISAT) womens’s college, Chennai IFMR, LIBA, ICFAI, IBS, TNAU, MOP Talks in management (centre) Vaishnava … schools and Setting shop - institutions Our home (IFMR , IBS) became the Field trips to villages and address Conferences and godown & store. Farmers gathering trade shows Upgraded vending carts , standardised weights and measures
  • 37. Train the trainer camps at farms Existing tempo operator training new recruits Interns from colleges CarBazaar Organising Format store the street For promoting hawkers Organic produce in the beach
  • 38. •TATA NEN Hottest startup 2009 nominee •IIM Kozhikode Whiteknight 2009 Business Plan contest winner •IIM Ahmedabad Leverage 2009 Showcase shortlisted startup •In the press •Entrepreneur , Sep 09 •The Hindu magazine‟s Ergo tabloid (Mar 2009) •Times of India , May 2009 •NDTV News , June 2009 •Featured in leading e-zines – yourstory.in, startups.in •Featured in Tamil press- Kumudham , Dinakaran •Outlook Money , June 2009 •JADE , June 2009 •Academic •Faculty for Food SCM course, MOP Vaishnava college •Key note speaker – TNAU conferences
  • 39. Our Vision •Bring people together through creative use of technology platforms ('connecting the dots' ) to form socio-economic-webs •Create successful entrepreneurial, social enterprises which are profitable and sustainable •Make corporate social responsibility our core business model and differentiator •Measure success not just in financial growth , but also in the social growth in the areas we serve • Venkata Subramanian Founder & Managing Director: (venky@matchboxsolutions.in ) MS (Computer Science), University at Albany, NY , B.Arch , IIT Kharagpur (1995) , India 12 years of experience in IT industry , lead key accounts in BFSI for Wipro, Satyam in USA. Very strong expertise in analysis & design of complex systems , portal development , back office operations. Responsible for overall strategy , technology and public relations • Srivalli , Co-Founder, CEO (srivalli@matchboxsolutions.in) MBA , B.Com Taxation 8 years experience in Sales, Marketing, & Operations. Has run two start-ups and organised fund raising for NGOs as part of CSR programs. Responsible for operations, business development, finance, administration • Consultants and advisors from leading agricultural universities, management schools, government and industry Combination of different background ,skills and experience to provide creative perspectives to solving key problems in the supply chain area
  • 40.
  • 41.  Prices are arrived at based on fair negotiations and in advance  All grades (High/Medium/Low) produce is picked at different rates and matched with suitable end customer preferences  By reducing wastage across the chain , farmer gets price from more quantity sold  Pick-up is done from farm or from local collection centers , reducing transportation costs to farmer  Payments are made in full upon delivery , through transparent means with proper paper bills  Data about current demand, price levels, buyer preferences, projected volumes available for aiding in planning phase
  • 42. Branded retailers have Limited market potential – cater to only the top 5% eFarm has marketing channels across the sector – Slums to Exports  They Try to fix one end of a completely broken supply chain eFarm works across the supply chain, and focuses on marketing as well as sourcing  They go for Breadth first approach to scale across geographies (in a race to have maximum stores) eFarm has a depth first approach , to explore a given geography to fullest potential across market segments and then grow to adjoining regions  Require huge Investments eFarm essentially doesn’t need to own any assets
  • 43. Why the government or Private sector not been able to solve this problem ?  Farmer‟s Market : A utopian concept but impractical  Farmers selling direct to buyers through special markets has failed as „Selling‟ is a separate specialized activity which requires time , energy and additional investment  Loan waivers and subsidies come with caveats and vested interests  Corruption, bureacracy and vested interest to push certain schemes have added insult to injury to farmers  Frequent changes in administrators & bureacrats derail most projects
  • 44. Why the government or Private sector not been able to solve this ? - Continued  There is no „single‟ entity owning responsibility of entire chain  The systems are usually closed, vendor specific or too complex that predominantly it‟s reach and volume is limited  They cater only to the top 5% of the income/social bracket , and that too in metros. Hence the effects aren‟t felt at the „bottom of the pyramid‟.  In some cases, it has resulted in a David v/s Goliath fight where the large retailers are trying to completely by-pass existing traders and small time vendors, leading to stiff resistance and negativity  Big investments made . But Recession has hit retail
  • 45. Frequently Asked Questions  So what happens to current middle men ?  Value added resellers  Intermediaries – Sorting, Grading, Packing, Transporting  Storage – Dry / Cold  Processing – juices, extracts, powders  Distributors  Retailers – many formats  Doesn’t eFarm face any resistance from people/mafia ? “Gabbar singh kehkar gaya , Jo dar gayaa , Who Mar Gayaa” –(From a Hindi movie – One who is Afraid, is already Dead “  Only brokers/agents make money  Highly unceratin trade across entire chain , hence even brokers impacted as commissions fluctuate  Value addition and predictability brings stable revenue and assuarnce for everyone
  • 46. Frequently Asked Questions So how is eFarm different from a typical trader or agent ? Agent eFarm Operates on commision basis on volume transacted. Rates Has worked out long term price plans with farmers /suppliers vary daily as sourcing is from auction mandis and wholesale /transporters based on ‘cost price’ model. Prices are more stable markets. Has a few sources , usually from a certain radius of his eFarm is a network of networks. Sourcing is across regions. We operation. Handles only a few items . Hence need to have offer wider variety in items, grade. This provides alternatives and different agents to map out entire order requirement. choices to manage any scale and any risks. Predominantly limited education , professional background eFarm is founded by an IIT alumni with over 12 years of experience and trust worthiness. in serving Fortune 500 customers worldwide. It is a collaboration of professionals across various industries/disciplines – agriculture, technology, SCM , Sales & Marketing, Finance, Government and Non-profit organizations. Agents being mostly individuals, have limited exposure. eFarm is backed by social investors and leading banks and is Cannot handle financial risks and uncertainties in market. financially in better position to handle the scale of growth.
  • 47. Frequently Asked Questions  But how can someone buy vegetables online ? Thats impossible !  Its not mandatory to use our web ordering feature. What we advocate is „advanced planning and ordering‟ reduces wastage and ensures availability. Customers can order through phone .  All Orders get collated at our backoffice each day.  Demand Supply prediction – Use statistical tools to „predict‟ demand from walkin and adhoc customers  Current examples – Train, bus, movie tickets  Gradual change in mindset – From walkin , to phone-in, to paper, to email to online forms Why a social enterprise and not a regular corporate firm ? • Pure corporates – Failing on greed and personal egos • Pure govt. initiatives – Failing on corruption & bureaCRAZY • Pure NGO/NPO – Driven by passion, but lack sustainability and governance • Working for a social cause DOES NOT MEAN we need to be making LOSS The middle path : Social + Business goals
  • 48. Venky venky@matchboxsolutions.in 044-43577236 , 0-98847 61354 Valli srivalli@matchboxsolutions.in 11 Loganathan colony Mylapore , Chennai Tamilnadu - 600004