E-Farm Presentation Consolidated V1
E-Farm Presentation Consolidated V1
Network
Over 60% involved in agriculture & related Typical scenario for a metro city in India with 5
activities, but contributes less than 20% to Million population :
GDP. Growth rateY-O-Y is just 2% owing Daily demand : 1250 tonnes
to lack of professional management & Daily sales : Rs 1.2
focus
Source : IMAGES F&R Research Study , Govt of India , Dept. of Crores
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 eFar
Cooperatives
Collection centers m
Kiranas
Self Help
Groups
Hawkers
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
(Organic etc) High
•F&V focussed by recession and
stores (e.g low profitability
Pazhamudhir
Low Volu
•Branded Retailers Nilayam)
Premium stores
(Reliance , More me Volume,
etc) :Sourcing and
, High •Push
price
carts High price •Kirana stores regular supply issues
, street
vendors Terminal markets
Volume Lack of
standards,
•Regional/Terminal
markets
transparen cy,
High trader/broker
Low Volume,
•Commodity Low
dominated
exchanges (e.g.
Volume, Price
SAFAL) Push carts &
Kiranas Local
•Village mandi Low price presence to end
customer , but high
As eFarm connects all players and acts as buyer wastage
or seller in different segments, it will have a wider
eFarm 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
4 buyers
eFarm identifies key buyer .Payments are made to farmers
2 segments and identifies preliminary and intermediaries upon d- elivery.
for the products. eFarm consolidate
the Orders from buyers (B2B)
received through phone, email and The vegetables are sorted and graded at
walk-in to make one consolidated
5
the eFarm Distribution centers and
demand list delivered to respective customer locations
(B2B)
eFar-m sourcing managers track
3
prices across different areas and feed
in the data. The central order
matching system determines best
source, location and logistics The orders are delivered immediately
channel for fulfillment. 6 through delivery vans,push carts etc to end
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.
Catering/Hotels
Cooperatives Hub and Spoke Model
Producer For Scalability and Organic
Corporations
Growth
Exporters
Rural Urban
SHGs Forward Logistics ( Fresh
Collection Distribution
Centres Produce) Centers
Food Processors
Reverse Logistics ( Manure , Farmer supplies)
Bulk buyers
… 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 !!!
Backoffice Systems
•Customer
relationship
management
•Supply chain
management
•Mobile/SMS
gateway interface
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
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
Where to sell ?
At what price ?
Head to head comparisons
across
Markets
Ottanchatram
Insight - Support level prices and nadu tomato
inflection points
Identifying „hoarding‟
and
(data courtesy : TNAU-INDG market Koyambedu : Sambar onion
information portal)
specific market?
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50 50
40 40
30 30
20 20
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Highlight
Dashboard summary potential
For senior management problems
and issues
for
immediate
action
Cleaning / Packing
Potential to scale
Coordination Communication Support
Revival of agriculture
across India as core dependent livelihoods
problem is wide spread , empowering
villagers
„Pull factor‟ from rural
Customers Major Suppliers / Farmers Consultants / Collaborators
Margins
Volum
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.
Job creation Agri-sector employs over 70% of our population directly. Several more
are involved indirectly across the supply chain.
eFarm becomes into a Job creation engine – employing NGOs / SHG
women / disabled across the chain
Social change ‘Organise the unorganised’ ; Create sustainable ventures across the
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
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
1 End
customer
3.5/kg End s see 30%
Farmers are Wholesale
6 customer drop in
paid 20% buyers see prices
higher than .5/kg a price
current 33%
prices to dro
ensure p
profitability
Farmer eFarm wholesale eFarm retail
(at Mylapore (at eFarm powered
Distribution centre) outlets and customer
deliveries)
Jan-08 Sep-09
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
office and
godown at
Mylapore
, Chennai
Upgraded
vending carts
, standardised
weights and
measures
Distribution
centre at
Chennai
(godown)
farmer,
with graded
coconuts
Small
tempos for
local
deliveries –
powered
by eFarm
Only a eFarm
phone call mobile
away … a store at
vegetable an
vendor old age
enquiring home
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 Tie ups with Agri eFarm office
in agriculture research and and godown at
retailing Agri business Mylapore
incubation , Chennai
Talk at MOP centres
Vaishnava (ICRISAT)
womens’s
college, Chennai
(centre)
IFMR, LIBA, ICFAI, Setting shop
Talks in
IBS, TNAU, MOP management -
Vaishnava … schools and Our home
institutions became the
(IFMR , IBS) godown & store.
Field trips to villages and Conferences
address Farmers gathering and 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
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
• Consultants and advisors from leading agricultural universities, management schools, government
and industryof different background ,skills and experience to provide creative perspectives to solving
Combination
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
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
Valli
srivalli@matchboxsolutions.in
11 Loganathan colony
Mylapore , Chennai
Tamilnadu - 600004