EXECUTIVE SUMMARY
www.mandifresh.co.in
Agro Business
This document is prepared by:
Mandi Fresh Agro Pvt. Ltd.
"Anytime fresh at your doorstep”
Mandi fresh is unique venture which connects end consumers directly with the farmers. It is established on the belief that there is an essential need of fresh, quality and rightly priced fruits and vegetables at every doorstep everyday.
Executive Summary
Executive Summary
To reduce the middle man chain of agriculture produce market by building a large
Customer base first (both domestic and international) and then create production support through contract farming, organic farming and green house cultivation.
v The market size of daily needs of fruits & vegetables is immense as every individual needs veggies every day. Mandi fresh is poised to exploit this opportunity by building a strong cost effective supply chain network.
v Vegetable and fruit market is largely unorganized; hence there is no fixed MRP of the product. A large gap exists between the farmer and the consumer, so at every stage the price escalates and if we cut these middlemen chain there is huge profit margin, even if we share some to both ends.
v By entering into production through advance cultivation technique we will ensure fruits & vegetable is of high quality as per international standard (level of insecticide and pesticide).
v www.mandifresh.co.in has attracted the web user segment of the society by creating the first online web store which supply fresh quality fruits and vegetables everyday at reasonable price to retail customers at their convenient time.
The Concept
v Selling of pre-ordered items: We aggregate demand by taking advance order through our web portal / call centre and deliver fresh, quality vegetable at unbeatable price to the consumer’s doorstep. This is being achieved through our superb supply chain system of Veggies Cart (Mandi fresh on Wheel)
v Cost effective wooden cart, excellent IT & Telecom infrastructure network is being used to support demand based procurement from local / regional farmers.
v Demand based production using smart farming technique such as green house cultivation, protective farming, organic farming etc would be done to further lower the cost of fruits and vegetables.
v Spot selling: In order to promote the business, mandifresh also takes spot orders cum delivery from walk-in customers (Mandi Fresh on Wheel).
Milestones
v The Promoters have invested 15 Lakhs of initial investment during year 2010 to fund company capital expenditure and meet operational expenses.
v www.mandifresh.co.in was launched successfully in October of 2010, achieving its objective of creating customer base to the tune of 150 end users, 5 retailers. Average sale from website is Rs 2000 per day.
Strategic Advantages
v Brand Identity: This URL and brand awareness has increased average customer total purchase per month from Rs.700 to Rs.1500
v Proprietary Technology: A fully integrated inventory management, order management, payment processing and billing system provide cost effective and scalable solution. Customers can check price, availability and place order through our website.
v Legal status: Mandi fresh is a registered Pvt. Ltd. company and has filed tax returns FY09 -10
v Zero Income tax: Tax on agriculture produce marketing is 0% as compared to 33% in other sector.
v Customer Loyalty: Once consumer becomes comfortable using mandifresh services, and know its cause to provide right market for the farmer’s produce, it is unlikely that they will move to a competitive service
Competition
v Direct linkage between agriculture production and consumers rarely exist in Delhi NCR. Today’s market is full of traders and relies on retail outlet sales cum home delivery model.
v Competition comes from big player such as Reliance, Food Bazaar and local shops.
v Mandifresh competitive advantage lies with: - (1) strong home or shop delivery distribution network with Veggies Cart; and (2) providing fresh quality fruits and vegetables self cultivated through adoption of Good Agriculture Practices (GAP), integrated pest manage (IPM), protected farming etc so as to produce fruits and vegetable as per international standard.
v Early movers advantage: Mandi Fresh believes that it’s innovative and strong management team can continue to build strategic relationships with the investors, customers and the farmers to capture a large market share in industry before other companies can do so.
Sources of Revenue
v Home delivery of fruits and vegetables to end consumers. (60%)
v Sales of fruits and vegetables to commercial customers (Hotels, Restaurants). (30%)
v Spot selling through veggies cart. (10%)
v Markup increases from 25% to 200% as the volume increases and cultivation starts.
Sales and Marketing approach
Focus marketing techniques and tools will be used to promote the brand.
v Road show with vegetables costumes
v Display on Veggies cart which is spread all over Gurgaon city
v Create awareness through notice board in housing society.
v Tie up with Residential Welfare Association (RWA) of Gurgaon
v Price promotion strategy
v Online marketing techniques to promote the website
v Word of mouth (Refer a friend) marketing
Financial Overview:
v Current sale of mandifresh (from home delivery segment) is Rs 2.0 Lakhs/ month. Fixed Asset is over Rs. 6.0 Lakhs. No of customers served till date is over 1000.
v Future finance projection is depicted below.
FY1112 | FY1213 | FY1314 | |
No of Retail Customers | 3000 | 5940 | 10260 |
No of Commercial Customers | 13 | 48 | 83 |
Avg. Revenue / Retail customer (Rs) | 12000 | 12000 | 12000 |
Avg. Revenue / Commercial customer (Rs) | 706154 | 727500 | 733012 |
Revenue from Retail Customers (Rs) | 36000000 | 71280000 | 123120000 |
Revenue from commercial customers (Rs) | 9180000 | 34920000 | 60840000 |
COGS | 30870000 | 63522000 | 87404400 |
Other Expenses (Rs) | 16432500 | 31188400 | 46833800 |
Profit Before Tax (Rs) | -2122500 | 11489600 | 49721800 |
Tax (Rs) | 0 | 0 | 0 |
Profit After Tax (Rs) | -2122500 | 11489600 | 49721800 |
Funding and Use of Proceeds
v In order to accelerate the growth the company is looking to secure funding via an equity placement to accomplish the following primary goals: (1) acquire 3000 retail customers and (2) obtain 30 commercial customers. The company is seeking 50Lakhs Rupees equity finance to be used in following categories.
§ Veggies purchase,
§ Capital expenditure (cart purchase),
§ Salary expense and
§ Other expenses.
Benchmarks for Growth
Jan-11 | Feb-11 | Mar-11 | Apr-11 | May-11 | Jun-11 | Jul- 11 | Aug-11 | Sep-11 | Oct-11 | Nov-11 | Dec-11 | |
Markups | 1.25 | 1.25 | 1.25 | 1.24 | 1.48 | 1.5 | 1.5 | 1.5 | 1.54 | 1.54 | 1.54 | 1.54 |
No of Employees | 21 | 39 | 58 | 77 | 100 | 102 | 102 | 104 | 104 | 106 | 107 | 108 |
No of veggies cart | 12 | 24 | 36 | 48 | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 60 |
Management Team
v Shilu Sinha (Founder): An Agriculture engineer and MBA Sales & Marketing from Pune University
v Jayant Sinha: B.E Production and MBA in Supply chain from NITIE, Mumbai. Jayant has 9 years of supply chain and IT consulting experience globally. Worked with Accenture USA Consulting.
v Prashant Shekhar: MBA Marketing from Pune University
v Annu Sinha: Graduate and Advance diploma from NIIT. Annu has 6 years of experience in managing human resources, call center support & system support.
Advisors
v Deepak Rao: Deepak has Engineering and MBA degree in supply chain management. Deepak is based out of USA and having 9 years of vast experience in supply chain and IT
v Sutirtha Sinha: Sutirtha has done engineering from IIT Kharagpur and MBA from IIM Kolkata. He has over 11 years of experience in business development and sales.
v Rajeev Ranjan: Rajeev is a production engineer from BIT Sindri. He has 11 years of enriching experience in account relationship management and strategy.
For further information please contact:
Shilu Sinha
(Director)
+91-9910035164
+91-9560158973
