EXECUTIVE SUMMARY
www.mandifresh.co.in
B2B Agro Business
This document is prepared by:
Mandi Fresh Agro Pvt. Ltd.
"Anytime fresh at your doorstep”
Mandi fresh is unique venture to create a "online" mandi where farmers and consumers connect with each other. Mandi Fresh plays pivot role in ensuring quality supply, provide logistics solution and ensure high standard of service including timely delivery, accurate weighing, billing, packing, grading as per the agreement
Executive Summary
To reduce the middle man chain of agriculture produce market by building a large
Customers base and create production support through community supported agriculture (contract farming, organic farming and green house cultivation, dairy farming)
v The market size of daily needs of fruits, vegetables & milk 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 venturing 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 been well perceived as “online” mandi where supply demand information can be posted by approved suppliers and credible buyer respectively.
The Concept
v Selling of pre-ordered fruits and vegetables: We aggregate demand by taking advance order through our web portal / call centre and deliver fresh, quality vegetable at unbeatable price to the our customer doorstep. Our primary customers are Small Retailers, Hotels, Restaurants & Caterers & Modern Format Stores.
v Collecting orders from end consumers through website and directing orders to our authorized retailer partners.
v Creating progressive farmer community to support the project from long term perspective. Assured buy back arrangements, contract farming etc.
v Creating customer community that will support community supported agriculture.
v Integrated one stop solution for customer who looks for fresh Organic dairy produce, organic fruits & vegetables, Organic grocery, non organic fruits and vegetables.
v Demand based production through community supported agriculture.
Milestones
v The Promoters have invested 15 Lakhs of initial investment during year Jan-Dec 2010 to fund company capital expenditure and meet operating expenses.
v www.mandifresh.co.in was launched in October of 2010, achieving its objective of creating customer base to the tune of 150 end users, 5 retailers in pilot run. Average sale from website is Rs 2500 per day from end consumers.
v Eco-tourism project started on Feb’2011 with 73 guests in first farm visit.
v Dairy marketing project kicked off on Feb’2011 with 10 cows pilot project.
Strategic Advantages
v Brand Identity: This URL and brand awareness has increased average customer total purchase per month from Rs.700 to Rs.2000
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 One of the main competitors of our business is local and regional mandi. Since we are creating “online” mandi, there would be resistance for small shop retailer to move from physical mandi to “online” mandi.
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 etc.
v Mandifresh competitive advantage lies with: - (1) strong web interface for booking orders from consumers and (2) providing fresh quality fruits, Vegetables and dairy products from self cultivated farm by adoption of Good Agriculture Practices (GAP), integrated pest manage (IPM), protected farming etc so as to produce fruits and vegetable as per international standard. (3) Integrated approach to market our products
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 RevenueSales and Marketing approach
Focus marketing techniques and tools will be used to promote the brand both in direct customers (Direct customers are small retailers, Hotels, Restaurant and caterers) and indirect customer (end user).
Direct Customer marketing approach:
v Provide better price.
v Free shipping on referring a friend.
v Optional, Discounted rate for passing web orders to networked vendors.
v Optional, Discounted SMS billing support for networked vendors.
v Tea & Snacks get together every month with networked vendors.
Indirect Customer marketing approach:
v Farm visit is the face of mandi fresh through which we involve people in community supported agriculture.
v Promote customer to prepay advance for a season which generally lasts for 3-4 months through concept of community supported farming.
v Road show with vegetables costumes
v Display on vendor partner’s 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
Cultivation Approach
Integrated cultivation concept will be used to grow fruits and vegetables with networked farmers.
v Round the year cultivation of vegetables and fruits (offseason and in season)
v Promoting Integrated farming with the introduction of fishery, poultry, dairy, mushroom cultivation, honey bee production.
v Use of Integrated pest management (IPM), integrated nutrient management (INM), and good agriculture practices (GAP) practices.
v Forming farmers association and providing training on integrated farming from government agencies.
v Building a team of agripreneurs and getting financial loan and subsidy support of government.
Sourcing Strategy
v Multipoint Sourcing point that includes Regional/local Mandi, collection centers in village and contract farming is planned to meet the cost, quality and delivery time constraint. v Collection Center would be made at farmers convenient point v While we buy everything from the farmers, grading will be done by farmers.
v Year wise sourcing % from multiple sources are depicted below
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. (Please note that this projections only considered fruits and vegetables sale to contract and non contracted vendors. It does not include eco-tourism, dairy and Organic grocery). For 3 years detailed financial projects email us on mandi.fresh@gmail.com
Profit and Loss Statement | FY1112 | FY1213 | FY1314 |
| 2011 | 2012 | 2013 |
| 1 | 2 | 3 |
| Jan -Dec | Jan -Dec | Jan -Dec |
Revenue | 1377,11,304 | 3333,57,275 | 5986,61,772 |
Cost | 918,07,536 | 2222,38,184 | 3991,07,848 |
Misc. expenses | 60,84,377 | 146,93,909 | 249,47,392 |
Leadership salary expenses | 27,60,000 | 27,60,000 | 27,60,000 |
Marketing expenses | 6,79,200 | 7,58,400 | 8,08,400 |
Distributor expenses | 51,89,147 | 119,58,651 | 210,84,457 |
Sourcing expenses | 4,20,000 | 4,20,000 | 4,20,000 |
Total expense | 1069,40,260 | 2528,29,143 | 4491,28,097 |
PBT | 307,71,044 | 805,28,132 | 1495,33,675 |
Profit Margin | 22% | 24% | 25% |
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 50 small retailers (2) obtain 10 contracts from Hotels, Restaurants and Caterers.
v Mandi Fresh is seeking 50Lakhs Rupees equity finance to be used in following categories.
§ Capital expenditure (vehicle purchase/lease),
§ Salary expense and
§ Other expenses (Sales and Marketing 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 |
Non Organic F & V Non Contracted retailers | 20 | 30 | 45 | 68 | 101 | 111 | 123 | 135 | 148 | 163 | 179 | 197 |
Non Organic F & V Contracted Hotels & Restaurant | 5 | 6 | 7 | 9 | 10 | 11 | 11 | 12 | 13 | 13 | 14 | 15 |
Management Team
v Shilu Sinha (Founder): An Agriculture graduate and MBA Marketing from Pune University. Shilu has 4 years of agriculture marketing and cultivation experience. She has been selected for two months training from The Ministry of Agriculture, Government of India, in association with NABARD. v Shakti Singh: Belongs to National award winning Organic farmer’s family. Shakti is having a vast end to end farming experience right from land preparation to crop planning, harvesting and post harvesting. He is also expert in precision farming, mix crop farming, and dairy. He currently manages 110 acres of farmland in Uttar Pradesh.
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. Prashant has 4 years of retail operation, procurement and sales experience. v Prabhat Kishore: A very aggressive salesmanship. Having 12 years of insurance sales and marketing expertise.
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.
For further information please contact:
Shilu Sinha
B.Sc (Agri Eng) & MBA (Marketing)
(Director)
+91-9910035164
+91-9560158973
