Gram Sampada
A Farmer Franchise Model
www.mandifresh.co.in
Self Sustainable Agro Business (Horticulture)
This document is prepared by:
Mandi Fresh Agro Pvt. Ltd.
"Anytime fresh at your doorstep”
Gram Sampada is unique project which connects farmers to the customers through direct marketing using mandi fresh “online mandi” competency.
DETAIL PROJECT REPORT
To reduce the middle man chain of agriculture produce market by enabling farmers to direct marketing their agri produce.
· 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.
· 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.
· 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).
· 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
· 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 customers doorstep. Our primary customers are small retailers, small hotels, and small restaurants.
· Collecting orders from end consumers through website and directing orders to our authorized retailer partners.
· Creating progressive farmer community (farmers club) to support the project from long term perspective. Assured buy back arrangements, contract farming etc.
· Steady supply of vegetables and fruits will be ensured with the help of Farmer’s club.
· Creating customer community that will support community supported agriculture.
· Integrated one stop solution for customer who looks for fresh organic dairy produce, organic fruits & vegetables, organic grocery, non organic fruits and vegetables.
· Demand based production through community supported agriculture
ABOUT THE GRAM SAMPADA
Gram Sampada is co-operative of farmers group. Gram Sampada along with mandi fresh and government (state and central) aims to effectively and efficiently utilize village resources such as vegetables, fruits, milk, groceries, handicrafts, processed food, man-power and machines to support direct marketing of agri produce.
WHAT’S IN IT FOR FARMER?
· One stop resource center for “Gram Sampada” including linking farmers with the govt. schemes, term loan from bank and subsidy related to production, post harvest management, processing and marketing to assure appropriate returns to “Gram Sampada”
· Brining planning into production and sales cycle to de-risk the uncertainty of agri-business.
· 100% assured sales of Gram Sampada produce through direct marketing channels
· Gram Sampada will have control over the selling price of their produce and there by maximizing
it’s profit.
· Receiving on-demand farming training and consultancy service to encourage farmers to diversify into different types of vegetables and high value crops, to increase farm incomes
· Receiving technology support such as low tunnel, shade net, green house, micro irrigation to increase the farm output.
· Direct employment opportunity for skilled and unskilled person’s especially unemployed youths from the local village
· Opportunity to learn computers, call center management, business knowledge with the help of NGO.
· Cross selling of handicrafts, pickles, processed foods and other village products to consumers
· Gram Sampada farmers will get support on certification such as GAP to ensure branding of Gram Sampada
· Joint crop insurance for the farmers produce.
· Safeguard against crop failure of any individual farmer of the group. Contingency fund can be utilized to support member farmer.
About Mandi Fresh
Mandi Fresh is unique venture to create an "online" virtual mandi where farmers and customers connect with each other. With the project “Gram Sampada”, mandi fresh will create vegetables brand, direct market for farm produce and thus create self-sustainable franchise business. Mandi Fresh plays pivot role in ensuring quality supply, accurate and transparent pricing, provide logistics solution, ensure high standard of service including timely delivery, accurate weighing, billing, packing, grading as per the agreement with the buyer.
Mandi fresh Agro Pvt. Ltd is founded by an Agriculture graduate, Shilu Sinha on 1st Jan-2010 with a vision to create online mandi.
Mandi fresh Agro Pvt. Ltd is founded by an Agriculture graduate, Shilu Sinha on 1st Jan-2010 with a vision to create online mandi.
Key Responsibilities of Mandi Fresh in Gram Sampada
· As a business partner of Gram Sampada, mandi fresh will provide business know how, business processes and their automation, trademark and existing infrastructure in sales & distribution.
· Establishing the Gram Sampada business model, creating forward linkage, backward linkage and establishing the supply chain processes
· Hand holding support till the time Gram Sampada unit is self –sustainable
· Initial management ownership of the entire “Gram Sampada” program till we find the right successor from “Gram Sampada” unit.
Key expectations Government / NGO / Bank
· Arranging timely VC funding, subsidy and soft loans to “Gram Sampada”
· Arrange term loan from bank on affordable interest rate to the “Gram Sampada” for carrying out production, post-harvest management, processing and marketing.
· Provide GAP certificate to farmer’s produce.
· Reimbursement of pre-operating expenses such as (Travel, training, logistics etc.)
· Help in creating detailed project report (DPR) for viability, grants and term loan.
· Providing Human Resource Development (HRD) in horticulture. Train the trainer, on demand training at farm site, demonstration and exhibition in local territory for adoption of high yielding variety of vegetables
OBJECTIVE
· To share 50% of the revenue to the farmers associated with gram sampada during the harvesting season
· To increase the harvesting period of vegetable from 6 month to 10 month ( above 50% )
· To create 30 full time direct employment opportunity for skilled and unskilled person’s especially unemployed youths from the local village. Out of 30 employee 11 would be women employee by the end of the year 2011
· To serve 50 direct customer (small shopkeepers/ vendors) by end of year 2011.
· To establish 5 Gram Sampada unit by the end of the year 2011 in Haryana and Rajasthan.
· To serve directly and indirectly 400 consumer every day.
· To impart 22 weeks of on demand training to farmers associated with Gram Sampada. Training will include crop planning , technology training , business Training,
SCOPE OF EXPANSION PLAN
- Mandi Fresh wants to build “Gram Sampada” brand and expand its operation to pan Delhi NCR. Initial pilot project is planned to start in Gurgaon with vegetables and fruits effective 1st April, 2011.
Gram Sampada will reach to its customer (small retailers and end consumers) through “Direct to Shop” and “Direct to Home Delivery” distribution model.
SALES AND MARKETING PLAN
Competition
· 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.
· 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.
· Competition comes from big player such as Reliance, Food Bazaar etc.
· Mandifresh competitive advantage lies with: - (1) strong mission of creating online mandi (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
· 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.
Target customer segment
· Direct customer:- small retailers, Hotels, Restaurant and caterers
· Indirect customer:- medium and high class educated consumer.
Marketing Mix
· Product- Seasonal fruits and vegetable from periurban region.
· Price- Weekly fixed price for the fruits and vegetables agreed between farmers group and buyers.
· Packaging- Fruits & vegetables certified under GAP will have separate labeling and packing requirement.GAP certified Veggies will be sold to consumer in preordered basket form. These baskets will be packed at farm site and distributed through networked shopkeepers.
· Promotion-
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
Fig: Promotional strategy
PRODUCTION PLAN
Production Strategy
Integrated cultivation concept will be used to grow fruits and vegetables with networked farmers such as farmer’s club.
- Building a vegetables brand by selling certified farmers produce
- Round the year cultivation of vegetables and fruits (offseason and in season)
- Promoting Integrated farming with the introduction of fishery, poultry, dairy, mushroom cultivation, honey bee production.
- Use of Integrated pest management (IPM), integrated nutrient management (INM), and good agriculture practices (GAP) practices.
- Forming farmers association and providing training on integrated farming from government agencies.
- Building a team of agripreneurs and getting financial loan and subsidy support of government.
Production Schedule
Vegetable crop production schedule will be derived using following information
- Distribution requirement planning (DRP):- This constitutes estimated daily demand of seasonal vegetables and storable vegetables and fruits of direct and indirect customers.
Fig :-Sample DRP
APRIL | MAY | JUNE | JULY | Grand Total | |
BANANA RIPE | 1552 | 2180 | 1434 | 1574 | 6740 |
PYAZ | 999 | 1065 | 883 | 827 | 3773 |
AALU | 997 | 1165 | 872 | 553 | 3587 |
TOMATO | 774 | 726 | 488 | 645 | 2634 |
KHEERA | 661 | 426 | 302 | 248 | 1637 |
WATER MELON MD | 453 | 792 | 360 | 1 | 1606 |
KHARBUJA | 280 | 527 | 132 | 939 | |
PAPITA | 260 | 234 | 163 | 261 | 918 |
LAWKI | 255 | 224 | 191 | 209 | 878 |
WATER MELON GREEN | 252 | 214 | 84 | 85 | 635 |
AALU NAYA GRADE B | 225 | 320 | 197 | 117 | 859 |
BHINDI | 207 | 250 | 221 | 220 | 898 |
TOMATO DESI | 189 | 289 | 134 | 91 | 703 |
171 | 0 | 171 | |||
MINT | 170 | 190 | 29 | 4 | 393 |
PALAK | 168 | 124 | 146 | 153 | 591 |
KAKRI | 134 | 84 | 10 | 228 | |
MANGO SAFEDA | 130 | 309 | 89 | 4 | 531 |
ANGOOR | 128 | 8 | 136 | ||
KADDU LAL | 123 | 123 | |||
TORI | 116 | 136 | 105 | 138 | 495 |
BEANS | 115 | 89 | 82 | 110 | 396 |
PATTA | 114 | 87 | 52 | 64 | 317 |
APPLE FUZI | 101 | 101 | 98 | 105 | 405 |
TINDA DESI | 96 | 138 | 118 | 92 | 444 |
MAUSAMBI | 85 | 72 | 34 | 13 | 204 |
NIMBU | 82 | 96 | 80 | 61 | 319 |
SHIMLA MIRCH | 78 | 97 | 73 | 81 | 330 |
BRINJAL BHARTA | 75 | 71 | 65 | 84 | 295 |
HARA DHANIYA | 72 | 72 | 62 | 72 | 278 |
PARVAL | 65 | 59 | 46 | 59 | 229 |
MUSHROOM | 64 | 49 | 42 | 70 | 225 |
ENGLISH GAJAR | 60 | 89 | 78 | 84 | 311 |
ADARAK | 56 | 53 | 38 | 47 | 193 |
· Apart from DRP, Production plan is dependent on crop, planting and yield.
Crop Info
--------------
--------------
Crop NameVariety
Planting info
------------
Maturity Days
By Direct Seed or Transplant
Rows/Bed
Row Spacing
Plant Spacing
Flat size
Weeks to Transplant
Yield Info
-----------
Yield units
Total yield/ft
Estimate value/unit
Planting info
------------
Maturity Days
By Direct Seed or Transplant
Rows/Bed
Row Spacing
Plant Spacing
Flat size
Weeks to Transplant
Yield Info
-----------
Yield units
Total yield/ft
Estimate value/unit
· Timeline :- A timeline is a schedule that shows when certain production and marketing activities will take place. Timelines provide a visual aide to producers for allocating production time and resources. Enterprise
Fig :- Production Timeline
OPERATION PLAN
Sourcing Strategy
Multipoint Sourcing - Multipoint sourcing is planned to meet the demand of different fruits and vegetable, cost, quality and delivery time constraint.
- Pack House would be made at farmers convenient point within the Gram Sampada.
- Farmer produce from Gram Sampada will go to Pack House where washing, sorting, grading, labelling and packaging of veggies will take place
- Storable products bought from the mandi will be stored in the pack house.
- Packing of Direct customer ( shopkeepers, vendors, restaurants, hotels etc) and special packing of Indirect customer ( consumers order from website and call centre) will be done at Packhouse by assembling both seasonal and storable products.
Fig:- Pack House
· Basket of both direct and indirect customer would be loaded into pick up van and reach to individual shop.
· Payment collection would be made by area manager
Fig:- Vegetable Flow Chart
FINANCIAL PLAN
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.
v For 3 years detailed projected financial statements email us on mandi.fresh@gmail.com
v Three years financial projections are shown below
Profit and Loss Statement | FY1112 | FY1213 | FY1314 |
2011 | 2012 | 2013 | |
1 | 2 | 3 | |
Jan -Dec | Jan -Dec | Jan -Dec | |
Revenue | 72,89,635 | 286,32,776 | 898,61,916 |
Cost | 36,31,238 | 142,65,965 | 447,72,709 |
Misc. expenses | 3,79,000 | 10,82,000 | 13,92,000 |
Leadership salary expenses | 4,80,000 | 7,20,000 | 7,20,000 |
Marketing expenses | 1,61,400 | 3,14,400 | 3,14,400 |
Distributor expenses | 15,62,077 | 55,90,571 | 164,41,589 |
Sourcing expenses | 30,000 | 60,000 | 60,000 |
Total expense | 62,43,715 | 220,32,936 | 637,00,698 |
PBT | 10,45,920 | 65,99,840 | 261,61,219 |
Profit Margin | 14% | 23% | 29% |
Percentage of Revenue distribution | |
Farmer's cost | 50% |
Misc. expenses | 5% |
Leadership salary expenses | 7% |
Marketing expenses | 2% |
Distributor expenses | 21% |
Sourcing expenses | 0.4% |
Franchisee Fee | 4% |
Profit Remaining | 10% |
Source of Funding
In order to establish Gram Sampada units Mandi Fresh is seeking funds from
- Banks as term loan
- Government/ NGO (State , National)
Mandi Fresh is seeking approx. 8 Lakhs rupees initially for the training of Farmers and unemployed youths of village to establish and run Gram Sampada center.
Mandi Fresh will also require funds for
§ Capital expenditure (vehicle purchase/lease),
§ Cold storage setup
§ Pack House
§ Vegetables and crates purchase
§ Other expenses (Sales and Marketing expenses)
Management Team
· Shilu Sinha (Founder): An Agriculture graduate and MBA Marketing from Pune University
· 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.
· Prashant Shekhar: MBA Marketing from Pune University
Advisors
· Deepak Rao: Deepak has Engineering and MBA degree in supply chain management. Deepak is based out of USA
· 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.
· Dr Balaraj: Head, Green house cultivation, Pusa Institute, New Delhi
· Manisha Bhalla: Copy editor cum correspondent, Outlook, New Delhi
· 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 AccentureUSA
· 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
· Local NGOs.
For further information please contact:
Shilu Sinha
B.Sc (Agri Eng) & MBA (Marketing)
(Director)
Mandi.fresh@gmail.com
+91-9910035164
+91-9560158973
