Venkata Subramanian , Founder & MD

eFarmEnabling FArmers to Reach Markets

Innovations in Agri Supply Chain The eFarm Model

Presented at :Agri Business Forum , Krishi 2011 , Nasik

Introductions

Venkata Subramanian• Founder & Managing Director, Matchbox Solutions

& eFarm, Chennai

Brief profile :MS (Computer Science), 2003,University at Albany, NY ,

B.Arch , IIT Kharagpur ,1995 , India

12 years of experience in IT industry in both technology & commercial roles (7+ years in US)

Head of key outsourcing & consulting accounts in Insurance, Capital Markets & Banking

Currently Better known as ….

Hi-Tech Sabjeewallahs ;-)

PROBLEM STATEMENTWHY IS THERE A CRISIS IN INDIAN AGRICULTURE ?

Only a crystal clear question yields a transparent answer

– Zen saying

Pain areas | The Agri Supply Chain Current State : Too Many Steps , Too Little Value Addition

Wholesalers to Retailers

Terminal markets to neighborhood wholesalers

Regional mandi to Terminal markets near

large cities

Harvesting of Vegetables

A local mandi auctioning

Local to Regional mandis for Auction

• Unorganized , unregulated , unprofessional & unprofitable•A Middlemen’ dominated market•Adhoc /Arbitrary Decisions on quality & price

1

2

3

4

5

6

Retailers to Dining Table

7

Loss in transit 40%

Price hike

End to end

> 400%

Reality Check•Farmers cannot do “everything”. They need professional help and organizational support

•Farming needs to become self sustaining and HENCE a business activity•High uncertainty and risks = Very low investor interest•Years of neglect & low esteem = educated youth avoid an agricareer =Labour problems

Need role models and pioneers to build the road to recovery

Pain areas | The Farmer’s ‘REAL’ crisis

Pain areas | Marketing -The missing link ?

Reality Check

No proper customer demand data

India’s agribiz is ‘supply driven’ rather than ‘market driven’

Other industries have differentiated

production from marketing/sales

Agriculture – Farmer handles both roles

Brands have value !! Indian products

though have wider varity and better

taste have not established a stable

brand

The missing FIFTH ‘P’ of marketing in agri context - PERISHABILITY !!

Pain Areas | Customer Spectrum Huge domestic demand, Escalating prices & Unmet needs

Low Income Group

• > 40% in volume

• Buy from neighborhood markets (evening)

• Pay more for less quality

Middle Income Group

• ~ 20% in volume

• Buy from street vendors

• Price + Quality conscious

High Income Group

• ~5% in volume

• Buy from retail chains

• Quality & variety conscious

Hotels & caterers

• ~25% of volume

• Buy from wholesale mandi

Food & Drink processors

• ~5% of volume

• Product specific buyer

• Large volume + fixed price range

Export

• ~1% of volume

• Best quality / specific products only

Organised retailers are crowded in this spaceCompetition high

Efarm targets entire B2B segment and currently untapped areas

Reality Check• No accurate , dynamic data on supply • No market research on customer demand• No data = Wild guesses ?

Lack of Data| No visibility to supply or demand

THE SOLUTION

"We can't solve problems by using the same kind of thinking we used when we created them."

Albert Einstein

“Desi” Problems need ‘Jugaadu’ solutions

Key Innovations

1) Weighing machine = standardise agri business transactions !

Bundles, baskets , bags Kilograms , Counts

2) Simple grading = right quality to right customer!!

Mixed grades S / M / L (Or) excellent / OK /bad

3) Simple technology = widest usage !!!

PCs, Websites Mobile phones , Voice, SMS

Value proposition | Connecting the Dots

Farmers

Rural Produce

Collection Centres

Quality

Inspection/ Grading

Cleaning / Packing

Routing

Long haul

Transportation

Urban area

Distribution centre

Small retailersLocal vendors

Food Processing

units

Exports

Bulk buyers

(Hotels / Caterers /

Retailers)

Compost/Manure

from waste

eFarm Common Services

Planning &

CoordinationResearch

Call centre /

CommunicationTechnology

Training &

Support

Local

Distribution

Every stakeholder is alternately a buyer or seller of agro goods, linked together by a common system. Thus :

Develop Online supply chain Technology backbone with offline distribution mechanisms

Create a network of farmers, intermediaries, logistics providers, distributors and retailers

Provide common support services like marketing , training , technology and agri business consulting

‘Organize’ the ‘un-organized’ rural to urban supply chain

Manage the network to ensure sustainability across the chain

Rural Collection Centres

Collection centres

Chennai Distribution Centre

Distribution centre

Kisan To Jawan : Retail Outlet For Indian Army

Value addition Cut

vegetables

Peeled

onions

and garlic

Agri waste

collection

and

composting

Value added lProcesing team at our Mylapore centre

Natural

Ripening

Of fruits

Training / Workshop

Enabling MORE farmers Reach WIDER Markets..

In Seconds

eFarmDirect

Data Collection

eFarmDirect

Buyers

Transport

Labour

Farmer

Suppliers

Exporters Hotels SubjiwallahsRetailers Exporters

Live Demo

Search Results

Farmer Details

Call Centre / BPO

• Fully Operated By Differently Abled Individuals

• Demo Over LIVE webcam

Thank You

Venkyvenky@efarm.in98847 61354

Vallisrivalli@efarm.in

www.efarm.inwww.efarmdirect.com

Linkedin : AgriIndiaTwitter :venky_efarm