PYRAMID - Gies College of Business · of rice is grown in India yearly Around 25% of . food grown...
Transcript of PYRAMID - Gies College of Business · of rice is grown in India yearly Around 25% of . food grown...
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PYRAMID CONSULTANTS
Improve the food security and quality of life for the people involved in agriculture.
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MBA StudentLavanya
AdvertisingQuinn
Agricultural & Biological Engineering
PratikIndustrial DesignSadie
Mechanical EngineeringBrian
MBA StudentSreekant
Meet the Team
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Global food demand is predicted to increase 70%
by 2050
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110 million tons of rice is grown in India yearly
Around 25% of food grown in India goes to waste
Around 30 million tons of rice are going to waste
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consumption
distribution
processing and packaging
postharvest handling and storage
agricultural production
Post-Harvest Loss Estimates in India
consumption
distribution
processing and packaging
postharvest handling and storage
agricultural production
27%
32%
17%
9%
15%
Focus is on harvest, handling and storage phases.
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Physical loss ranges from 15-25% of crop125 kg per capita per
year is wastedAround 30% of fruits and vegetables cannot be consumed due to loss of quality
Food loss is measured in quality and quantity
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UsersFarmer, transporters and millersLocated in the southern state of Tamil Nadu, India
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Problem Areas
Poor quality bags
Use of hooks
Pests and moisture
Open Drying
Machine threshing
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9
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Filled by farmer
80 kg Transportation 74 kg
jute bag Supply Chain
Storage
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If the use of hooks contributes to
Opportunity
potential savings of
150,000 TONS
of rice in Tamil Nadu
there is a
10%
of the storage/transportation loss
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Farmers don’t understand that they are losing sellable crops
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Design Criteria
Reduce loss during
transportation and storage
Reduce wear and tear due
to hooks
Increase longevity of
sacks
Create health benefits and
monetary savings
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Grain SaverAdding handles to existing jute bags eliminates the need to use a hook, which is the cause for many of the holes.
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Training Program
1) Loss = Loss
2) ! Miller !
3) = =
Solutions for: How to prevent
Kg
The training program will be promoted through newspaper, commercials, local self help groups and ads on grain saver bags.
Training Program
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Current Products
Grain Savings
Cost
Current Jute Sacks
High Quality Sugar Sacks
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PRoduct opportunity
Grain Savings
Cost
Current Jute Sacks
Grain Saver
High Quality Sugar Sacks
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Market engagement strategy
Partner with manufacturers for immediate market entry
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Market engagement strategy
Partner with manufacturers for immediate market entry
Expand awareness across the supply chain
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Market engagement strategy
Partner with manufacturers for immediate market entry
Expand awareness across the supply chain
Increase adoption via word-of-mouth through local communities
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Market engagement strategy
Brochures highlighting the benefits of Jute bag and training program
Partner with manufacturers for immediate market entry
Expand awareness across the supply chain
Increase adoption via word-of-mouth through local communities
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Brochure distributed to local labor union, agricultural groups, merchant groups.
Promotion
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Exchange Model
PYRAMID CONSULTING
LABORERSJUTE BAG MANUFACTURERS
MIDDLE MEN FARMERS
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PYRAMID CONSULTING
LABORERSJUTE BAG MANUFACTURERS
MIDDLE MEN FARMERS
New design solution
Manufacturing partnership
Adoption
Grain savings
Exchange Model
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PYRAMID CONSULTING
LABORERSJUTE BAG MANUFACTURERS
MIDDLE MEN FARMERSBuyer
Seller
Training for usage
Less physical stress
Adoption
Training for loss recognition
Exchange Model
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Local Manufacturing
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Jute production hubs
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Local distribution system
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15% increase in jute inventoryRecycle jute bags
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COMPETITIVE ADVANTAGE
Outsourcing manufacturing
Direct selling to middlemen
Influencing the eco-system by training
the end users
Business Model
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Year 1
Hub town near Chennai
Villages: 4-5Target: 2000 Grain Savers
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Year 2
Half of Tamil Nadu
Target: 800,000 Grain Savers
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Year 3
All of Tamil Nadu
1.2 million Grain Savers
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Pilot Phase
Target: 1 hub town ~ 5 villagesPilot Phase Cost: Rs.160,000 ~ $2700Prototyping: Design, Material, Stitch Pattern, Testing
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Financial Projection
Costs over 5 years: Rs.762,000 ~ $12,700
Break even at year 4
Cumulative Revenue At Year 5 Rs.975,300 ~ $21,700
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TOTAL INVESTMENT: Rs.775,000 ~ $13,000
Investment
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People Profit
Planet
Bottom Line
Efficent usage of resources
Food shortage Cost of foodNutrition
Farmers Merchants Pyramid Consulting
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Thank You
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Detailed Financial
Expense Projections Pilot Year 2 Year 3 Year 4 Year 5 Total
Prototyping Cost $₹ 35,000 $₹ 12,000 $₹ -00 $₹ -00 $₹ -00 $₹ 47,000
Consultancy Office Cost $₹ 15,000 $₹ 16,050 $₹ 17,174 $₹ 18,376 $₹ 19,662 $₹ 86,261
Training Module Development $₹ 8,000 $₹ 9,600 $₹ 11,520 $₹ 29,120
Marketing $₹ 20,000 $₹ 22,000 $₹ 24,200 $₹ 26,620 $₹ 29,282 $₹ 122,102
General & Admin $₹ 7,000 $₹ 7,350 $₹ 7,718 $₹ 8,103 $₹ 8,509 $₹ 38,679
Salary Expenses $₹ 75,000 $₹ 78,750 $₹ 82,688 $₹ 86,822 $₹ 91,163 $₹ 414,422
TOTAL $₹ 160,000 $₹ 145,750 $₹ 143,299 $₹ 139,921 $₹ 148,615 $₹ 737,585
Yearly Projections Year 1 (Pilot ) Year 2 (100 per Village) Year 3 Year 4 Year 5 Total
Units Sold 800,000 1,200,000 1,800,000 2,700,000 ₹ 6,500,000.00
Total Sales Revenue $₹ 140,000 $₹ 14,000,000 $₹ 28,000,000 $₹ 56,000,000 $₹ 70,000,000 ₹ 168,140,000.00
Consultancy Revenue $₹ 14,000 $₹ 1,400,000 $₹ 2,800,000 $₹ 5,600,000 $₹ 7,000,000 ₹ 16,814,000.00