Yes Bank Approaches to Agribusiness.ppt

8/9/2019 Yes Bank Approaches to Agribusiness.ppt

1/22

Presentation on

Approaches to Financing Agribusiness in India

Conference of in-Charges of Priority Sector Advances of

Commercial Banks

Gopi Krishna Swarangi Vice President

Food & Agribusiness Strategic Advisory & Research

26-07-2008


2/22

Knowledge Banking in Food and

Agribusiness sector

YES BANK is focused on being “The Bank for Businesses ofthe Future”

n the ndian conte!t " Food and Agri is an inesca#able$alue dri$er for the econo%& and hence for YES BANK

Agriculture is the backbone of the ndian Econo%&'ontributes ( )*+ to the ,-P

E%#lo&s ( ./+ of the work force

'ontributes ( 0*+ of e!#orts

1owe$er the $alue added in ndian Agriculture is still low as

co%#ared to international standards

Transforming AGRICULTURE to AGRIBUSINESS will lead to a quantum

jump in alue added from a !suppl"#drien$ low#olume situation to a

%demand#drien$ &igalue 'usiness


3/22

Agri & Food

Inputs

Seeds

Fertilizers

Agro-chemicals

Agri-biotech

Irrigation

Farm MachineryPoultry Feed &Equipment

Dairy Feed &Equip

Aqua & FisheryFeed & Equipment

Food Pacaging

Food Ingredients

Prodn. and

Warehousing

Food !orporationo" India

State#arehousing!orporation

!entral

#arehousing!orporation

P$t% #arehouses

!old Storages

Floriculture

reenhouses

Logistics &

Distrbn.

Ports

'ee"er (ransport

!aterers

rading

Edible )il

rain

Spices

Fruits & *eg

Meat+ aqua

!ommodityE,changes

Processing

Pri!ar" Processrain Milling

Edible )il

Dairy

Fruits & *eg

Sugar#igh $a%ueProcessing!on"ectionery

aery

e$erages

Dairy

Meat & PoultryMarine & Fishery

Food etai% &

Food 'er(ice

Super Marets

.yper Marets

Fast Food &e$erage !hains

2ur uni3ue “Knowledge–baning! a##roach to

doing business in the F4A sector5

Nu%erous sub6sectors across the Agri6$alue6chain55right fro% the “Farm gate” to “Food plate”…

A dedicated (ood and Agri'usiness Strategi) Adisor" and Resear)& team consisting of

sector experts has been domiciled within the *eelopment and +nowledge Ban,ing

Division of the bank


4/22

Knowledge Banking hel#s us offer custo%i7ed

#roducts to stakeholders across the $alue chain

"ontract Seed Growers

#ealer

Seed "o$pany

#istributor

Far$er

'ontractual

agree%ent

'redit sales

Preferred

distributors

8ending againstofftake contract

S%%#S

8ending against sto#

sales agree%ent

Ter% lending9 :'

Short ter% lending

against li3uid collateral

'ro# loans

'redit

'redit9

forward

contract

Far$er

holesaler

Village level "A

'andi( arehouse

'iller

:arehouse

;ecei#t

:arehouse

;ecei#t

S#ot %arket

#rice

%#)*+% ,)+


5/22

Need for a 1olistic -e$elo#%ent A##roach

" along the Agri


6/22

Select nitiati$es in the Food and Agribusiness s#ace


7/22

Knowledge ;e#orts


8/22

FASA; – Ke& ,o$ern%ent Assign%ents

)ationa% Institute o*

Agricu%tura%+ar,eting

pti!a% perationa% &

nership +ode% o*

+odern er!ina%

+ar,ets

+inistr" o*

Agricu%ture)ationa% /onsu%tants *or

De(e%oping Fra!eor,

*or 'e%ection o* Pri(ate

nterprises *or 'etting

up o* +odern er!ina%

+ar,ets

1o(t. o* aasthan

and )IA+Feasibi%it" 'tud" *or

'etting up o* +odern

er!ina% +ar,et in

3aipur

1o(t. o* rissa and

)IA+Preparation o* Detai%ed

Proect eports *or

+odern er!ina%

+ar,ets in /uttac, and

4erha!pur

1o(t. o* 5 o*

/handigarh

/onsu%tants *or'e%ection o* Pri(ate


up +odern er!ina%

+ar,et in /handigarh

1o(t. o*

Punab



up +odern er!ina%

+ar,et in Punab

1o(t. o*

+aharashtra



up +odern er!ina%

+ar,et in +u!bai

1o(t. o* rissa and

)IA+



up +odern er!ina%

+ar,et in 'a!ba%pur


9/22


1o(t. o* Andhra

PradeshAssess!ent o*

In*rastructure o* isting

AP+/s and

De(e%op!ent o*

'trateg" *or their

+oderniation

1o(t. o* aasthan

and )IA+Assess!ent o*

In*rastructure o* isting

AP+/s and

De(e%op!ent o*

'trateg" *or their

+oderniation

1o(t. o* West

4enga%Preparation o*

Agricu%tura% +ar,eting 9

$ision 20::; Docu!ent

1o(t. o*

1uaratAd(isor" *or

De(e%op!ent o* +odern

Fruits & $egetab%es

+ar,et in 'urat< 1uarat

IFF/-1reenport

3$/

I!p%e!entation o*Integrated Agro Food

Par, in )e%%ore< Andhra

Pradesh

1o(t. o* 1uarat

+o5 *or De(e%op!ent o*

Integrated Agro FoodPar, on PPP basis

)ationa%

#orticu%ture 4oard

(a%uation o* o%e<'tructure and

/ontinuation o* )ationa%

#orticu%ture 4oard

during =I Fi(e >ear P%an

#AFD

Preparation o* $ision

and /o!prehensi(e4usiness P%an


10/22


APDA

'trea!%ining o* isting

Procedures and

Docu!entation *or

Agricu%tura% Produce

ports

APDA

estructuring o* APDA

in order to /on*ir! to

the Proposed APDA

A!end!ent 4i%% 2007

APDA

'tud" on De%% i!e o*

Agricu%tura% Produce and

+eat Products at De%hi?s

I1I Airport and I/D<

Dadri

APDA

Ad(isors on Fast rac,

De(e%op!ent o* A@s

through PPP in India

1o(ern!ent o*

5ttarancha%

F%oricu%ture Proect onPPP 4asis

+inistr" o*

Agricu%ture Wor%d

4an, ProectBo%e o* /entre and 'tate

'"ste!s in Agricu%ture

under )AIP

5)ID

+ar,et 'tud" *or

'hortening o* 'upp%"/hain and nhance!ent

o* $a%ue *or the Far!ers

in $idharbha<

+aharasthra

/ane & 4a!boo

echno%og" /entre

+ar,et Assess!ent</hanne% 'tud" and

+apping o* /onsu!er

Pre*erence *or 'e%ect

4a!boo Products in )


11/22

FASA; – Ke& 'or#orate Assign%ents

)orth India based

Large /orporate1roup

ntr" 'trateg" *or Fresh

Produce 4usiness and

'ecuring 4ac,ard and

Forard Lin,ages

Leading Indian

/orporateDi(ersi*ication into

rganic Far!ing o*

Fruits & $egetab%es and

ntr" into 4io *ue%s

Leading Indian

/ong%o!erateoping in a 'trategic

Partner *or Distribution

o* Fruits & $egetab%es in

uropean +ar,ets

Leading Indian

/orporatentr" into ura%

etai%ing ith 'pecia%

Attention to Agri Inputs

Leading Food

Ingredients P%a"er

For!u%ating India'trateg"

Leading 'hipping

/ong%o!erate

4usiness Potentia% *or1a!!a Irradiation

App%ication in Food

Industr" in India

Leading Indian

'eed /o!pan"

aising 1roth /apita%*or Fresh Produce and

etai% 4usiness

'outh India based

Proect De(e%oper

I!p%e!entation o*Integrated Agro Food

Par,s in Andhra

Pradesh< a!i%nadu<

Carnata,a< Cera%a<

Pondicherr" and

+aharashtra

Setting up the -irst “state o- the art! )ntegrated Agro0

Food Par in the "ountry in Andhra Pradesh


12/22

>ni3ue first of its kind integration of $ariousagribusiness $alue chain co%#onents

S#atial clustering of different agro6#roductionchains

S#atial co%bination of agro6#rocessing andnon6agro functions ?building@ industrial estateor region

Scale increase in #roduction further enablesindustrial #rocessing A##lication of #rinci#les of industrial ecolog&@ie %utual use of waste and b&6#roducts

'lustering a##roach to attract leading foreignretail chains to anchor and #lan their su##l&chain at and through the Agro Food Parks

Townshi# %odel a##roach to attract ndian

=N's and foreign food #rocessingco%#anies

Tre%endous sco#e for ;ural transfor%ationand rural e%#lo&%ent generation

AGR, F,,#

PARK

R1

"

R1

"

R1

"

R1

"

R1

"

R1"

"onsolidation "entre

"onsu$ers

ntegrated Agro Food Park 6 'once#t

"lustering and 2etworing

provides conte3t -or sustainable innovations


13/22

ntelligent Agrologistic Networks co%bining

'onsolidation 'entres@ Agro#arks and ;T's

METROPOLE

M E T R O P O L E

Consolidation Centre

Agroproduction- and

processingPark

RuralTransformati

on Centre


14/22


15/22

RuralRural

1rans-or$ation1rans-or$ation

"enters"enters

At 'andal +evel

Popln7 8999 0 :9999

Agri "linic

"ollection "enter

'entoring

1raining

Far$ "redit

'icro Finance

Pri$ary .ealth

"enter

"o$$ercial

Rural 'art,--ice Space

S$art "ard

Green Port

Realty

Food &

%ntertain$ent

Village

VillageVillage

Village

Village

Village

'once#t ?contd


16/22

=arket62riented Food Production

'hains

Far$ers

"ollection

Points

"ollection"entres

Pri$aryprocessing

"entres

#istribution"entre

#o$estic$arets

%3port $arets

Retail

'ollection 6


17/22

Far$ers

"ollectionPoints

"ollection"entres

Pri$aryProcessing

"entres

#istribution"entre

#o$estic$arets

%3port $arets

Retail

Pri$ary processing centre7'ooling@ sorting@ grading@ #ackaging and storing

'ollection fro% %a! */ 6 0// k%Backward chain o#ti%isation from farm to for, ?incl seeds and tissuesD far%ers beco%e#referred su##liers

;educe shrinkage b& e!#anding cool chain

ncrease 3ualit& ?#rice

E!tend #otential %arket

=arket62riented Food Production

'hains ?contd


18/22

Far$ers

"ollectionPoints

"ollection"entres

Value Adding"entres

#istribution"entre

#o$estic$arets

%3port $arets

Retail

Add Agro6#roduction to Processing and

Trade

+and0independent agriculture in Agro Food Pars adds opportunities;

$ainly in new $arets


19/22

'ase Stud& 6 ntegrated -air& Far%s "

8inked to AFP

AFP

{

'argin 'oney

Pay$ent o- 'il

Fodder0

+oan0Feed=

Financial Flow

#istribution

"entre

#o$estic

'arets

%3port

'arets

}

Retail

"onsu$ers

'odern

+ivestoc Far$

Far$ers

"attle >

Fodder 'il

Feed

#airy

Product

Product Flow

http://images.google.co.in/imgres?imgurl=http://www.ucc.ie/IDFenzymes/images/equip.jpg&imgrefurl=http://www.ucc.ie/IDFenzymes/history.html&h=286&w=500&sz=28&hl=en&start=4&um=1&tbnid=OodugLRpI2TCCM:&tbnh=74&tbnw=130&prev=/images%3Fq%3Ddairy%2Bprocessing%26um%3D1%26hl%3Den%26sa%3DNhttp://images.google.co.in/imgres?imgurl=http://greetingindia.tripod.com/1000rupees.jpg&imgrefurl=http://greetingindia.tripod.com/indiatoday.html&h=207&w=502&sz=24&hl=en&start=6&um=1&tbnid=jQT5rSJ-3smJHM:&tbnh=54&tbnw=130&prev=/images%3Fq%3Drupees%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.devondale.com.au/foodservice/images/fs_foodservices.jpg&imgrefurl=http://www.devondale.com.au/foodservice/&h=291&w=506&sz=64&hl=en&start=36&um=1&tbnid=CYiXkHK4WtK3cM:&tbnh=75&tbnw=131&prev=/images%3Fq%3DDairy%2BProducts%26start%3D20%26ndsp%3D20%26um%3D1%26hl%3Den%26sa%3DN


20/22

Strategic Partnershi#s

'trategic a%%iance ith

A%terra< a %eading

internationa%

,no%edge institution

and part o*Wageningen

5ni(ersit" esearch

/enter< )ether%ands For i!p%e!entation o*

Integrated Agro Food Par,s

+o5 ith )ationa%

Institute o*

Agricu%tura%

+ar,eting +inistr" o*

Agricu%ture< 1oIB For underta,ing 'trategic

Ad(isor" and /onsu%tanc"

+o5 ith )A4AD

/onsu%tanc" 'er(ices

)A4/)'B

For oint%" carr"ing out

'trategic Ad(isor"assign!ents in the areas

o* Food & Agribusiness<

Agri In*rastructure< etc.

'trategic A%%iance

ith Agricu%ture

Insurance

/orporation o* India

AI/BFor co-de(e%oping

insurance products

suitab%e *or the *ar!ing

co!!unit" across India


21/22

-edicated state le$el initiati$e to enable “#roect de$elo#%ent”Public Pri$ate Finance nitiati$e ?PPF

:ork with state go$ern%ents to accelerate i%#le%entation of #re6a##ro$ed #roects

YES BANK will incur initial de$elo#%ental e!#enses

:e #ro#ose to work with e!ternal consultants for de$elo#ing -P;@finding #ri$ate sector #artners@ de$elo#ing the ca#ital structure andachie$ing financial closure

Assists ,o$ern%ents to anal&se and de$elo# a nu%ber of #roectswithout incurring costs on initial #roect de$elo#%ent

YES BANK will reco$er costs fro% #roect success

Bid Process Assistance is built within the fra%e6workSectors PPF will co$er

Agri6nfrastructure Proects

2ther i%#ortant rural and urban infrastructure #roects

:ater Su##l& and =icro rrigation

'once#tuali7ation to %#le%entation


22/22

T&an,s for "our attention -

Yes Bank Approaches to Agribusiness.ppt

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