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Samridhi business plan

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1 BUSINESS PLAN Samridhi Agri Products Pvt Ltd 5/82 , Vipul Khand, Gomtinagar, Lucknow 226010, Uttar Pradesh, India http://samridhiindia.com/ Confidentiality This business plan is confidential and is the property of Samridhi Agri-Products Pvt. Ltd. Any reproduction or divulgence of its contents without prior written consent of the organization is strictly prohibited.
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Page 1: Samridhi business plan

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BUSINESS PLAN

Samridhi Agri Products Pvt Ltd

5/82 , Vipul Khand, Gomtinagar,

Lucknow 226010, Uttar Pradesh, India

http://samridhiindia.com/

Confidentiality

This business plan is confidential and is the property of Samridhi Agri-Products Pvt. Ltd. Any reproduction or divulgence of its contents without prior written consent of the organization is strictly prohibited.

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Table of contents

Executive Summary.............................................................................................................................................. 3

Background ............................................................................................................................................................. 5

Genesis of Samridhi .............................................................................................................................................. 7

Target Villages ........................................................................................................................................................ 9

About Uttar Pradesh ......................................................................................................................................... 10

Current Operations............................................................................................................................................ 10

The Model ............................................................................................................................................................. 11

Employee Benefits ............................................................................................................................................. 14

Evaluating Qualification & Selection .......................................................................................................... 16

DownstreamMarketing…………………………………………………………………………………………………17

Samridhi Value Chain……………………………………………………………………………………………………18

Support Services ................................................................................................................................................. 18

Consumers ............................................................................................................................................................ 19

Competitive Landscape .................................................................................................................................... 19

Financial Analysis .............................................................................................................................................. 21

Capital Requirement ......................................................................................................................................... 23

Risk Mitigation .................................................................................................................................................... 25

Key Values ............................................................................................................................................................. 30

Partnerships: ....................................................................................................................................................... 31

Management Profiles: ....................................................................................................................................... 32

Board Members .................................................................................................................................................. 33

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Executive Summary

With huge production potential and an insatiable demand for milk unmatched anywhere in the world, India’s dairy industry holds the potential to create large-scale employment, provide stable and sustainable incomes, and build a bridge out of poverty for millions of households in rural communities across the country. Recognizing this, Samridhi Agri-Products Pvt. Ltd. was established in 2009 to create many of those dependable and dignified jobs by filling the gaps in Uttar Pradesh’s rural dairy supply chain.

Through its distributed model, Samridhi procures milk from two distinct producer segments – “ultra poor” households rearing Samridhi-owned livestock, and households who already own dairy animals. By serving both groups, Samridhi can create the largest possible social benefit for asset-less households while ensuring that its facilities are operating at their full capacity.

Women who qualify as “ultra poor” (commonly understood as households earning less than $1.25 a day) are given the option of rearing Samridhi-owned cattle or goats, and personally select the animal(s) that will be kept at the family home. Each woman receives a steady salary of Rs. 600 per month that will cover the cost of rearing the animal in exchange for producing a pre-determined quantity of milk (approximately 50% of potential production for cows and goats). She is also able to either sell the remaining milk to Samridhi at market rates, or keep the milk for her own family’s consumption. For the average ultra poor household, these milk sales can increase their household income by as much as 400%. Furthermore, as the dairy animals reproduce, Samridhi only claims one female calf or twelve calves, leaving the remaining offspring – up to two cows or 12 goats - as the property of the employee. This allows the woman to build a foundation of productive assets over the course of her employment, and positions Samridhi as a trusted buyer of milk as animals produce milk over their lifetimes.

Samridhi also purchases milk from middle or upper poor households, (commonly understood as those earning more than $2 a day) who already own productive dairy animals, at the rates used to purchase surplus milk from ultra poor women. Not only does this ensure that Samridhi facilities are maximizing their capacity, but it also reinforces Samridhi’s position as a trustworthy, beneficial partner in the development of the whole community.

In addition to income security and access to productive assets, Samridhi also makes a series of high quality and affordable services available to both employees and non-employees including skill-building trainings, linkages to high-yielding varieties of livestock, nutritional feed, veterinary services, artificial insemination support, and access to livestock insurance.

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For pricing milk, Samridhi uses industry standard calculations for measuring the quantity milk fat content (FAT) and nonfat milk solids (SNF) to determine its value. Testing is done twice in the collection process, first in the presence of the woman at her village collection center to establish her variable income, and again at a central Bulk Milk Chiller (BMC) facility to verify measures, control quality, and identifies any possible fraud. This ensures transparent pricing at the village level and builds Samridhi’s reputation as a dependable supplier for wholesale buyers.

Samridhi draws its revenues from the margin between the procurement price of milk in rural areas and the selling price to wholesale buyers. Through a single BMC, Samridhi can provide employment to 288 ultra poor households and procures milk from an additional 432 farmers by selling 2400 LPD to urban wholesale buyers. A single BMC can service approximately 24 villages, employing 12 ultra poor women per village and purchasing from an additional 18 farmers per village. This translates to 72,000 litres of milk procured each month, generating revenues over Rs. 17 Lakhs. Against those revenues, Samridhi bears the costs of the BMC’s capital investment, salaries for Samridhi management BMC staff, and salaries to ultra poor employees, payments to non-employee producers, and the cost of maintaining its herd.

Samridhi has also committed itself to rigorously benchmarking and evaluating the progress made out of poverty by its ultra poor employees. Collecting information quarterly, Samridhi evaluates the social impact that increased income is having on employees in areas such as quality of housing, value of household assets, nutritional quality of the family diet, and the children’s access to education. This information will be used by Samridhi to optimize for both social and financial performance, and will ensure that the company’s profitability is in lockstep with social gains made by its employees.

Leading this effort is a core management team that brings together valuable insights and experience from both India’s dairy industry and social sector. Pairing veterans of Amul, the world’s largest milk cooperative, with experienced leaders from India’s microfinance industry, the Samridhi team collectively brings a diverse set of skills and specialized knowledge to the design and management of the organization. Furthermore, each member of the team holds graduate degrees from India’s premier institutes for economic development.

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Background

As urbanization continues to dominate India’s current development agenda, stagnation in

the agricultural sector has left many rural poor households struggling to earn enough to

meet their most basic needs. Between 1991 and 2001, over 7 million1 farmers quit farming,

meaning over 2,000 farmers every day were left suddenly looking for alternative ways to

earn a living. Some of the reasons for the slowdown in agriculture include under-developed

irrigation, severe weather (floods in some years and drought in others), increased

incidence of crop disease, land disputes that have left farmers with small parcels of land on

which it is difficult to cultivate crops, and volatility in market pricing. Another growing

challenge is the problem of agents or middlemen that are extracting a greater proportion of

the profit margins in the rural-to-urban supply chain. Most farmers sell their produce to a

middleman in the village or have to deal with brokers in government-authorized markets

in cities and towns. Because of their dependence on these delivery channels, they are often

exploited and are given low prices for their produce. For the rural poor to avoid being left

further behind, new, localized, and sustainable employment opportunities must be made

available for those who are otherwise unemployed or underemployed.

For India’s rural economy, dairy is a critically important industry. In the wake of uncertain

income from agriculture, small scale farmers and agricultural laborers can earn more

reliable income from dairy farming. Dairy is the largest agricultural contributor to India’s

economy and adds Rs 1.179 billon2 to its GDP. From acute shortage of milk until the 1960s,

India has become the largest producer of milk in the world. In 2006, India reported over

100 million tonnes of milk produced. India’s dairy industry relies heavily on a “crop-

livestock production system,” in which the feed provided to dairy cows is a mixture

comprised of residual output from the crops grown by small-holder farms. These farm

labourers also split their time between tending to crops in the field and managing the care

and feeding of the dairy livestock. The large and growing rural labour force, combined with

the large number of livestock, has helped India’s dairy industry grow to its current size.

1 Online article - http://www.thehindu.com/opinion/columns/sainath/article2484996.ece accessed online:

January 2012

2 Meeta Punjabi, “India: Increasing demand challenges the dairy sector”, part of Smallholder dairy

development - Lessons learned in Asia, Food and Agriculture Organization (FAO) of the United Nations.

Accessed online: January 2012: page 44 ftp://ftp.fao.org/docrep/fao/011/i0588e/i0588e00.pdf

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Despite current production levels, however, India’s dairy industry can and should be far more productive. One of the industry’s biggest challenges is the weak productivity of its livestock. India’s cattle produce 987 kg per lactation, compared to the global average of 2084 kgs per lactation2. Some of the prevailing factors that lead to low productivity are poor quality of domestic cattle breeds, lack of accessible veterinary services, inadequately trained caretakers, and poor quality feed. Any intervention that addresses one or more of these challenges can positively impact rural households by increasing milk yields and therefore, increasing the incomes of dairy farmers.

Goat milk production, too, represents a reservoir of untapped potential. Goat milk is extremely nutritious and has anti-fungal and anti-bacterial properties, and is commonly administered in hospitals across India for recuperating patients as goat milk is easier than cow’s milk to digest. As the marketing of goat milk slowly overcomes common prejudices, the nascent market for this high value commodity is growing. For herders, goats are low cost, are easier to care for, do not require expensive fodder, are more compact and easier to house – all benefits that make goat rearing a more viable and attractive livelihood activity for poorer households. Finally, goat meat is in high demand in the country and there are no social taboos associated with goat slaughtering, as there are with the slaughtering of cows in India. As goats are valued for both their milk and meat, they can potentially contribute a great deal towards the creation of new livelihoods for rural households. As per the 2007 livestock census, India has over 140 million goats. Over the past 10 years, the goat population has increased by 15%. This growth rate is in spite of an annual slaughter rate of 38%. In terms of total volume of goat milk production, India is the world leader producing 4 million metric tonnes in 20083. Even though India is the largest producer of milk, it could soon face a shortage of milk to feed its burgeoning population. According to the National Dairy Development Board (NDDB), India has to grow its milk production by five million tonnes each year (current rate is 2.5 million tonnes/annum) to meet the demand of 180 million tonnes by 20214. The only way India can accomplish this is if more of its farmers are able to own cattle, and increase the productivity of that cattle through effective training of farmers, access to quality feed and availability of veterinary services when critically necessary.

3 Dr. D. Swarup, Annual report 2010-2011, Central institute for research on goats (CIRG). Accessed online:

February 2012: Page 1 http://www.cirg.res.in/downloads/ar1011.pdf

4 Online article - http://articles.timesofindia.indiatimes.com/2010-02-17/vadodara/28149024_1_milk-

production-milk-shortage-higher-import accessed online: February 2012

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Genesis of Samridhi

Sanchetna Financial Services Pvt. Ltd. was founded in 2008 to offer financial services – such

as small, working capital loans to promote livelihoods – to a predominantly rural section of

society that was not being served by the traditional banking sector. After working closely

with rural populations, Sanchetna’s promoters realized that financial services alone could

not sufficiently and sustainably improve livelihoods unless they were combined with other

business support services.

Thus, to create a supportive economic ecosystem in rural areas, Sanchetna’s promoters set

up Samridhi Agri-Products Pvt. Ltd. in 2009. Equipped with the valuable insights gained

from their experience with Sanchetna, combined with prior professional experience in the

dairy sector, milk production was identified as the activity through which Samridhi could

dramatically improve livelihoods in poor areas. As an industry, dairy requires several

support services such as linkages to high-yielding varieties of dairy cattle, nutritional cattle

feed, institutionalization of village milk procurement, timely payments to producers,

artificial insemination support, veterinary training services, livestock insurance, and retail

milk processing, packaging and marketing. Samridhi seeks to build up these various links in

order to effect a well-functioning supply chain – from farmer to retail outlet – for the dairy

industry. In a short span of time, Samridhi’s work as already resulted in greater benefit to

poor, rural households.

Addressing the market need

The dairy industry currently is fragmented on the production end. It is largely driven by

small-holder farmers located in different parts of the country, who together account for a

significant portion of the total milk production, but have little collective bargaining power

over pricing and market value.

A large number of these dairy farmers face numerous challenges in milk production, such

as intermittent electricity to run the cooling system for milk before it is sold. This leads to a

lot of wastage. In order to save the milk, the farmer is forced to sell it to middlemen at

lower than market rates. For most of these farmers, daily milk sale from the few cows they

own is their only source of income. Yet the entire value chain from taking the milk to

market to collecting payments is fraught with inefficiency and unfairness.

While individual farmers struggled to find even some of these support services locally, the

founding team believed that a new enterprise would be well placed to best manage these

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activities and allow farmers to focus on simply producing milk. Samridhi’s goal is to build a

formal supply chain to connect the dairy farmers with the milk processing units, cooling

facilities, and delivery channels to retail outlets. This will increase the predictability of an

assured income for the farmers. Samridhi will also train one woman in each village to be a

para-vet. This will ensure access to a trained professional in case of any health concerns.

The team will also train farmers on effective ways to milk and manage the livestock.

Another critical gap in the industry is access to quality feed for the livestock. Samridhi will

source livestock feed from reputed organizations and make it accessible to the farmers. A

formal market linkage, access to a para-vet, training, and availability of quality feed will

ensure that the livestock is productive and generates stable income for the farmer.

Commitment to the “ultra poor”

Most dairy models across India currently work with farmers who already have some

livestock. Even Gujarat’s cooperative milk marketing federation limited (Amul), the largest

milk producer in the world, provides market linkages only to farmers who already have

cattle. However the poorest of the poor, or the “ultra poor,” can’t afford their own livestock

and are left out of these programs. Samridhi is committed specifically to working with this

segment, and will also ensure its infrastructure is open to other milk producing households.

The ultra poor are typically the poorest households in a village, and cannot to afford to

purchase cows and/or goats as other households can. They live in makeshift housing –

commonly made of mud and thatch – and cobble together odd jobs, such as manual labour,

waste-picking, or begging, to earn an income each day. Samridhi intends to provide these

households with livestock (cow or goat), training on how to take care of the assets and

produce milk on a daily basis, and give them a combination of a fixed and a variable salary to

ensure a steady, predictable income for their efforts.

The team feels strongly that dairy activities not only improve the economic aspects of life in

rural communities, but also promoting gender and social equity. 58% of the total workers

engaged in the dairy sector are women, a much higher rate than the rest of the regional

agricultural sector. Furthermore, the majority of dairy workers belong to socially and

economically disadvantaged communities: Scheduled Tribes (STs), Scheduled Castes

(SCs) and Other Backward Castes (OBCs) constitute 69% of the dairy sector. Increasing the

income from dairy activities would directly benefit those most commonly among the

poorest in any community.

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Target Villages

Samridhi first piloted the dairy model in the Deva block of the Barabanki district of Uttar

Pradesh, and is eyeing future expansion through neighboring blocks. By 2016, Samridhi’s

goal is to reach 28,000 households in over 1100 villages spread across three districts of

Uttar Pradesh. The team hopes to have 48 BMCs installed with a total capacity of over

1,00,000 litres of milk/day.

Deva block is a rural part of Uttar Pradesh, where agriculture, animal husbandry, and bee-

keeping are the main income-generating activities. The primary crops are wheat, paddy

(rice) and maize, and menthol oil is also a widely grown cash crop in the region. The

average income for farmers and dairy producers is very low and, as a result, the district is

home to large numbers of households falling below the national poverty line.

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About Uttar Pradesh

Uttar Pradesh, located in North India, is the most populous state in the country, accounts

for 16.4% of the country’s population, and is the world’s most populous sub-national

entity5. Lucknow, where Samridhi is based, is the capital city. The per capita income of the

state is among the lowest in India and, along with Bihar and Orissa, it lags behind in many

social indicators such as medical facilities, birth rate, death rate, infant mortality rate,

literacy, unemployment, etc.6

The majority of the population is dependent on farming as its main occupation. Poverty

estimates provided by the Planning Commission reveal that Uttar Pradesh has 59 million

people who are below the national poverty line. Government schemes and market reforms

have failed to reach the rural economy in Uttar Pradesh, and the state is home to over 134

million people (21% of India’s poor) who qualify as multi-dimensionally poor on the multi-

dimensional poverty index (MPI)7.

Current Operations

Samridhi began piloting milk procurement in April 2010. The firm currently collects nearly

1,000 litres of cow milk per day from 13 villages. In these areas, Samridhi is purchasing

from a population that did not previously have any control over pricing or reliability of

payments, and consequently did not view dairy as a viable business.

As a way of differentiating from other dairy players and ensuring fair pricing for its

farmers, Samridhi has developed a differential pricing strategy that gives weight to Milk-

Fat content (FAT) and “Solids-Non Fat” (SNF). With testing done on-site, the consideration

and inclusion of these measurements increases pricing transparency for both the

individual farmers and the company, and allows the company to pay higher rates for

individuals producing better quality milk.

Samridhi has set up one model unit that currently serves 12 villages and has the capacity to

collect approximately 2,000 litres per day. Each of these units includes one bulk milk chiller

(BMC), is staffed by a single manager, and employs up to four individuals to administer

5 http://www.tourismofindia.info/uttar-pradesh-tourism/

6 Website of the Govt. of UP - http://upgov.nic.in/upinfo/up_eco.html accessed online - December 2011 7 The Multidimensional Poverty Index (MPI), an Oxford poverty and human development initiative,

complements income poverty measures by reflecting the deprivations that a poor person faces all at once

with respect to education, health and living standard

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village-level milk collection. Currently, Samridhi procures milk from 150 women across 12

villages and pays top of the market rates.

For the individual producers, regular milk sales allow their households to move from

subsistence activities to earning a stable income. Typically, the household already owns 1-3

cows and sells milk daily to a middleman despite habitually delayed and below-market

payments. By selling instead to Samridhi, they receive fair and timely payments that not

only surpass those of the middlemen, but also those provided by Parag, the state dairy

cooperative.

The Model

Samridhi purchases milk from two distinct client segments: Qualifying Ultra Poor

Employees and Private Livestock Producers.

1. Qualifying Ultra Poor Employees (under $1.25 / day)

In these villages, the ultra poor are those who have little to no productive assets and are

among the poorest groups in the country. These are households that are too poor even to

own cows or goats of their own. At present, they cobble together odd jobs such as manual

labour or field work to earn an income. Without a steady income, they live in a state of

constant volatility and are unable to consistently address their most basic food, housing,

health, and education needs. Samridhi has developed a robust selection process to ensure

that it can identify the poorest households in these villages and help them earn a stable

income in an area where they have no other options.

Qualifying Ultra Poor Employees

> Owns dairy animal (cow or goat)

> Not a salaried employee

> Sells milk to Samridhi at will

> Livestock owned by Samridhi (cow or goat)

> Salaried employee

> Produces a set quantity for Samridhi

> Sells excess to Samridhi or another buyer

Private Livestock Producers

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Under this model, each qualifying household rears one-to-two Samridhi-owned cows with

total productivity expectation of eight litres of milk per day, or three-to-five Samridhi-

owned goats with total productive expectation of three-to-five litres of milk per day. As

employees of Samridhi, they receive a guaranteed salary of Rs. 600 per month and are

eligible for bonuses based on the quantity and quality of milk produced.

In addition to this salary, the model also gives families an opportunity to build a stable base

of productive assets: after the contract period initial dairy animal is owned by employee,

the majority of offspring become the property of the individual employee. Not only does

this create social benefits through steady income and a chance to own productive assets for

the individual employees, but it also expands the pool of Private Livestock Producers from

whom Samridhi can purchase milk.

Cow Milk

Women from qualifying households employed by Samridhi rear the Samridhi-owned

cow(s) on their own and pay all related expenses. As long as she provides milk worth Rs.

18,840 each year, she gets a fixed wage of Rs. 7,200 per year. On an average, it costs about

Rs 10,000 per year to maintain a cow. Any milk above this minimum requirement belongs

to the employee and she can decide whom to sell this milk to, though she is strongly

encouraged to sell the milk to Samridhi.

Based on the eight liter productivity expectation, the woman can end up making Rs. 600 /

month as fixed wage and an additional Rs. 1250 / month by selling the milk to the Samridhi

collection center. Furthermore, Samridhi will only take back one female cow calf born to a

Samridhi cow. The original livestock and other offspring will be entirely owned by the ultra

poor employee. Even when a Samridhi livestock is between lactation cycles, and not giving

milk, the company still pays employees Rs. 600 each month, provided the employee is

taking good care of the cow.

The table below shows a year-over-year timeline for expected milk generation from a two-

year-old cow (all amounts in Rs.):

Month Value of Total Production

Samridhi’s Share

Employee’s Share

Samridhi's Margin

Total revenue/cow for Samridhi

Fixed Employee Wages

Total revenue that employee receives

Year 1 33,180 18,840 14,340 4,977 16,617 7,200 21,540

Year 2 33,180 18,840 14,340 4,977 16,617 7,200 21,540

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Assumptions

1. Total Samridhi benefit includes revenue (Rs 23/litre) that Samridhi receives by

selling the mandatory milk (2.75 litres/day) that employees have to give and the

margin (Rs 3/litre) that Samridhi receives from the additional milk (2.09 litres/day)

that Samridhi receives from employees.

2. Total production starts from eight litres per day, and goes on decreasing gradually

with time. A cow typically gives eight litres milk for three months of the year and

gradually reduces over the next six months. During lactation (which lasts three

months), the cow is unproductive. Samridhi continues to pay the fixed salary of Rs

600/month to the employee throughout the year.

3. The figures taken here are an average over a year. However, as cow productivity

declines, Samridhi’s share also declines with it.

4. The table given here assumes a very conservative, worst-case scenario with respect

to reproduction. In the first year, we assume a male calf, and in the second year a

female calf that will hold a value only in the third year. Each employee receives a

cow and a female calf at the beginning. At the end of two years, the calf belongs to

Samridhi while the original cow and remaining calves are owned by the employee.

Goat Milk

As a livelihood option, goat rearing holds tremendous potential to provide a quality income

for the ultra poor. The reproductive cycle of goats is shorter (five months), and goats

generally give birth to multiple kids (two-to-three per gestation). And from a nutritional

perspective, goat milk is the only dairy product that contains beneficial anti-bacterial and

anti-fungal minerals. However, due to social stigma, many have been reluctant to rear goats

as livelihoods and the market for dairy goats is less developed than the market for cattle.

Seeing both the economic and nutritional benefits of goat milk, several organizations are

working to market the virtues of goat milk and increase demand. It is in this work that

Samridhi sees a tremendous opportunity, leading Samridhi to enter into an agreement with

Lucknow-based The Goat Trust to source the necessary livestock and provide critical

support services to its employees.

Under this programme, Samridhi provides three goats to each employee with a total

productivity expectation of 3-5 litres per day. In the first batch, Samridhi is procuring goats

of the Sirohi breed (a large breed that hails from the state of Rajasthan) and the local

breeds from within Uttar Pradesh through The Goat Trust. Given that a goat reproduces

twice in a year, Samridhi leaves the original goat with the employee and takes one offspring

per goat per lactation over a span of two years.

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For goats, the annual expected productivity is shown below:

Month

Value of Total Production

Samridhi’s Share

Employee’s Share

Samridhi's Margin

Total revenue/goat for Samridhi

Revenue by selling goat/Employee

Fixed Employee Wages

Total Employee benefits

Total Samridhi Benefit

Year 1 16,425 11,220 5,205 2,463 9,000 18,000 7,200 23,205 15,666

Year 2 16,425 11,220 5,205 2,463 9,000 18,000 7,200 23,205 15,666

Assumptions

1. Total Samridhi benefit includes revenue (Rs 23/litre) that Samridhi receives by

selling the mandatory milk (0.6 litre/day) that employees have to give and the

margin (Rs 3/litre) that Samridhi receives from the additional milk (0.2 litre/day)

that Samridhi receives from employees.

2. Average total production stands at 3 litres per day.

3. A goat is assumed to be in lactation for eight months in a year. For the four months

when the goat is not producing milk, Samridhi still pays an amount of Rs. 600 per

month to each employee.

4. This is a conservative estimate of the goat’s reproductive capacity. Each goat gives

birth to at least two kids in each lactation. Out of these, Samridhi takes back one kid.

Employee Benefits

The main advantage to the client is that the employee quickly comes to own her own milk-

producing livestock. In case of a cow, the employee owns a milk producing livestock in two

years, and in the case of goats, the woman owns her own dairy animal within one year. The

average cost of rearing one cow or three goats should average out to be around Rs. 600 per

month. The employee gets a fixed payment of Rs. 600/month to cover these costs, and

receives a good market rate for the milk produced over and above the agreed upon limit.

Below is a graphical representation of the value chain:

Once the dairy animal is with the employee, she immediately becomes solely responsible

for rearing the livestock including feed and maintaining its health and ensuring that the

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animal remains productive. When returning the calf, Samridhi expects it to be in the same

condition as it were at the time of assigning to the employee (expecting a certain degree of

natural aging).

Samridhi’s support, however, does not end once the dairy animal is assigned and

transferred to the employee. The grid below explains the division of responsibilities

between different players of Samridhi’s value chain:

Activity Samridhi Employee

Livestock Purchase

Purchases and transfers the animal to the employee Receives livestock from Samridhi

Livestock Maintenance No involvement

Feeds and maintains livestock health

Milk Procurement

Collects milk from the employees and sells it ahead Transfers milk to Samridhi

Risk Mitigation Holds insurance No involvement

Calving – Cows Keeps the original animal after offspring starts giving milk Owns the offspring

Calving – Goats Takes one offspring per lactation Owns the original goats and all remaining offspring

Veterinary Services

Trains one person/village to be a para-vet. Para-vet charges the women for services other than vaccination and de-worming

Has access to Samridhi trained para-vet on pay for service basis

Since rearing of the livestock is a low-skilled job requiring roughly 1-2 hours of work daily,

the Samridhi program allows the household to supplement its income without having a

dramatic impact on lifestyle. This is a home-based activity designed to be minimally

disruptive to households’ current routines. Most of Samridhi’s dairymaid positions are

filled by women; the women, then, can bring in as much income as the male members of the

household. In many cases, this supplemental income will double current income levels. In

addition, the predictability and regularity of the Samridhi income could conceivably help

households quickly move out of extreme poverty and meet its most basic needs.

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The below table summarizes the key features of both the cow and goat dairy models:

Snapshot of cow and goat model

Model Cost/animal (US $)

Employee pay-out

Assets owned by employee at the end of two years

Pros Cons

Cow 400 Fixed pay: Rs 600 Variable pay: Rs 1250

Original cow and at least one female calf

• Asset ownership – Original cow belongs to the member

• Social empowerment: higher status associated with cow ownership

• Zero value of male calves

• Higher maintenance costs

Goat 100 Fixed pay: Rs 600 Variable pay: Rs 500

Original three goats and 12-24 calves

• Asset ownership – Original goats belong to the member. She also receives 8-10 calves over two years

• Easy to maintain

• High reproductive rate

• Potential market for goat milk in cities

• Nascent retail market for goat milk

• Limited insurers

• High mortality rate among goats

Targeting and Selection

To measure the income levels and suitability for the programme, Samridhi visits the home

of potential employees to evaluate each household using estimates of incomes and

expenditures, a proprietary housing index, education levels, utilization of government

programmes,8 and the Grameen Foundation’s Progress Out of Poverty Index™ (PPI).

Generally, qualifying households:

• Have an average monthly income of Rs. 1500 to 2000 (among all members)

• Work in manual or farm labour

• Reside in ‘kachha’ houses made of mud or thatch, seldom have access to private

source of water, and have no access to sanitary facilities

• Have on an average between four and six children who are enrolled but not

attending school regularly

• Are enrolled in ration or housing subsidy schemes

• Have a PPI™ score less than 18, indicating insufficient productive and household

assets to meet a family’s needs

8 The PPI™ is used for internal operational purposes only.

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2. Private Livestock Producers (earning between $2 - $3 / day)

More than 40% of Indian farming households fall in this income band, with roughly two-

thirds owning less than one hectare of land. It is quite common for these households to be

engaged in milk production as regular milk sales allow them to move from subsistence

farming to earning a commodity-based income. Typically, these households own one-to-

three cows and sell milk to a middleman every day, but as described earlier, they are

constantly subject to delayed and below-the-market payments for their work. Some of

these households also own a few goats, however, the lack of a market means that these

people are unable to generate an income from goat milk production.

Samridhi provides these households with an alternative, offering accurate and timely

payments for their product. They are paid predictable amounts on a weekly schedule and

at transparent prices consistent with Samridhi’s FAT/ SNF pricing scheme.

The Downstream market – Milk processing and retailing

Samridhi sells the milk collected from both ultra poor employees and private livestock

producers to Devashish dairy, which in turn sells milk and milk products in retail outlets

under the brand of ‘Shuddha’.

Devashish has a plant capacity of around 40,000 litres per day. Devashish does not itself

collect milk from the villages and depends on aggregators in villages for procurement.

Samridhi is the only permanent customer that they have. This gives Samridhi the leverage

to bargain prices with Devashish. Currently Samridhi delivers the milk on a daily basis to

Devashish’s processing plant in Lucknow. Devashish pays Samridhi a commission of Rs

3/litre for the milk that Samridhi procures. Going forward, Samridhi would prefer to work

with organizations that collect milk directly from Samridhi’s BMC. This would eliminate the

transportation costs and the risk of milk getting spoilt in transit.

To be attractive to other milk processors, Samridhi needs to consistently deliver 2,000

litres/day. At capacity, each BMC can store up to 3,200 litres of milk every day. At that

scale, Samridhi can also demand a better commission for the milk. Given Devashish’s

capacity, Samridhi can deliver milk from up to eight BMCs before the capacity at Devashish

gets saturated. At that scale, Samridhi will need to partner with other dairies.

Samridhi is currently negotiating with other dairies and is hopeful of establishing a series

of purchasing partnerships by the early fall of 2012. Some of these brands include Gyaan,

Mother Dairy, and Namaste India: all with a plant capacity of over 1, 00,000 litres per day.

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18

Snapshot of Samridhi’s value chain

In a nutshell, after ultra poor and non-ultra poor producers supply milk to Samridhi’s field

officers, the following diagram illustrates the process of how the milk reaches the

downstream market:

Support Services

Samridhi also provides extension services to its ultra poor and non-ultra poor dairy

producers, working with organizations to make available professional veterinary services

such as artificial insemination, vaccination and de-worming of livestock. Samridhi has

already partnered with Indian Immunological Ltd., a wholly owned subsidiary of National

Dairy Development Board, for extension services.

1. Cattle Insurance - The cattle will be insured before being transferred to the

employee. For this purpose, Samridhi has contracted with TATA AIG, to provide

cattle insurance for its herd. In case of an animal death, the employee does not bear

any additional expenses or responsibility, and the claim will be given to the

company. There are very few organizations providing goat insurance. Given the low

cost of goats, it is not sustainable for commercial insurance companies. Samridhi is

talking to organizations that provide community based insurance for goats.

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19

2. Network of “Pashu Sakhi” - For regular check-ups on the animal, Samridhi will train a

woman from each village as a para-veterinarian (Pashu Sakhi in the local dialect) to

provide basic veterinary services in that particular village. The Pashu Sakhi will be

trained and given access to basic medicines at low costs to heal basic ailments. She

can charge a fixed fee on these medicines while selling them as needed, providing an

additional channel of income to the Pashu Sakhi.

3. Cattle Feed - Samridhi also sells cattle feed to employees at competitive rates. The

cattle feed is delivered at their doorstep, saving travel and time costs. Given the

dietary needs of goats, specialty feed is not required.

4. De-Worming Tablets and Vaccination for livestock - Samridhi provides de-worming

tablets and vaccinations for all livestock owned by the company, and makes these

same services available to Private Livestock Producers. Samridhi educates all

producers about the importance of these tablets, and how they are supposed to be

consumed by the livestock

5. Artificial Insemination - Samridhi will assist the employees with reproductive

services for their livestock. Although the expenses will be borne by the employee,

veterinary services will be provided to facilitate the breeding process. A safe and

healthy practice of artificial insemination is important in part to ensure a steady

supply of quality milk and in part to ensure ultra poor households are recipients of

healthy and productive calves.

Consumers

Competitive Landscape

The following is a snapshot of the Samridhi’s positioning vis-a-vis other market players:

Parag (State Milk

Co-Operative)

Private Retail

Milk Companies

Informal Middle

Men

Samridhi

Outreach Villages on the

connecting roads

Towns Interior Villages Interior Villages

Milk Rate Basis FAT and CLR FAT Only (Favours

Buffalo Milk)

No Scientific Basis FAT and CLR

(about Rs. 1/Ltr

more than that of

Parag)

Payment Monthly Basis Monthly Basis Erratic Weekly

Point of Contact for

the farmer

Co-ordinator Milk Middleman Farmer Farmer

Financial Not Available Not Available Available Available

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20

Assistance for

cattle/feed

Livestock

Insurance

Not Available Not Available Not Available Available

Veterinary Services Available but

erratic

Not Available Not Available Available

Competitive Advantage

Steady Production and Purchasing

Regional milk production currently follows a seasonal pattern with many small dairies

operating only during the flush period. Since none of these dairies currently pay

competitive rates to producers or provide any support services to improve cattle

productivity, farmers have very little incentive to produce more milk. Furthermore, the

long marriage season during periods of lower production guarantees a volatile market for

producers and buyers. In this market, Samridhi’s professional approach will distinguish the

organization as the preferred purchaser.

Cows reach their maximum productivity in the winter season. Ideally, productivity begins

to rise from July-August and goes on to reach its peak level in December-January. Milk

production fluctuates as much as 40% between peak and dry seasons.

For goats, the seasonal pattern is relatively less variable. They produce maximum in the

summer season, and stay dry for approximately a month before delivering a kid, which

could be at a regular gap of seven months.

The biggest advantage with Samridhi is the steady and predictable rates that farmers will

receive. Even during the lactation period when the cow is unproductive, Samridhi will

continue to pay the fixed salary of Rs 600/month to its employees.

Few Competitors

The state dairy cooperative (Parag) is the only player in the market with a reasonable

presence in areas surrounding Lucknow, covering villages which are situated on the main

roads but leaving out large swaths of surrounding areas and the poorest, interior villages.

Samridhi is currently establishing trusted relationships with villages that have been

overlooked by other players and is setting pricing at more favourable levels.

Brand Familiarity

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21

Having a symbiotic relationship with Sanchetna - which is already providing the farmers

with capital and insurance services - Samridhi is able to provide complementary services

where the microfinance institution already has a presence. A large number of Sanchetna

clients have cattle. When Samridhi started providing cattle feed, it was very well received

by the clients of Sanchetna for their cattle. Through research and discussion with multiple

players, Samridhi ensures that it only procures cattle from quality organizations. Samridhi

provides the feed at the doorstep of the farmer. Otherwise these farmers have to travel to

Barabanki to procure the feed. This saves them the time, cost of transportation, and the

opportunity cost of a day’s labour. Another advantage is that Samridhi gets feed at a lower

price due to larger scale and passes those benefits onto the farmer.

Professionalism

The promoters have put a lot of emphasis on direct and regular touch with the milk

producers, economic empowerment of milk producers, transparency in pricing, respectful

customer service and high standards of professionalism. Through this professionalism,

Samridhi is building a strong brand reputation and is increasingly viewed by individual

producers as the preferred purchaser.

Financial Analysis

The Samridhi model is based on the margin between the procurement price of milk in rural

areas and the selling price to wholesale buyers.

Samridhi will procure milk from two sets of village-level producers:

1. Private Livestock Producers: Population already owning one or more dairy animals

with variable rates paid based on milk volume and quality.

2. Qualifying Ultra Poor Employees: Population living below poverty line that own no

productive assets and have been furnished with a Samridhi dairy animal through

their employment. These employees will be paid a set salary of Rs. 600 per month

plus variable rates paid based on milk volume and quality.

Other assumptions are as follows:

1. Price of milk will be determined on the basis of FAT and SNF

2. Margin between procurement and selling price is Rs. 3 per litre. This is same for

both cows and goats

3. Fixed cost of maintaining Bulk Milk Cooler for one month including salaries,

transportation and utilities is Rs. 86,000 In case of Samridhi’s cattle being reared by

Page 22: Samridhi business plan

22

employees, 2.75 litres per day per employee will be transferred to Samridhi to

satisfy production requirements including in conditions of employment. Variable

pricing will be in effect for every milliliter beyond the 2.75 litres per day

requirement.

Benefits of scale

As Samridhi continues to scale and adds new BMC’s, there are certain costs whose per unit

cost decreases with the increase in the number of units. Some of these include:

• Cost of cattle – Once Samridhi assures a steady supply of orders for livestock, the

organization can demand a better rate from the agents and/or cattle farms

• Cattle feed – Even at one BMC level, Samridhi will work with over 700 farmers. A

majority of these people would require feed for their livestock. At this scale,

Samridhi can get better rates from the manufacturers

• Head office overheads – Samridhi does not anticipate needing to add staff at the

head office level as it increases the capacity of one BMC and continues to add BMCs

to its operations. As such, the cost of existing staff can be spread across the

expanding capacity.

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23

5-Year Financial Projections9

Income Statement 2012-13 2013-14 2014-15 2015-16 2016-17

Total Revenue from Cow Milk 34831591 114053136 276917148 556733952 975250968

Total Revenue from Goat Milk 7013160 23448960 56933280 114462720 200508480

Non-operating Income 432200 1416000 3438000 6912000 12108000

Total Income 42276951 138918096 337288428 678108672 1187867448

Milk Price Paid to UP Women 5468232 18283392 44391456 89247744 156338496

Milk price paid to Non-UP Women 18921600 61171200 148521600 298598400 523065600

Field Staff Salary 5549600 18325600 44098800 88615200 154360800

BMC Cost 812000 2920000 6702000 13584000 22512000

Head Office Overheads 1913850 2348600 2592600 3036600 3612678

Interest Expenses 123750 0 0 0 0

Depreciation 192000 600000 1332000 2664000 4392000

Total Expenses 32981032 103648792 247638456 495745944 864281574

Surplus 9295919 35269304 89649972 182362728 323585874

Tax Payable 3101119 11765840 29907231 60836206 107948248

Reatined Earnings 6194800 23503464 59742741 121526522 215637626

Balance Sheet 2012-13 2013-14 2014-15 2015-16 2015-17

Assets

Cash and

Equivalent

18854,68

10783,33

194746,74

463083,96

1496404,22

Fixed Assets

56000,00

153600,00

300000,00

592800,00

872400,00

Accumulated

Deprec.

1920,00

7920,00

21240,00

47880,00

91800,00

Net Fixed Assets

54080,00

145680,00

278760,00

544920,00

780600,00

Livestock

153096,00

473352,00

953736,00

1914504,00

2801880,00

Total Assets

226030,68

629815,33

1427242,74

2922507,96

5078884,22

Liability - - - - -

Term Loan

1250,00 - - - -

Equity

213456,81

592404,48

1350720,19

2767761,99

4852598,92

9 Details in accompanying Excel financial model

Page 24: Samridhi business plan

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Retained Earnings

11323,88

37410,84

76522,55

154745,97

226285,30

Liabilities + Equity

226030,68

629815,33

1427242,74

2922507,96

5078884,22

(INR) 2012-13 2013-14 2014-15 2015-16 2016-17

Cash Flow

Opening Balance

72,68

18854,68

10783,33

194746,74

463083,96

Total Revenue from Cow Milk

348315,91

1140531,36

2769171,48

5567339,52

9752509,68

Total Revenue from Goat Milk

70131,60

234489,60

569332,80

1144627,20

2005084,80

Other Income

4322,00

14160,00

34380,00

69120,00

121080,00

Capital Infusion

135000,00

170000,00

200000,00

280000,00 -

Term Loan

15000,00 - - - -

Total Inflow

572842,19

1578035,64

3583667,61

7255833,46

12341758,44

Milk Price Paid to UP Women

54682,32

182833,92

443914,56

892477,44

1563384,96

Milk Price Paid to Non-UP Women

189216,00

611712,00

1485216,00

2985984,00

5230656,00

Fixed Assets

39000,00

97600,00

146400,00

292800,00

279600,00

Livestock

142336,00

320256,00

480384,00

960768,00

887376,00

Field Staff Salary

55496,00

183256,00

440988,00

886152,00

1543608,00

BMC Cost

8120,00

29200,00

67020,00

135840,00

225120,00

Head Office Overheads

19138,50

23486,00

25926,00

30366,00

36126,78

Loan Repayment

13750,00

1250,00 - - -

Interest Expenses

1237,50 - - - -

Tax Paid

31011,19

117658,40

299072,31

608362,06

1079482,48

Total Outflow

553987,51

1567252,32

3388920,87

6792749,50

10845354,22

Closing Balance

18854,68

10783,33

194746,74

463083,96

1496404,22

Page 25: Samridhi business plan

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Capital Requirement

In addition to the seed funding of roughly Rs. 32 lakhs provided by Upaya Social Ventures,

Samridhi is looking to raise roughly Rs. 2,40,00,000 in coming two years in order to reach

further 260 odd villages. We shall be able to reach scale with access to additional capital.

Risk Mitigation

Currently, insurance companies do not have an extensive network in rural areas of North

India. Organizations in this area commonly rely on NGOs or insurance agents to meet their

regulatory requirement of rural portfolios. Furthermore, lack of awareness among the rural

people makes it difficult for them to access insurance products. As it is our goal to enable

producers to maximise profits from dairy activities, they could just as easily be pushed

back to below-poverty levels if their cattle are not properly insured. Thus, like any other

business, risk mitigation has to be provided. Currently, Samridhi is purchasing cattle

insurance for its own herd through TATA-AIG, a general insurance company.

Private Livestock Producers of Samridhi are also offered this service, albeit at a slightly

higher price. Veterinary services at affordable prices and other business-support services

are also valued by Samridhi as they will reduce business risk for the producers and ensure

a steady milk supply.

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26

Risk/ Challenge Factor

Source Impact Way to Mitigate

Procurement

Risk

It is difficult to procure

livestock in large numbers,

especially higher yield breeds.

This could be slow the

scalability of the project.

• Samridhi

will partner with the necessary service

providers to provide Artificial

Insemination for the livestock

Quality Risk –

Goats

Since we are procuring the

goats from Rajasthan, it is

possible that the supplier does

not provide genuine breed.

The result could be low

productivity of goats.

• Goats are purchased on agreement

with the supplier, which will clearly

state that the payment to the supplier

will be made only after the goat

delivers the pre-stated amount of milk.

• Identify high yielding local breeds and

their suppliers

Upkeep of the

livestock

Since the cost of the original

animal is not borne by the

employee, they might not take

proper care of the animal.

The result could be

deteriorating health of the

animal, as well as low

productivity.

• The formation of Village Committees to

ensure continuous monitoring.

• Village supervisor to make daily visits

to each household and record the

health status of the animal with a

camera. The body weight of the animal

will be measured at regular intervals

and if it falls below a particular level,

Page 27: Samridhi business plan

27

the cattle to be taken back by the

company. All of this will be

communicated to the employee

beforehand in the agreement. Also,

since a major part of the milk will be

owned by the employee, s/he has a

positive incentive to maintain the

cattle.

Competition

from other

milk buyers

The employee might report

lesser milk, and sell it

elsewhere to other parties in

milk business.

The result could be a

substantial decrease in

Samridhi’s revenues.

• The initial agreement will stipulate the

amount of milk expected by Samridhi.

In case the shortfall reaches a

particular amount, Samridhi will take

the livestock back from the employee.

• Day-to-day monitoring done by the

Village Supervisor.

Reproductive

Risk - Goats

Time distortions in the

delivery of goat kids resulting

from external factors beyond

the control of the goat rearer.

Slower scalability. • Samridhi will arrange for Artificial

Insemination for the goats, improving

the likelihood of consistent

reproduction. Also the Pashu Sakhi will

record regularly track the time of

goat’s heat period to time the artificial

insemination appropriately.

Copycat Another organization could

imitate the model in the same

The potential employee may

shift to the competitor, thus

• As the incumbent purchaser in the

target area, it is difficult to another

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28

Competitors geography, and become a

direct competitor.

causing a decline in our

revenues.

party to enter the same geographical

area. Furthermore, Samridhi has

established an expertise in its

management personnel and

partnerships.

Livestock Mortality

Cows and goats are both being

procured from another state.

Adaptability to the extreme

winter climate in UP

• Each village will have a Pashu Sakhi

(para-vet) trained in basic veterinary

services, and livestock management.

• Village supervisor will make weekly

visits to the livestock rearers’ houses

to ensure that livestock is being fed

properly

Milk Supply Women diverting their milk to

other channels specially

during festivals or local events

Decline in Samridhi’s

revenues

• Samridhi will form a village committee

consisting of one Samridhi field staff,

two ultra poor members and one

opinion leader in each village. The

committee meets regularly and

ensures that there is peer pressure

maintained to discourage women from

diverting the milk

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Samridhi’s Key Values

• Transparency:

Quality standards and pricing information are shared with producers without

restriction. Additionally, producers witness quality tests being done on the milk

right in their villages, and are given clear tools on how price is determined along

with test results. This guarantees fair treatment for all individuals who Samridhi

purchases milk from.

• Direct & Regular Touch with Producers:

Due to their inability to procure sufficient quantities of milk, many dairy facilities

have no option but to run below capacity. This inability to maintain regular milk

supplies can be attributed in part to their negligible presence in producing villages.

Most private companies normally tend to ignore this crucial part of dairy business

and have to depend on middlemen for procurement. Samridhi’s promoters hold

degrees in rural management from premier institutes, but also have worked in the

rural areas alongside milk producers. Under their leadership, Samridhi’s systems

have been developed to ensure regular contact with the milk producers.

• Professional Management

As a highly perishable commodity, milk handling, processing & marketing requires a

great deal of domain knowledge. Samridhi places a lot of emphasis on

professionalism in its operations, regularly collecting and analyzing data on both the

milk it is purchasing and the individuals who are collecting it. Information on

production levels and quality is reviewed daily by management to identify any

potential issues in the process. And a series of social metrics are systemically

gathered and evaluated to ensure all Samridhi employees are meeting their most

basic needs and making continued progress out of poverty.

• Expected Outcomes

Each Samridhi BMC is expected to create 1500 jobs at full capacity. Many of these

jobs are filled by women without any other predictable income stream. These

employees are expected, after receiving steady and increasing incomes, to meet

their critical needs and benefit from a better quality of life. Samridhi is diligent

about collecting and reporting on social metrics to ensure the salaried positions are

generating a tangible improvement in the lives of employees.

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Based on initial lessons from pilot activity, below are the key metrics and expected

outcomes over a period of one to two years:

Metric Pre-intervention Post-intervention Measured via

Residence Live in a “kaccha”9 house Live in a “pucca”10 house

Household Index

Household Assets

Household asset value less than $100

Household asset value of over $300 including cots and other furniture, refrigerator, electric fans, etc…

Household Asset Index

Grameen PPI ™ Score

Average score less than 25 Average score 35 or above Grameen PPI™11

Children’s

Education

Children not enrolled in school because parents cannot afford school fees

75% of school-age children are enrolled in either government or private schools

Household Cash Flow

Financial

Inclusion

Don’t have bank accounts and don’t save

Active bank accounts with regular savings

Samridhi metrics

Number of Meals

Average 1.5 meals/day Eat 2.5 meals/day on average

Customers note increase in variety of food

Samridhi metrics

Current Partnerships

Partner Services Offered Arrangement

Sanchetna Financial Services Private Limited

1. Providing customized loan products to meet the requirements of the clientele in the area of operation

2. Information sharing about the possible areas of intervention

Identical set of promoters

9 Temporary made of natural materials such as mud, grass, bamboo, thatch or sticks 10 A more stable house that has fixed walls constructed of stones, cement/ concrete, timber, etc. but roof is made up of the material like

un-burnt bricks, bamboo, grass, thatch, etc. 11 The Grameen Foundation Progress out of Poverty Index™ (PPI) is designed to measure the poverty levels of households and to track

changes in poverty levels over time.

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Upaya Social Ventures

1. Bridge capital investment 2. Technical support on the business

planning and inclusion of ultra poor households

Capital Investment

The Goat Trust

1. Sourcing of milk cattle 2. Training of Pashu Sakhi 3. Breed enhancement of goat population

in the area of intervention

Memorandum of Understanding

Devashish Milk Foods Pvt. Ltd.

1. Purchasing milk from Samridhi 2. Providing support in chilling milk

Memorandum of Understanding

Management Profiles:

Lokesh Kumar Singh

Lokesh is a Chemical Engineer from HBTI, Kanpur and holds a diploma in rural

management from IRMA. He has over seven years of experience in different fields. He

worked in SKS Microfinance Pvt. Ltd. (India’s largest NBFC-MFI) for over 3 years where he

headed the expansion between 2004 and 2007 in 12 states including UP, MP, Rajasthan &

Bihar. During this time, he built and managed a loan portfolio of over Rs. 200 Crores with

100% repayment rate. During this period he recruited and managed over 1200 employees.

Having been associated with Samridhi since inception gives him insights into managing the

overall operations of Samridhi. He looks after the functions of procurement as well as new

initiatives which has mandate to enhance the procurement as well as other interventions to

meet the requirements of customers of Samridhi.

Niraj Pareek

Niraj is an alumnus of the Accenture-XLRI HR Academy (first batch) and has over five years

of experience. He worked in the Accenture India Delivery Centre at Bangalore for over two

years in the HR Team. As part of their recruitment team, he was involved in recruiting over

24,000 employees in two years. Prior to Sanchetna, he had a stint with a UP based MFI,

where he managed their Varanasi and Dehradun regions.

Niraj was instrumental in spreading the operations of Samridhi to different geographies.

Currently he looks after the function of procurement which includes starting new centers,

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maintaining chilling facilities, looking for prospective buyers of the chilled milk as well as

co-ordination with Business Development team so as to enhance the procurement.

Board Members

Member Qualification Current Occupation Prior Experience

Lokesh Kumar Singh B.Tech.

PGDRM (IRMA)

Founder – Samridhi

Agri Products

Over 7 years in social sector including

3 years with SKS handling operations

in 11 states. Promoted Sanchetna

NBFC-MFI based in Lucknow

Niraj Pareek PG Certificate from

XLRI

Director – Samridhi

Agri Products

Over 5 years including 2 years with

Accenture in HR Team. He is co

promoter of Sanchetna as well as

Samridhi Agri Products Private Limited

Sachita Shenoy MBA - University of

Chicago

Executive Director

Upaya Social Ventures

Capital Markets – JP Morgan Chase

Global Programs Director – Unitus

In charge of new initiatives for the ultra

poor, social performance, and livelihood

promotion activities.

Chris Turillo MBA – University of

Chicago

Co- Founder – Medha Director – SKS Foundation USA

Intern – Sequoia India

Has co-founded Medha which is

organization in the field of skill

enhancement for graduate students

Prabhat Singh Bisht B. Tech. – Pantnagar

Agriculture

University

Management

Consultant

Sr. Manager - NDDB

Has worked with village communities

in order to enhance the milk

Page 34: Samridhi business plan

34

production and to get them

remunerative prices for the same


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