Samridhi Presentation for Intellecap

8/2/2019 Samridhi Presentation for Intellecap

1/21

Samridhi Agri

Products Pvt. Ltd.

Lokesh Kumar Singh


2/21

2

Executive Summary

About Samridhi runs a dairy venture that creates livelihood solutions for

Ultra Poor Families (< $1.25 / day) Outreach: 200 Members in 13 villages in Barabanki District, Lucknow

Incorporated as a Pvt. Ltd. since 2010

What is unique about your

product / service (at least

one feature)

Unique concept and delivery

Providing cattle to those who can not afford it

Use of local resources and skill development of villagers

Holistic approach to livelihood enhancement

Funding Requirement INR 3 cr over 3 years

Utilization of Investment INR 1.15 cr for assets for chilling

INR 1.85 cr for procurement of livestock

Funds Raised Till Date Total of INR 64.62 lakhs have been infused

INR 28.62 lakhs promoters equity, INR 31 lakhs FDI, INR 5 lakhs loans Management Team Extensive experience of over 70 years with target clientele through

Agri, Dairy, IT, Microfinance, rural Retail backgrounds

Extensive experience in U.P.

Distinguished Board of Directors with diverse backgrounds

Exit Possibilities Further rounds of investment from VC / PE

M&A with another rural supply chain company or large dairy producer Buy back after organic growth of 3-5 years


3/21

Mission and Vision

Mission:To increase the productive capacity of the

rural producers by providing sustainable

small scale business solutions in a socially

responsible manner

Vision:

To create livelihood solutions for 1,00,000

families across over 1000 villages and

creating 20,000 direct jobs by the year 2017


4/21

4

Market Opportunity

District RuralPopulation

MarginalFarmers

AgriLaborers

Sitapur 3,944,454 2,040,347 1,073,867

Barabanki 2,927,736 1,485,640 781,915

Lucknow 1,550,737 189,279 58,384

Total 3,715,266 1,914,166

Target Segment Economic Indicators

and Gaps to be filled

Proposed Solution

Landless laborers

Marginal farmers

with low land

activity

No skills

No productive assets

PPI of less than 18

Land size less than 1 acre

No forward linkages

No access to farm equipment

Milk production and livestock

ownership as a livelihood option

Agriculture credit with

moratorium on payments

Equipment on rent


5/21

5

Pain Points and Intervention Required


6/21

6

Pain Points and Intervention Required

Pain Points inService

SamridhisApproach

Milk production:

Marginal farming:

Infusion of patient capital

Holistic approach

Asset on micro-leasing

Information Dissemination on

best practices

Regularity of payment

Arrangement for fair price

discovery of final produce

Irregularincomes

Borrowingat high cost

High

cashOutflow

LowerSurplus

Lowresources


7/21

7

Packaged Services Offered

De-worming and Vaccination

Artificial Insemination

Cattle Feed at the Doorstep

Para Vet Services

Localized Solutions

Use of local resources

Skill development of villagers

Holistic Approach

Access to assets

Skills

Inputs

Marketing of produce

USP: Uniqueness of Concept and Delivery

SurveysConducted /

Clients Targeted

Cattle (one cow /three goats) given

to Client

Milk generatedshared between

Samridhi andClient

After 3 years,cattle offspring

owned bycompany. Originalowned by Client


8/21

8

Business Model

Surveys conductedand clients shortlisted

Cattle bought andreared at Samridhisfarm for 2 weeks

Cattle de-wormed and

vaccinated Cattle productivity

checked to meet theminimum requirement

Clients brought to thefarm and assigned thecattle (1 cow, or 3goats)

Client identificationand livestockdistribution

Milk generated

thereafter,poured at theCompanys Dairy

Centre

Fixed Wages ofINR 600/monthOR one bag ofcattle feed paid

to rearer

Milk production

Original livestockkept by client

Offspring handedback to Samridhi:

Goats: 1 femalekid per goat per

year handed back Cows: 2 she-calves after 3years handedback

Livestockownership by

client

Sale of Milk

To ensure cattle

productivity and

health

To incentivize client to take

care of original cattle and

maintain liability with the

client


9/21

9

Highly Profitable for Client and Samridhi

Cattle Owner

Non-Member

Cattle Rearer

Member

Revenue Stream Clients Profit Samridhis Profit

Margin from milk 1000L @ INR 21/L

21,000

1000L @ INR 3/L

INR 3,000

Margin from feed INR 20/bag INR 10/bag

Margin from vet services INR 100/visit -

Revenue Stream Clients

Profit/Savings

Samridhis Profit

Margin from

fixed amount of milk

- 556.5L @ INR 23/L

INR 12,800

Margin from

additional milk

556.5L @ INR 20/L

INR 11,130

556.5L @ INR 3/L

INR 1,670

Margin from

sale of goat calves

Rs. 20,000 -

Margin from feed INR 20/bag INR 10/bag


10/21

10

Current Status of Operations

First piloted the model in April 2010 at Deva Block of Barabanki District in U.P

Barabanki: Marked as A category district with social and economic performance below theNational Average

Deva: Rural block with agriculture and animal husbandry as main activity

Currently have about 200 members

Families reached out to: Cow Beneficiaries: 23, Goat Beneficiaries: 18

Distribution Tied up with Swades Milk Products

Cows owned by company 23 and Goats currently owner - 54

How Samridhi measures impact:

Collects baseline indicators to capture social metrics including the PPI

Housing Index

Nutritional Index Education Levels

Cash Flow of households

Repetitive surveys every quarter to assess impact on households


11/21

11

Identifying target geographies:

Target area contains large segment of small farmers who depend on cattle rearing for livelihoods Unit Model set up at the centre of village cluster, thus ensuring centralised system of reaching out

One Unit Model already set up and successful

Distribution tied up with a Milk Retail Company

Way Forward: Model has immense potential as milk demand supply gap is still about 100% :(Avg World

Demand*Population of India)(Indias Production)

Identify a cluster of 12 to 15 villages with large number of small and marginal farmers/ labourers

with no fixed source of income

Set up a Unit Model at the central point within the cluster

Plan to reach out to 288 villages by March 2014 adding about 20 60 villagers/quarter Region sought to scale up to: Central U.P

Samridhi is actively looking at adding more partners so as to enable it to manage the risk of over

dependence

Scalability Proposition


12/21

Sanchetna Financial Products: For Cattle Insurance, and Cattle Loans. Since April

2010

UPAYA SV Technical and financial support: Formal Investor in October 2011

The Goat Trust Livestock Procurement and Para Vet Services, since October 2011

Gopaljee Group Marketing, since March 2011

Partnerships

12


13/21

13

Strong Experienced Team

Lokesh Singh

(Managing Director)

Seven Years of experience in Micro Finance

Sr. Regional Manager SKS Microfinance

Program Officer Naandi Foundation

MBA- IRMA, B Tech- HBTI, Kanpur

Process Excellence Awards Planet Finance

Sachita Shenoy

Director/ Advisor

Over ten years of experience in developing social

enterprises

Executive Director UPAYA Social Ventures

Director of Global Programs, UNITUS

MBA University of Chicago

Niraj Pareek

(Senior Manager)

Six Years of experience in HR and Micro Finance

Executive HR Accenture India

MBA- XLRI Accenture Academy

Christopher Turillo

Director/ Advisor

Co-Founder Medha

Over seven years in the development sector

Manager Business Development - SKS

MBA University of Chicago

Surbhi Rana

(Promoter/ Advisor)

IRMA Graduate with over 8 years of experiences

in rural sales and distribution

Work experience of over 4 years with AMUL in

strategy department

Post AMUL has been with Agri Input industry

Sanjay Dhaunta

(Promoter/ Advisor)

IRMA Graduate with over 8 years of experience in

rural sales and distribution

Has been with AMUL since last eight years

Currently posted as Sr. Manager Product for

North and East India


14/21

Organizational Structure: Current

Top Management

Lokesh Singh, NirajPareek

BMC In Charge

Field AssociatesVillage Collection

Centres

BD- CommunityAssociate

Para Vet /

Pashu SakhiCattle Rearers

14


15/21

Organizational Structure: Way Forward

C.E.O

C.O.O

Manager-Sales

Manager-Procurement

Unit Manager BMC In ChargeField

Associates

Manager- HR/Admin

C.F.O

Manager-Systems

Manager-Audit

15


16/21

16

Set up several scalable units comprising of:

100 families that will be given cattle

300 families that will bemilk pourers

1 BMC

1 delivery van

Equity Requirement: INR 3 Cr. over the next 2 years

INR 1.15 Cr. for purchase of equipment such as BMC Adding about 72 direct jobs

INR 1.85 Cr. for purchase of livestock

Milestones:

Use of Funds

March13 March14

BMC 4 12

Villages Covered 96 288

Direct Jobs Created 440 1,320

Daily Procurement (L/day) 7,200 21,600


17/21

Attributes Local

Player

Private

Company

State

Player

NGO Samridhi

Asset Leasing

Credit on Input

Advisory Services

Fair and Transparent Pricing

Regularity of Payment

Experienced Management

Services at door step

Competitive Advantage

17


18/21

Revenue 2012-13 2013-14 2014-15

Milk Sales 536 1408 3380

Total Income 536 1408 3380

Expenses

Milk Procured 460 1207 2897

Salaries 44 106 195

Admin Expenses 6 14 25

Interest Expenses 2 7 15

Total Expenses 512 1334 3132Net Profit Before Tax 24 74 248

PAT 16 49 165

Financial Projections:

Social and Financial Profitability (INR lakhs)

18


19/21

Risk Factor Source Mitigation Strategy

Lack of

Standardization

Productivity of cattle

variable

Expected quantity is function of

cow productivity making sure that

the member is not penalized

Scalability Difficulty in procuring

cattle in large numbers

Partnership with The Goat Trust to

buy and maintain goats

Sourcing of cattle No formal market for

cattle

Purchase through Agent with buy

back guarantee

Risks and Mitigants

19


20/21

Towards Prosperity...

Thank You

Samridhi Agri Products Pvt.

Ltd.

5/82 Vipul Khand

Gomtinagar, Lucknow

0522- 407635020


21/21

7 Months 7 Months

7 Months

7 Months

7 Months

21

Appendix I: Goat Reproductive Cycle

Date post:	05-Apr-2018
Category:	Documents
Upload:	lokesh-kumar
View:	217 times
Download:	0 times

Samridhi Presentation for Intellecap

Documents