Samridhi Agri Products Pvt Ltd

Samridhi – A Venture of Young Professionals • Private Limited Company, started operations in 2010.• Team of professionals with total professional experience of

over 70 years in the fields of microfinance, rural retail, banking and IT.

• Started with dairy initiative, procures milk from BPL rural women

• Area of Operation- Deva-Block of District Barabanki, Uttar Pradesh (amongst 100 poorest districts)

• Focus of activities to reach out to the poorest of poor as identified by PPI™ (ideally less than 18)

• Baseline Survey Format

Current Status: On the Path to Scale Up

• Created 68 direct jobs from

BPL population having PPI™

<18

• Currently procuring 1088

LPD from 234 members in 7

villages

• Operational break-even

achieved in the month of

October’11

Oct’11

Jan’12

April’12

Sep’12

Dec’12

Implementation Commences

First batch of cattle assigned

140 Direct Jobs Created

Evaluation Completes

Scaling Up

Samridhi: 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.”

India Vs Bharat – A Tale of Contradictions

• 69% of total population is in villages (Census’11)

• 72% of population in villages are farmers

• About 16% of total population are casual laborers

(Census’11)

• 45% of total farmers are marginal farmers (Economic

Times)

• Average 48 wage days in MNREGA (CAG)

Rural Crisis – Bharat is NOT Shining

Way-out – Infusion of Patient Capital and Ecosystem

• Asset on micro-leasing• Consumables on credit with moratorium in

payment• Information dissemination on best practices• Regularity of payment• Arrangement for fair price discovery of final

produce

Area of Operations – Immense Potential

District RuralPopulation*

Marginal Farmers**

Agri. Laborers**

Sitapur 39,44,454 20,40,347 10,73,867

Barabanki 29,27,736 14,85,640 781915

Lucknow 15,50,737 18,9,279 58,384

Total 37,15,266 19,14,166

Target Segment - 1 Target Segment - 2

* Census – 2011, **ICSSR - 2001

Infinite Opportunities, Resource Constraints Target Segment

Economic Indicators Proposed Solution Potential (Three target districts)

Target Clients till 31st March’15

-No skills-No Productive Assets-Grameen* PPI™ of less than 18

Milk production as livelihood option

5,00,000(Discounting rural casual labor population by 50%)

6,870

-Land size less than 1 Acre- Dependence on Input Supplier- No forward linkages- Getting farming equipment on rent

•Agriculture credit with moratorium on payments• Equipments on rent

19,00,000 (Discounting by 50%)

32,360

*Grameen Foundation Progress out of Poverty Index ™ (or “PPI”)

Livestock as Livelihood - Laborer to ProducerService Client/Annum Samridhi/Annum

Margin from Milk INR 6,000 INR 3,500

Margin from Feed INR 240 INR 120

Veterinary Services INR 1,200 -

Service Client/Annum Samridhi/Annum

Milk For Samridhi - INR 22,050

Additional Milk INR 9,450 INR 1,575

Selling Calves INR 6,900 -

Fixed Salary INR 6,000 -

Calculation for Client has been for Goat rearingFamily rearing goat will have additional income in three years – INR 94,000

Impact Assessment – Rigorous and Regular

• Capture individual PPI™ scores for each client• Other indices we measure to indicate social

impact: 1. Housing Index 2. Nutritional Index 3. Education Levels 4. Cash Flow of households• Quarterly surveys every quarter to assess the

progress out of poverty

Uniqueness – In Concept and Delivery

• Localized Solutions - Use of local resources - Skill development of villagers

• Ecosystem, not a single activity- Access to assets- Skills- Inputs- Marketing of produce

Human Resources and Partnerships – Strength of Solution

• Partnerships:Sanchetna – Financial ProductsUPAYA SV – Technical and financial supportASI Voca – Agri ServicesThe Goat Trust – Para Vet ServicesGopaljee Group – Marketing

• Promoters: Seven IRMA graduates having combined

social business experience of about 50 years, out of which 25 years in Amul

Board: Pillar of StrengthMember Qualification Current

OccupationPrior 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

Niraj Pareek PG Certificate from XLRI

Director – Samridhi Agri Products

Over 5 years including 2 years with Accenture in HR Team

Sachita Shenoy MBA - University of Chicago

Executive Director – UPAYA Social Ventures

Capital Markets: JP Morgan, PwCDirector, Global Programs - Unitus

Chris Turillo MBA – University of Chicago

Co Founder – Medha

Director – SKS Foundation USAIntern – Sequioa India

Prabhat Singh Bisht

B. Tech. – Pantnagar

Management Consultant

Sr. Manager - NDDB

Organizational Structure

Competitive Scenario: Crowded with Enough Scope

Area Player Services

Milk Production Milkmen Procuring milk with erratic payments but advance extended

State Co-op Procuring milk from village coordinators based on FAT only

NGO In the field of Extension Services but grant dependent

Animal Husbandry Dept.

No services at the villages level. Villagers are supposed to be paying for each visit hence dependence on quacks

17

Competitor Analysis (In Market)

Attributes Local Player

Private Company

State Player

NGO Samridhi

Advisory Services

Fair and Transparent Pricing

Regularity of Payment

Experienced Management

Services at door step

Resource Requirement – Social and Financial Rewards

Total Equity Requirement – INR 3,00,00,000

Particular Amount Allocated

Assets for Chilling Stations 1,15,00,000

Cattle 1,85,00,000

Total 3,00,00,000

Towards Prosperity….

Thank You

Samridhi Agri Products Pvt Ltd

5/82 Vipul KhandGomtinagar, Lucknow

0522- 4076350

7 Months 7 Months

7 Months

7 Months

7 Months

Annexure 1: Goat Reproductive Cycle

Time Goats LPD/Goat

Samridhi Member’s Share(LPD)

No. of Days

Member’s Benefit(INR)

Male Goats

Feb ’12- Jul ’12 1 1.25 0.85 0.40 153 1285.20 -

Sep ‘12- Feb ’13 1 1.50 0.85 0.65 153 2088.45 1

Apr ‘13- Sep ’13 1 1.75 0.85 0.90 153 2891.70 1

Nov ’13- Apr ’14 1 2.00 0.85 1.15 153 3694.95 1

Apr ‘14- Sep ’14 1 1.25 - 1.25 153 4016.25 -

Jun ‘14- Nov ’14 1 2.00 0.85 1.15 153 3694.95 -

Nov ‘14- Feb ‘15 2 1.25 - 2.50 122 6405 1

Total Revenue to the client from Milk: INR 24,076.5Cost of feed @6 LPD Net Benefit = 24,076.5 – 6,879 = 17,197.5Total Revenue to the client from sale of Male goats: INR 14,000Total Benefit to the Client: INR 31,197.5

Annexure 2: Client Benefit from One Goat

Assumptions for Milk As Livelihood

• A non-member generates 1,000 liters of milk in a year• Members given 3 goats for a period of three years• Productivity of goats goes from 1.25 LPD to 2 LPD in

three years• Price of a male goat: INR 3,500• Margin on liquid milk: INR 3.5/Liter