hariyali copy 091110215329 phpapp02
Post on 03-Apr-2018
220 Views
Preview:
TRANSCRIPT
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
1/36
HARIYALI KISAAN BAZAAR
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
2/36
INDEX
The Rural Market Context
Gaps in the Rural economy
Hariyali Business Model
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
3/36
The Rural Market Context
The Rural Ecosystem Rural Demographics
Rural Incomes
Agriculture Agriculture Income
Challenge of Agricultural productivity
Agriculture Trend Agri-Inputs Consumption
Rural Household Consumption
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
4/36
The Rural Ecosystem
The Rural Market
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
5/36
The Rural Ecosystem The Rural Market
Agriculture
andAllied Activities
Harvesting and
AgriproduceMarketing
ConsumptionTrading,
Warehousing etc.
Rural Business
Opportunity
Agronomy Advise Agri-Inputs
Credit Post-Harvest Mgmt
Market Linkages
Output Buyer
Commodity Trading
Warehousing
Commodity exchanges
Consumer Goods Household Goods
Financial Services
Healthcare
Education
There is opportunity to participate in the complete rural ecosystem, i.e.both the income and consumption side
(Rural Incomes - $450 bn & Consumption - $ 250 bn)
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
6/36
Rural demographics The Rural Market
Rural India supports a population of 790 mn. as of 2005 (70% of Indias
population) living in about 600,000 villages distributed as under,
Even with increasing urbanization and migration, 63% of Indias populationis expected to live in rural areas, in 2025. (Abt. 906 mn.)
Also, 78% of the rural population lives in 35% of the locations.
A huge potential in terms of the growing market size
3
15
32
63
65
22
%a ge v il la ge s P opula t ion spr ead
< 1000 people1000-5000 people
> 5000 people
(%age) SOURCE: MGI INDIA & NCAER
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
7/36
Rural population by Category
548614
514
403 263
20
58 253 411
435
53
18120
10
3
0
100
200
300
400
500
600
700
800
900
1000
1985 1995 2005E 2015F 2025F
Year
Population(mn)
Global (>Rs.10 L.pa)
Strivers (Rs.5-10 L.pa)
Seekers (Rs 2-5 L.pa)
Aspirers (Rs0.9 -2 L.pa)
Deprived (< Rs 0.9 L.pa)
Rural Incomes The Rural Market Rural India generates an income of Rs. 19000 bn. ($ 450 bn) which is
approx 48% of Indias GDP.
Per capita rural income is growing at the same pace as urban income.
Rural India is witnessing robust income growth and theaspirational classes are growing
571 682 790 875 906
SOURCE: MGI INDIA & NCAER
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
8/36
Agriculture
The Rural Market
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
9/36
Agriculture Income The Rural Market Agriculture contributes about 37% of the rural GDP (Approx. Rs.6000 bn.
($150 bn))
Agriculture expected to continue as primary source of income and
employment for majority of rural Indians in the foreseeable future- Mckinseystudy.
Agriculture is expected to grow at 3.1% CAGR over the next two decades asagainst 2.4% CAGR in the last decade (8.8% in nominal terms)
Compound annual
growth rate
Agriculture value added in GDP(In '000 crores, Indian rupees, 2000)
430546
752
997
1995 2005E 2015F 2025F
2.4%
3.1%
Agricultural incomes expected to be $250 bn by 2025
SOURCE: MGI INDIA & NCAER
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
10/36
Challenge of Agricultural Productivity The Rural Market
Increasing agricultural productivity requires new technology and inputs
Source: Economic Survey of India 2007-08
0
500
1000
1500
2000
2500
3000
1991 2001 2002 2003 2004 2005 2006 2007
Kg
/ha
Wheat
Rice
Cereals
Oil
Seeds
Yield CAGRs
Pulses - 0.6%Cereals - 1.7%Wheat - 0.95%Paddy - 1.22%
Wheat Yield Comparison (kg/Ha)
India - 2600China 4300Mexico - 4700UK - 7900World Average - 2900
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
11/36
The Productivity Gap The Rural Market
Productivity growth essential to cater to food requirement
Current level of productivity Productivityrequirement tomeet growing demand
Source: Ministry of Agriculture & Cooperation, India
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
12/36
125
511338
43
208
87
2279
90
242
117
29110
132
0
100
200
300
400500
600
700
1993 1998 2003
Agriculture & Allied Output ('000 crs) (Nominal)
Fruits & Vegetables (CAGR 13.1%)
Milk group (CAGR 9.8%)
Meat Group (CAGR 8.9%)
Other agri & livestock (CAGR 8.7%)
Cereals,Pulses, Oilseeds, Sugar
(CAGR 6.8%)
Agriculture Trend The Rural Market
Therefore, agricultural productivity expected to improve
Shift towards higher value added farm activities likely to continue
270 486 630
Shift towards value added agriculture and productivity gains expected to
increase demand for quality agri-inputs and technology advise
SOURCE: NATIONAL ACCOUNTS 2005, MGI
INDIA & NCAER
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
13/36
Agri Input Consumption The Rural Market
Indias Agri input consumption is approx Rs 80,000 cr and is currentlygrowing at approx 3%
Key categories like fertilizer, pesticide and seeds have market sizes of Rs30000 crs, Rs 4100 crs and Rs 5200 crs, growing with 3 %, 3.2 % and 5.7 %CAGR
As with yield levels, Indias Agri-nutrient consumption per acre is muchlower than other countries
India Bangladesh China Netherland
108 198 289 510
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
14/36
Agri Input Consumption The Rural Market There is need to,
Increase Food production Shift to value added farming
Increase agricultural productivity
Agri-input consumption, is therefore, expected to increase, backed by,
Better farm produce realizations Technical Advisory services.
Shift towards better seed varieties
Government initiatives like National Horticulture Mission, Irrigationprojects etc.
Access to institutional credit.
As the country takes steps towards more intensive agriculture, thedemand for quality inputs and farm technology expected to accelerate
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
15/36
Rural Household Consumption
The Rural Market
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
16/36
378
4127
50
439
1044324 0
359
456
8739 29
301
919
251
100100
211
1030
871
211
317
0
500
1000
1500
2000
2500
3000
1985 1995 2005E 2015F 2025F
Rural consumption by Category (Rs '000 crs)
Global (>Rs.10 L.pa)
Strivers (Rs.5-10 L.pa)
Seekers (Rs 2-5 L.pa)
Aspirers (Rs0.9 -2 L.pa)
Deprived (< Rs 0.9 L.pa)
Rural Household Consumption The Rural Market
Rural India is a consumption market of approx. Rs.9700 bn ($230 bn) as of2005 and is expected to roughly triple by 2025 (Rs26400 bn or $630 bn)(Growing at 4.9% p.a)
Hence, by 2025, Rural India market is expected to be larger than markets ofSouth Korea, Canada today or 4 times Indias urban market today
A very large consumption market dominated by New to bracket consumers
450 610 970 1670 2640
SOURCE: MGI INDIA & NCAER
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
17/36
Rural Household Consumption The Rural Market
Average rural consumption per household
Thousands, Indian Rupees, 2000
116
45 50
67
104
158
Urban
India,
2005E
1985 1995 2005E 2015F 2025F
Per Household spending in Rural India expected to reach currenturban levels in next ten years
SOURCE: MGI INDIA & NCAER
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
18/36
Gaps in the Rural Economy
Gaps Rural Economy
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
19/36
Gaps in the Rural Economy
Infrastructure:
Poor road and telecommunication connectivity
Lack of reliable electricity and water supplies
Limited logistics infrastructure & High distribution costs
The silver lining, however, is,
About 50% of the population lives in connected districts with reasonable infrastructure.
Govt. focus on inclusive growth and investment in Infrastructure development i.e. Bharat
Nirman Yojana, NREGS
Private sector also taking steps to build warehousing, logistics & power infrastructure.
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
20/36
Gaps in the Rural Economy
Demographic Spread
Population widely dispersed, disaggregated consumption
Low per capita spending
The silver lining, however, is that through the top 20,000 denselypopulated locations, over 15% of the population in rural can becatered to.
Higher costs of servicing rural markets will be a continuingchallenge for marketers
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
21/36
Gaps in the Rural Economy Market Characteristics:
Lack of availability and choice
Look-alike Locals dominate the market. (Local players in theunorganized sector are able to provide cheaper products)
Few trusted, national brands (Limited exposure to the multitude ofproducts in urban India)
Malpractices prices higher than MRP, faulty weights and measures,adulteration, consumer schemes not passed on
Retailers would often misuse their position as the only source ofinformation.
A poor buying experience
Inefficient markets with Basic service levels.
Lack of reliability , trust and choice for the customers
h l
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
22/36
Gaps in the Rural Economy Agriculture:
Basic
Small land holdings (Avg. holding 1.5 Ha) Investment in Agriculture only 2% of GDP Degrading Soil Health Depletion of Water Table
Agriculture Practices Repetitive Crop Cycles Low yield levels Low Input consumption (NPK consumption of 116 kg /Ha against 289 kg/Ha in China) Lack of last mile delivery of new agri-technology & practices Traditional expensive sources of farm credit (Farmers caught in debt traps) Low Farm Mechanization & Non-availability of Irrigation facilities
Farm produce Marketing Dependence on State for disposal of Farm Produce Underdeveloped Market Infrastructure
Large potential for Agricultural development
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
23/36
Summary - Rural Economy
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
24/36
Summary Rural Economy
Scope & Size: The rural ecosystem with an income size of $450 bn andconsumption level of $250 bn offers a large enough opportunity for organized
businesses.
Future growth: Rural household incomes are growing at the same pace asurban and a large consuming class is expected to emerge in the rural areas.
Market Structure: Rural markets fairly basic in nature. Lack availability,
choice, quality products and service levels. High costs of reaching out to ruralmarkets for individual marketers.
Agriculture: While agriculture is expected to continue as the mainstay ofrural population, a much more customized and commercial approach isrequired to improve productivity levels.
Last mile gap in Agri-technology: Bridging the last mile gap in Agri-technology is critical to increasing Rural Incomes.
The true potential of agriculture and the rural economy can be unlocked, if abusiness targets to address the key gaps in a commercial and viable manner.
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
25/36
Hariyali Kisaan Bazaar
Harnessing the potential of rural India
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
26/36
Hariyali Kisaan Bazaar
Hariyali means Greeneryin Hindi
It signifies Prosperity in Agriculture
Kisaan Bazaar means Farmers market
Hariyali Concept
The business is designed to unlock the latent opportunity in ruralmarkets facilitating inclusive growth
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
27/36
Hariyali ConceptFocused at increasing rural incomes by providingfree agronomy advice and bridging last mile gap
in technical know-how
Developing Strong relationships based on trust,reliability and fairness
Leveraging relationships through one stopshop retailing and direct sourcing of qualityfarm produce
The Strategic intent of the business is to provide the rural customer with
choice, trust, dignity and thus create long-term relationships
Value proposition of efficient procurement,improved logistics, strategic pricing andmultidimensional dealings with the customers
Creating platform between urban and rural
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
28/36
Vision and Mission
VISION
To be the leading and trustedRural Products and Services Enterprise
MISSION
We are committed to
improving the quality of life in Rural Indiaby providing superior products and services
and efficient sourcing of quality agricultural produce
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
29/36
Business Portfolio
Hariyali
RetailFinancial
Services
Agri-
businesses
Agri-inputsFood
& Grocery
Lifestyle Household
Fuel
Insurance Banking
Others
F&VCommodity
Trading
Seeds Warehousing
Milk Cattle feed
Agri-Services
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
30/36
Formats
Center A model rural hub located near
large rural agglomerations orhighways
Focused on all retail and agribusinesses
Format that encompasses Agri-services, One-stop-retail-shop,Sourcing, Banking services, Fuelstation and Recreation areas
Spread over owned 4 acre campus
Retail space of 15-20K sqft.
Store Located in the marketplace of small
towns
Focused mainly on retail businesses
Convenience format encompassingagri-services and retail of selectcategories
Compact space of 4K-5K sq. ftretailing agri-inputs and FMCG
Penetrating markets through appropriate formats
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
31/36
Hariyali - Centers
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
32/36
Hariyali - Stores
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
33/36
Business Extensions Property Related
Shop in Shop Mall Management
Extra Land Holdings
Business Integration
Retail Cash & Carry Business
Merchandise Outlets in Tier 4 cities
Financial Services NBFC / Microfinance
Trading Processing of Dals /Spices
Milk Dairy Business Integrated Food Supplier
Hariyalis business portfolio
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
34/36
Agri-Services
Hariyali s business portfolio
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
35/36
Agri Services Agri Services are provided as a value added offering
Customised advice on specific opportunities/ problems Farm Visits by Agronomists for giving Technical Advice Field demonstrations for propagating best practices Agronomy Seminars along with experts for last mile delivery of best
practices Soil and water test based recommendations
Agri Services is directed at improving farmers productivity and incomelevels.
Dedicated qualified agronomists offer unbiased guidance thus building quickrapport with the farmers of the area.
Wide networking with National / International Agri Institutes like CIMMYT,IRRI, University of Adelaide for Knowledge Management and disseminationof best practices
Creates long term relationship with the farmers.
Serves as a foundation for Hariyalis Retail, Financial & Agribusinesses
-
7/29/2019 Hariyali Copy 091110215329 Phpapp02
36/36
Hariyali.creating a scalable, viable
business having a transformational impact
www.dscl.com
top related