1

RUDI Multi Trading Company Limited

BUSINESS PLAN

For

Shri Shwashry Mahila Khet Majur Association

HaHarikrupa Complex, Above The Bank of Baroda,Kadi road, Nandasan,

Gujarat

Ruth Cheriyan B.A Economics St.Xaviers College (Third Year)

2

TABLE OF CONTENTS

About SEWA…………………………………………………………………………………….3

SGMH……………………………………………………………….……………………3

RUDI…………………………………………………………………………………..….4

Objectives

Partners

Structure

Mehsana……..………………………………………………………………………...7

Interviews………………………………………………………………………………………12

Roles and responsibilities ……………………………………………………………..14

Grades………………………………………………………………………………………..…16

Sales 2013-14……………………………………………………………………………..…17

Production 2013-14…………………………………………………………………….…17

Cash Flow 2013-14…………………………………………………………………….….18

Expense 2013-14……………………………………………………………………….….19

Production plan 2014-15………………………………………………………….……20

Sales plan 2014-15………………………………………………………………….…….21

Expected expense 2014-15………………………………………..………….………22

Marketing plan………………………………………………………………..……………23

3

Brand Promotion…………………………………………………………………..………24

SEWA

SEWA is a Self Employed Women’s Association that was registered as

a trade union in 1972. Two thirds of SEWA’s 1900000 members are

rural producers.

SEWA has two main goals- to organise women for full employment

and make them self-reliant. Full employment means employment

whereby workers obtain work security, income security, food

security and social security. By self-reliance we mean that women

should be autonomous and self-reliant, individually and collectively,

both economically and in terms of their decision-making ability. They

strive to make these producers the owners and managers of their

own work, in a sustainable and profitable manner.

SEWA organises workers to achieve their goals of full employment

and self-reliance through development strategies.

These development activities strengthen the women’s bargaining

power and offer them new alternatives. Practically, the strategy is

carried out through the joint action of union and cooperatives. The

Gandhian thinking is the guiding force for SEWA’s poor, self-

employed members in organising social change.

4

ABOUT SEWA GRAM MAHILA HAAT

2/3rd of SEWA’s members are rural agriculture workers and they

face several problems related to income, social and job security.

SEWA has organized agriculture workers and made them aware of

their rights. They are now aware of their role in this field and have

even increased their bargaining power.

Keeping the problems mentioned above in mind, SEWA Gram Mahila

Haat (SGMH), a state level Apex marketing organization of SEWA was

founded with the help of Commissionerate of Rural Development,

Govt. of Gujarat and SEWA, in 1999, to eliminate middlemen and

provide technical, financial and marketing facilities to the Rural Poor

Producer Groups of Gujarat. SEWA Gram Mahila Haat now reaches

out to markets all over the country for its agricultural products.

SGMH provides integrated marketing services to the rural producers

by exploring, developing & establishing first the local and then the

national market for rurally produced products. The Gram Haat has

focused on four sectors: agriculture, salt, forest produces and

handloom/ handicrafts, as members in these sectors constitute a

large proportion of SEWA’s membership.

5

MEHSANA

Mehsana is one of the 26 districts of the state of Gujarat. This district has a

population of over 18 lakhs in an area of 4,500 km². There are over 600 villages

in this district. Mehsana shares its borders with the Banaskantha district in the

north, Patan and Surendranagar districts in the

west, Gandhinagar and Ahmedabad districts in south and Sabarkantha district

in the east.

Major towns of the district are Vijapur, Bahucharaji, Modhera, Unjha,

Vadnagar, Kalol, Kadi, Visnagar, Kherva, Jotana and Khadalpur, Sanganpur.

Mehsana has 9 talukas. These are Becharaji, Kadi, Kheralu, Mahesana,

Vadnagar, Vijapur, Visnagar, Satlasana and Unjha.

The main crops are Bajra, jowar, jira, cotton and oilseeds, vegetables, chilli,

mung, gowar, etc. The major trading crops in the district are oilseeds, cumin,

isabgul (psyllium) and anise. The commercial center of Unjha is famous

worldwide for its fennel, Cumin seed and Isabgol markets.

Asia's second largest dairy 'Dudh Sagar' is situated in Mehsana.

Dudhsagar and Sardar milk dairies have created white revolution in field of

animal husbandry by forming 671 milk co-operatives of milk producers and

cattle breeders.

This district is the largest on-shore oil producing asset of ONGC in India, with

1,200 flowing oil wells and 23 active gas wells.

6

There are a total of 160 RUDI ben working in 300 villages, under the Mehsana

center and have managed to get 50360 members till date.

RUDI

RUDI Multi Trading Company was established with an objective to

internally generate funds for the rural producer groups so as to

enhance the quality, capacity and efficiency of production through

the use of better technology for the farming, warehousing and

postharvest processing of the agro commodities which will help in

scaling up the profit margins by way of bulk procurement and a well-

organized sales and distribution network. The profits will then be

shared by the members of the rural self-help groups, which will bring

a positive change in the economic condition of marginal farmers and

workers who are struggling to survive and are below the poverty line.

The company provides direct market to the agro commodities

through the rural retail network that it plans to set up across all the

villages in 9 districts of Gujarat. RUDI Company also provides

multiple employment opportunities, reduced incidental expenses,

availability of good quality agricultural & non-agricultural products to

the rural consumers at affordable prices and required quantity,

elimination of middlemen, better earning for the producers and

thereby socio economic development of the underprivileged rural

people.

7

In brief there is a huge latent demand for Agro-products the only

thing needed is development of proper infrastructure for supporting

the demand satisfaction. This indirectly would lead to substantial

amount of cost savings as, 30 to 40% of the production which gets

wasted during the various stages of picking, harvesting, packing,

transportation, storage, marketing and consumption with the

availability of adequate cold storage facilities, better means of

packing and proper transport, these wastages can be avoided. At the

village hub storage center, adequate storage and handing facilities

are provided by the service providers more importantly, operation

like cleaning, drying, grading etc. After the primary processes like

cleaning, grading, drying etc. the goods are sent to pack house and

some goods for which further value addition in terms of processing is

needed are sent to the processing unit at the district level from

where the processed goods are sent again to the pack house and

then subsequently secondary transportation of the cleaned, graded

and packed raw and processed goods to the other districts for sales

and also to the village and district haat in the same district.

8

PARTNERS OF RUDI

• Farmers group

1. Vadu khedut gram vikas mandal

2. Ganesh pura khedut gram vikas mandal

3. Shubh lakshmi-1 mahila sewa bachat mandal

4. Kaaiyal khedut gram vikas mandal

5. Shubh lakshmi-2 mahila sewa bachat mandal

• Processors group

• Distributors

• RUDI Bens

• Institutional tie-ups

1. Star Bazzar

2. Hotels

3. Hostels

9

RUDI STRUCTURE

Distributor

Distributor

RUDI BEN

FG

FG

Distributor

PC

District Farmer’s Association

FG

RUDI CO.

RUDI BEN

RUDI BEN

10

RUDI TEAM

The RUDI team consists of a group of women who facilitate the smooth

functioning of the entire process. They work as marketers, distributors,

quality controllers, accountants, etc. They earn a daily salary of rupees

125 each. The RUDI bens travel from their respective villages to the

processing centre in Nandasan, Mehsana. They then have a discussion

on the number of households to be covered on the field. A pre-

determined route plan gives them an idea of how to go about

distributing goods in different villages.

The following is a list of The RUDI ben working under the Mehsana

centre.

11

The duration is the number of years the individual has been with the

organisation.

The distance is the area travelled from their respective villages to the

Processing Centre in Mehsana.

RUDI Ben- Interviews

1. Sumitra ben: Sumitra ben has been working with RUDI for the past 15

years. She resides in the village of Punasan, which is 20km away from

the processing centre in Nandasan. She has 70 customers in her village

and has 3 RUDI bens under her to help her complete the process of

selling the products. Even with three bens under her, she finds it difficult

to go to every household in a month and takes about 2 months to finish

one round of marketing and sales. She manages to earn an amount of

20,000 rupees every month. Moong dal, tuard dal and rice are the

highest sold products in her village whereas, tea leaves are hardly

bought.

2. Manjula ben: She comes from the village of Kaaiyar and has been

working with RUDI for 25 years. She has 5 RUDI ben under her and has

about 75 customers to cater to. Rice, tea and oil are sold fast whereas,

Chilli masala sells the slowest. She sells goods worth 50000 rupees every

month to the villagers. Manjula ben is 57 years old and finds it difficult to

travel from the processing centre to the villages with the RUDI products.

12

3. Jubeda ben: Jubeda ben hails from Mandali and has 25 customers in her

village. She has no RUDI ben under her and has to do a lot of work by

her-self. Sugar, rice, dal and oil are the widely sold. Chilli and tea leaves

are scarcely sold. Jubeda ben manages to get 5000 rupees every month

from the selling of RUDI products.

4. Varsha ben: Varsha ben lives in Kalool and has 25 customers. She has 5

RUDI ben under her who help her with the selling and marketing of the

product. Fenugreek seeds can hardly be sold in her village. Every other

product can be sold easily in her village. As a result, she manages to

achieve her target of selling products worth 50000 rupees. But her

customers complain about how the RUDI products are more expensive

than the market price of the same product.

RUDI team: ROLES AND RESPONSIBILITIES

1. Processing centre in-charge- Mandakini ben

Should be very punctual.

Should be committed to making the centre profitable.

Prepare business plan with team and strive to achieve the target.

Assign work to different members of the team.

Check the renewal dates of licenses.

Involving every member in some responsibility.

Motivate team members and pay attention to their complaints.

13

2. Purchase in-charge- Asha ben

Prepare a purchase plan with the Processing centre-in-charge,

annually and quarterly.

The plan should be created according to the budget.

Has a major role in obtaining the products at a low price.

Aware of the daily market prices of products.

The purchase in-charge should follow the given format while

planning.

S

l

.

n

o

.

Party’s

Name

Party’s

Contact

Details

Product

name

Location of

Purchase

Purchase plan

(Monthly,

Quarterly,

Annually,

Seasonal)

Quantity Rate Total

amount

Re

mar

ks

3. Production in-charge-

Should prepare production plan according to the size of the bag

Assure strict follow-up on

4. Quality control in-charge-

Should get the product tested in the laboratory.

The certificates of production should be kept safely.

14

Responsibility to check quality of goods at purchase and also the

final products, otherwise the goods should not be packed.

The final responsibility is of utmost importance. If overlooked, a

heavy fine is to be paid to the government.

5. Accountant-

Should keep all the books in order.

Have timely records of purchase, sales, revenue and expenditures.

Should keep in-touch with the processing centre in-charge to get

details daily.

6. Processing Team- 15 members

Should be punctual at all times.

Should be well-trained in processing methodology from

cleaning, grading product quality, packing, weighing and

labelling.

Keep in-mind the number of products taken for sales and

those returned.

15

Achieved Sales target against A & B RUDIben

The RUDI ben are graded according to three models, A, B and C. Grade A see

RUDI products for an average of Rs.50000 monthly. B grade see goods and

manage to get an amount of 25000 monthly and grade C an amount of 10000

or less monthly.

C grade RUDI bens work under A and B grade RUDI bens.

The following table indicates the sales for the year 2013-14.

16

The following table shows us the purchase for the year 2013-14.

These tables show us the top five products that are sold in the villages.

A surplus of 1,96,117 rupees was attained from the sales, when the

amount purchased was subtracted from it, in the year 2013-14.

The surplus money is used to pay the various expenses incurred during

that year including wages, bills and labour cost.

17

Cash Flow 2013-14

A. INFLOW CR DR

Commission 3% 26465

Sales 1726629

OUTFLOW

B.Admin exps.

Centre Rent 84000

Electricity bill 12000

Telephone bill 6000

Team leader salary 91200

Stationery 2000

Maintenance 6000

Miscellaneous 3000

C. Trading exps.

Lab charge 12000

Packing expenditure 24000

Rudi Packing material 12000

Promotional exps. 7000

Route Charge 45000

Labour charge 7200

B+C 311400

A-B+C 1441694

18

The table below shows us the expense incurred for the year 2013-14.

19

It is necessary to prepare target plans and estimate the sales and expenditure

for the coming years so as to:

Encourage bens to complete the target.

Have a clear idea on how to use the funds.

Have a track on cash inflows and outflows.

Spend funds on priority expenditure.

The tables given show us the production plan, sales plan and expected

expense for the year 2014-15.

Production plan 2014-15

20

The sales plan for the year 2014-15. It has been divided according to

spices, cereals and non-agricultural products.

21

Expected expense for the year 2014-15 are:

22

The product wise costing format is enclosed in ANNEXURE-1

MARKETING

The RUDI bens have a pre-determined amount of selling a target of 5, 00,000

rupees worth of goods in a month.

They have to design marketing techniques that would attract customers and be

efficient at the same time.

Some of them are

23

Door-to-door selling : RUDI bens go from house to house to take orders

from customers and sell RUDI products.

RUDI days : RUDI days are days when the RUDI bens market their

products in the villages with banners, pamphlets and other marketing

equipment. The Mehsana centre has their RUDI Days on the 5th, 15th and

25th of every month.

Bulk order taking : The RUDI ben also sell their products at hostels, hotels

and other institutional set-ups. They reduce the price at a pre-

determined rate which is lower than the normal retail rate. RUDI has

provided its goods to the rural sector and is now looking forward to sell

at the urban market.

The RUDI bens have a target of selling 500000 rupees of products per

month. They plan to achieve this target by practising the same

marketing techniques and using a 100 RUDI bens for this process.

BRAND PROMOTION

RUDI products are of a good, unadulterated quality. They are the instruments

used in giving empowerment and self-sufficiency to women. A lot of effort

goes into transforming the raw materials into finished goods. And hence the

price of RUDI products tends to be more than the market price. For example,

the market price of rice is 36 rupees for a Kg. The price of rice sold under RUDI

for every Kg. is 40 rupees. This becomes a problem in the rural areas and

makes it difficult to convince people to buy it. Thus effort must be made to

promote the product for its value for money.

24

STRATEGY:

• RUDI is scaling up in its business for which it needs to adopt new brand

promotion stage at national and village level. They need to spread the

awareness with a social message by using new communication

technologies

– An attractive short film on the company and personal accounts of

the RUDI experience would give encourage RUDI bens to work

harder and also attract customers if they are shown during events

in villages.

– Organize village events especially as ‘RUDIDAY’, theme exhibitions

or participate in exhibitions which will give high reputation to the

products as well as women who contribute to empower the

society through RUDI.

– Wall paintings, posters and pamphlets are effective tools for

brand promotion.

– The RUDI ben should get a unique identity. They should be

recognized as RUDI bens by wearing uniform clothes, Rudi coat,

cap or any other apparel.

– Performing dramas on the street so that they understand the

objective and product value of. Also use RUDI Radio for promoting

RUDI at villages.

– RUDI products should be attractively packed and put on display

during RUDI Days.

25

– Sponsorship for brand promotion from companies who are willing

to help the promotion of the products.