hariyali kisaan bazar

Prof. Vinay Jha

HARIYALI KISAAN BAZAR

Hariyali Kisaan Bazar

Hariyali Kisaan Bazaar

DEFINING RURAL INDIA RURAL RETAIL SCENARIO IN INDIA REGULATIONS AND POLICIES IN RURAL RETAIL

SIGNIFICANT PLAYERS – 1. Goderj adhar ITC -Chaupal Hariyali kisan bazaar BUSINESS MODEL OF ITC IMPEDIMENTS & RECOMMENDATIONS


Census of India defines Rural Settlements as...... Population lower than 5,000 persons Population density lower than 400 persons/sq. km At least 75% of male population engaged in Agri. activities. June 7, 2009

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RETAIL TOWARDS RURAL AREAS GREAT OPPORTUNITIES FOR MARKETER THE INDIAN RURAL MARKET

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Rural India consists of 720 Million consumers across 6,38,000 villages

--- 17% of these villages account for 50% of the rural population and 60% of the rural wealth

----Extensive reach is required as to cover 50% market 1,00,000 villages must be catered Immense opportunity amounting to US$ 125 billion

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Rural Retail is growing @ 7% p.a. Rural consumption is also shifting from

basic food grains to fruits, vegetables, dairy and poultry products, as well as beverages

Demand for better quality food leading to huge demand for basic foods

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The Rs 140,000 crore rural retail market is expected to cross Rs 180,000 crore mark by 2010, And up to Rs 240, 000 crore by 2015 (CII).

The rural revolution is driven by R ising purchasing power, Changing consumption patterns,

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Increased access to information and communication technology,

Improving infrastructure Increased government initiatives to

boost the rural economy ,

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OCCUPATIONS URBAN RURAL Cultivator 5 40 Petty Shopkeeper 15 5 Wage earner 20 35 Salary earner 40 20 Others 18 8 US China

India Total Retail 2325 323 180 Value $ bn

% Salience to above

Traditional 15 80 98

Modern 85 20 2

Source: Census 2001, IRS 2006, AC Nielsen Source: AC Nielsen


Is a value seeker Seeks comforts and amenities Does not wish to be seen as the

deprived cousin. Does not experiment easily but this does not mean that “he would not

change”. Values local relationships because of unfavourable past experiences

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Hariyali Kisaan Bazar Poor migration from lab-to-land – Multiple agencies involved in research, but lab results not

getting replicated in the farmer field – Lack of credible agri-advisory to farmers • Availability of quality inputs – Un-organised retail of inputs leading to low control on

quality of inputs being supplied • Availability of Finance : Low coverage under formal

credit / crop insurance – 85% of farmers have no access to institutional credit – Ineffective crop insurance products • Inefficient output markets – Information arbitrage that currently allows middlemen to

exploit the farmers

Hariyali Kisaan Bazar Primary focus on increasing Income Levels Qualified agronomists manning the outlets &

providing customized technical advisory to farmers 24 X 7. Increasing

agricultural incomes can,

• Trigger the rural economy

• Stem the migration to cities Constraint : Agronomy What has worked ?

• Customized solution

• Collaborative approach


Major Players in Rural Indian Scenario GODREJ ADHAR ITC-CHAUPAL HARIYALI BAZAAR

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FORMAT OF GODREJ ADHAR FMCG products, fertilizers, animal

feed, etc. Services like banking, insurance, pharmacy, postal services and petrol pumps

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Services offered crop advisory services, soil & water testing services; buy back of output, crop finance, supply of agri inputs and animal feeds, transfer of information (weather, price, and demand supply), door delivery of products etc.

A COMPLETE SOLUTION PROVIDER FOR THE INDIAN FARMERS provides professional guidance with an objective to improve productivity, higher returns and improved cost benefit ratio.


24 outlets in eight rural locations across the country and each outlet services 20 villages in its vicinity

Godrej Aadhar has already forged JVs with Apollo Pharmacy, Tata Agrico, Bajaj Allianz Life Insurance and HPCL for value added services at the outlets.

The company plans to set up more than 1,000 stores by 2011.

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The Trusted Rural Business Hub Help the customer increase his income, educate the customer, before you sell to the customer

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Hariyali Kisaan Bazaar Mr. Ajay Shriram, Chairman Mr. Vikram Shriram, Vice Chairman & MD

The concept aims to simplify the Private label seeds Contract farming – vegetables Procurement

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Hariyali Kisaan Bazar DSCL plans to expand to 250-300 outlets by the end

of FY 2008-09. Each store covers an area of 3-4 acres and is managed by a team of 7-8 people whom the Company trains continuously. It offers the rural household all farming and consumer products and related services along with financial services under one roof. The company also launched credit services during its second quarter 2007-08, in association with HDFC bank, providing loans for various purposes. June 7, 2009 Hariyali Kisaan Bazaar

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The number of Hariyali outlets now stands at 177, which the company plans to scale up aggressively to around 300 outlets by March 2009. Launched in 2002-03 ‘ Hariyali’ is now present in 8 states across India

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This concept aims to Provide the power of expert knowledge to even the smallest farmer. Information helps farmers secures better price, quality and productivity

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Benefits to farmers include Better purchase price of agri-inputs Avail information on best farming

practices Command prevailing market prices 4 million farmers benefited through

6,500 installations covering around 40,000

villages

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Providing Urban Amenities in Rural Areas Making available “Aspirational” but “Value for Money” household products triggering demand in the rural economy Giving the Customers the right to choose Giving the farmers respect, dignity and freedom of choice

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Assured quality & quantity Easy Availability of quality products

at “city-like” fair prices does two things, • Reforms local shopkeepers / trade

channels • Stems the “Market Migration” to

cities


Linking Farmers through IT Providing ATM access, weather forecasts, commodity prices & commodity futures

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Catchment Radius of 20-25 kms. Approx. gross income Rs.280 cr. ($ 60 mn) About 15-20,000 Agricultural Land CATCHMENT DETAILS farming families 30-40,000 Ha With each center reaching out to 20,000

farming families, the Hariyali model is proving to be an example of

commercially sustainable business venture which triggers

inclusive growth

Thank You

hariyali kisaan bazar

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