Samridhi Agri Products Pvt. Ltd.

Lokesh Kumar Singh

Executive Summary
About What is unique about your product / service (at least one feature) Funding Requirement Utilization of Investment Funds Raised Till Date Management Team Exit Possibilities 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 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 INR 3 cr over 3 years INR 1.15 cr for assets for chilling INR 1.85 cr for procurement of livestock Total of INR 64.62 lakhs have been infused INR 28.62 lakhs promoters equity, INR 31 lakhs FDI, INR 5 lakhs loans 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 Further rounds of investment from VC / PE M&A with another rural supply chain company or large dairy producer 2 Buy back after organic growth of 3-5 years

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

Market Opportunity
District
Sitapur

Rural Population
3,944,454

Marginal Farmers
2,040,347

Agri Laborers
1,073,867

Barabanki
Lucknow Total

2,927,736
1,550,737

1,485,640
189,279 3,715,266

781,915
58,384 1,914,166

Target Segment
Landless laborers Marginal farmers with low land activity

Economic Indicators and Gaps to be filled

No skills No productive assets PPI of less than 18 Land size less than 1 acre No forward linkages No access to farm equipment

Proposed Solution
Milk production and livestock ownership as a livelihood option Agriculture credit with moratorium on payments Equipment on rent
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Pain Points and Intervention Required

Pain Points and Intervention Required

Pain Points in Service

Samridhis Approach

Milk production:
Marginal farming:

Infusion of patient capital

Holistic approach Asset on micro-leasing

Low resources

Irregular incomes

Information Dissemination on best practices

Regularity of payment Arrangement for fair price discovery of final produce

Lower Surplus High cash Outflow

Borrowing at high cost

USP: Uniqueness of Concept and Delivery

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
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Surveys Conducted / Clients Targeted

After 3 years, cattle offspring owned by company. Original owned by Client Milk generated shared between Samridhi and Client

Cattle (one cow / three goats) given to Client

Business Model
To ensure cattle productivity and health Surveys conducted and clients shortlisted Cattle bought and reared at Samridhis farm for 2 weeks Cattle de-wormed and vaccinated Cattle productivity checked to meet the minimum requirement Clients brought to the farm and assigned the cattle (1 cow, or 3 goats) Original livestock kept by client Offspring handed back to Samridhi: Goats: 1 female kid per goat per year handed back Cows: 2 shecalves after 3 years handed back

Sale of Milk

Milk production
Milk generated thereafter, poured at the Companys Dairy Centre Fixed Wages of INR 600/month OR one bag of cattle feed paid to rearer

Livestock ownership by client

Client identification and livestock distribution

To incentivize client to take care of original cattle and maintain liability with the client

Highly Profitable for Client and Samridhi

Revenue Stream Margin from milk Margin from feed Margin from vet services
Cattle Owner Non-Member

Clients Profit 1000L @ INR 21/L 21,000 INR 20/bag INR 100/visit

Samridhis Profit 1000L @ INR 3/L INR 3,000 INR 10/bag -

Revenue Stream Margin from fixed amount of milk Margin from additional milk Margin from sale of goat calves

Clients Profit/Savings 556.5L @ INR 20/L INR 11,130 Rs. 20,000 INR 20/bag

Samridhis Profit 556.5L @ INR 23/L INR 12,800 556.5L @ INR 3/L INR 1,670 INR 10/bag
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Cattle Rearer Member

Margin from feed

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 the National 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

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Scalability Proposition
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

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Partnerships
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

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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 Niraj Pareek (Senior Manager) Six Years of experience in HR and Micro Finance Executive HR Accenture India MBA- XLRI Accenture Academy 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 Christopher Turillo Director/ Advisor Co-Founder Medha Over seven years in the development sector Manager Business Development - SKS MBA University of Chicago 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
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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

Organizational Structure: Current

Top Management Lokesh Singh, Niraj Pareek

BMC In Charge

BD- Community Associate

Field Associates

Village Collection Centres

Para Vet / Pashu Sakhi

Cattle Rearers

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Organizational Structure: Way Forward

C.E.O

C.O.O

C.F.O

ManagerSales

ManagerProcurement

Manager- HR/ Admin

ManagerSystems

ManagerAudit

Unit Manager

BMC In Charge

Field Associates
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Use of Funds
Set up several scalable units comprising of:
100 families that will be given cattle 300 families that will be milk 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:
March13 BMC Villages Covered Direct Jobs Created Daily Procurement (L/day) 4 96 440 7,200 March14 12 288 1,320 21,600
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Competitive Advantage
Attributes Asset Leasing Credit on Input Advisory Services Fair and Transparent Pricing Regularity of Payment Experienced Management Services at door step
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Local Player

Private Company

State Player

NGO

Samridhi

Financial Projections: Social and Financial Profitability (INR lakhs)

Revenue Milk Sales 2012-13 536 536 460 44 6 2 512 24 16 2013-14 1408 1408 1207 106 14 7 1334 74 49 2014-15 3380 3380 2897 195 25 15 3132 248 165

Total Income
Expenses Milk Procured Salaries Admin Expenses Interest Expenses Total Expenses Net Profit Before Tax PAT

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Risks and Mitigants

Risk Factor
Lack of Standardization

Source
Productivity of cattle variable

Mitigation Strategy
Expected quantity is function of cow productivity making sure that the member is not penalized

Scalability

Difficulty in procuring cattle in large numbers

No formal market for cattle

Partnership with The Goat Trust to buy and maintain goats

Purchase through Agent with buy back guarantee

Sourcing of cattle

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Towards Prosperity...

Thank You
Samridhi Agri Products Pvt. Ltd. 5/82 Vipul Khand Gomtinagar, Lucknow 0522- 4076350
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Appendix I: Goat Reproductive Cycle

7 Months

7 Months

7 Months

7 Months

7 Months

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