Samriddhii

2. Samriddhii Rural, Agriculture & Food Retail Social Enterprise

3. Structure • KAUSHALYA Foundation (KF) • Vegetable Sector • Growers & Vendors Life • Vegetable supply chain • Our interventions & Samriddhii model • From Unit to Model to Replication

4. KF: Overview • Mission Statement “To develop a model to increase income and generate employment at the grass root level by an equitable and holistic development.” • Vision Statement “Professionalizing the informal trade channel of fresh farm produce and creating gainful, dignified self-employment for the families dependent on agriculture sector.” • Sector focus • Rural, Agriculture and Food Retail • Work Profile • Creating Low Investment F&V Value Chain. • Branding of Fresh Farm Produce • Organizing & Professionalizing the Vegetable Supply Chain • Creating FPOs Started in 2007

5. KF: Overview • Extensive Direct interactions for first one year • Development of Samriddhii Model in 2008 • Formation of KNIDS Green Pvt. Ltd. (KGPL) in 2008 • Rolling out the model in 2008 • MBA Sabziwala by 2009 • Samriddhii model as a national policy in 2011 – NVI ( NHM )

6. Sector Snapshot • Size of the Industry-INR 1500 Billion. • Growth Rate- 9-10% • Wastage- Industry Average- 30% to 40% • Social Demographic, >70% of India’s Population. • Bihar – 3rd largest in India • First in Cauliflower & Brinjal production • Livelihood to small, landless & marginal farmers • Provide Livelihood to poor coming to cities for work – Entry free job • Back End • Participants: • SMAL Farmers • Landholding less than 20000 Sq. Ft. • Smaller Economy of Scale • Wastage- Approx. 10% • Front End • Participants: • Unorganised and fragmented - More than 99% Market Share • Organised Players- Less than 1% Market Share • Wastage- Approx. 25-35% SMAL: Small, Marginal And Landless

7. Vegetable Growers: At a Glance • Have Very Limited or No Direct Access to the Market, Market Infrastructure & Market Intelligence • Have to Carry a load of 50 kg on head to the nearest Mandi located at 5-10 Kilometers • Approx. 80% work force in vegetable cultivation are women. • More than 90% of the Bihar Vegetable Growers are SMAL (Small, Marginal And Landless). • Only 8% have adopted latest agronomical practices because most of them are unknown to it and do not have wherewithal to have it.

8. Street Vendors: At a Glance • More than 70% are women. • More than 90% are migrant from other part of the state • Live under fear of Traffic police and other municipal authorities • Often pay hafta to the local gundas • 14-16 Hours of Working Time • Price & Income Risk • Unsold Leftover Vegetables • More than 25% Wastage • Smaller Economy of Scale

9. Vegetable Supply ChainCurrent Form- Players, Their Roles & Gaps • Small scale and poor—cannot store or manage inventory • Have to carry 40-50kg goods for 5-10km to village mandi—productive time lost and high cost of logistics • Price discovery at mandi—no option but to sell—at mercy of buyers who are often powerful and corrupt • Wastage 10-15% Farmers--Producer Local Village Mandi City / Town Mandi City Wholesale Markets Retail : Carts and Stores Consumer

10. Vegetable Supply ChainCurrent Form- Players, Their Roles & Gaps • Small scale and poor—cannot store or manage inventory • Have to carry 40-50kg goods for 5-10km to village mandi—productive time lost and high cost of logistics • Price discovery at mandi—no option but to sell—at mercy of buyers who are often powerful and corrupt • Wastage 10-15% Farmers--Producer Local Village Mandi • 2-4 levels of middlemen add little value—prime role is channel finance • Multiple handling at each stage—damage produce, increase wastage, increase logistics costs • Financially strong—can withhold stocks and control market, impact prices • Wastage 5-10% (but quality drops) City / Town Mandi City Wholesale Markets Retail : Carts and Stores Consumer

11. Vegetable Supply ChainCurrent Form- Players, Their Roles & Gaps • Small scale and poor—cannot store or manage inventory • Have to carry 40-50kg goods for 5-10km to village mandi—productive time lost and high cost of logistics • Price discovery at mandi—no option but to sell—at mercy of buyers who are often powerful and corrupt • Wastage 10-15% Farmers--Producer Local Village Mandi • 2-4 levels of middlemen add little value—prime role is channel finance • Multiple handling at each stage—damage produce, increase wastage, increase logistics costs • Financially strong—can withhold stocks and control market, impact prices • Wastage 5-10% (but quality drops) City / Town Mandi City Wholesale Markets • 90%+ sales through carts, <10% through stores (incl. organized) • Long workday—buying and selling • Cannot stock so have to sell by end of day—distress selling and wastage • Wastage 15-25% Retail : Carts and Stores Consumer

12. Vegetable Supply ChainCurrent Form- Players, Their Roles & Gaps • Small scale and poor—cannot store or manage inventory • Have to carry 40-50kg goods for 5-10km to village mandi—productive time lost and high cost of logistics • Price discovery at mandi—no option but to sell—at mercy of buyers who are often powerful and corrupt • Wastage 10-15% Farmers--Producer Local Village Mandi • 2-4 levels of middlemen add little value—prime role is channel finance • Multiple handling at each stage—damage produce, increase wastage, increase logistics costs • Financially strong—can withhold stocks and control market, impact prices • Wastage 5-10% (but quality drops) City / Town Mandi • Poor and unreliable quality and hygeine as no processing throughout supply chain • Prices vary through day, and from day-to-day—difficulty in home budgeting • Inconvenient to buy—haggling, selecting quality produce, etc. City Wholesale Markets Retail : Carts and Stores Consumer

13. Vegetable Supply ChainCurrent Form- Players, Their Roles & Gaps Farmers--Producer • Wastage across supply chain 35-40% • Time and energy wasted by farmer, retailers and consumer • Deterioration in quality of goods due to time taken to reach consumer (8-24hrs) and multiple stages of handling • Produce is not quality checked, sorted, cleaned etc, creating hygiene and health issues Local Village Mandi City / Town Mandi City Wholesale Markets Retail : Carts and Stores Consumer

14. Interventions &samriddhii model

15. Our interventions • Samriddhii AC Green Cart • Pre-packaged branded vegetables • Integrated vegetable value chain

16. Our interventions: AC carts • Keeps vegetables fresh for longer period • Maintain the temperature of 5 to 15 degree Celsius depending on the surrounding temperature • Light weight ( only 70 Kg) • Carry more weights ( can carry upto 200 kg vegetables) • Better display of vegetables ( 10 different compartment) • Easy to pull & push • Space for advertisement – helps vendors in earning more income per month

17. The Cart of Change AC carts to vegetable vendors leads to lesser wastage , clean & beautiful city and hence lower prices of vegetables & more income to vendors which leads to better bargaining power & inclination of vendors to move up the chain and passing the benefits to farmers in order to assure the availability of produce to customers which leads to increased income of farmers.

18. Our interventions: Pre-packaged Branded Vegetables • Packaged in perforated food grade transparent material • Labeled with • Samriddhii brand • MRP • Weight • Name of the vegetable • Bar code • Easier in transaction • Time saving • Cost saving • Ease in monitoring, handling & management because of packaging

19. Our interventions: Integrated Vegetable Value Chain (Samriddhii) • Direct procurement from farmers • More income to farmers • Elimination of middle men • Offering value added service like inputs, extension, financial linkages etc. • Processing , packaging and distribution through centralized processing center • 3 –stage quality inspection • Grading as per the market need • Retailing/sales through road side vegetable vendors • First time in the world • More income to vendors • Social and economical upliftment

20. SamriddhiiTM Value Chain • Collect direct from farmers—farmer saves time, money, reduce wastage—income increases 25-50% • Advance Price intimation—farmer controls sale decision (Samriddhii or Mandi)—and assured buyer • Near zero wastage Farmers--Producer Samriddhii collects Transports, Processes and Delivers • Processing center stores, cleans, sorts, processes and packs produce for different clients (retail, institutional etc) • Efficient, hygienic, retain food quality • Minimize wastage to < 5%--aim for 2% • Refrigerated carts retain food quality • Pre-packed and weighed packets—quicker sale process • Samriddhii delivers food and collects unsold goods—convenience and lower cost for seller, wastage is minimal • Assured income—huge improvement and life quality Retail : Carts and Stores • Get consistent, assured quality and price • Quick purchase as packets are pre-weighed and priced • Don’t need to clean before cooking—save time and water Consumer

21. Unittomodeltoreplication( market & potential)

22. From Debt Capital of 80 Lakhs Repaid more than 60 Lakhs Crossed a Turnover of 5 Crores

23. The Growth Story A Network of More than 7000 Farmers & 500 Vendors OperatingSamriddhiiiTM AC Green Carts Launched Exclusive Vegetable Retail ShopBihar Fresh Built a Primary Processing Center of 20000 sq ft 200 MT Of Vegetables

24. SamriddhiiTM Model • Samriddhii sells through 4 channels: • AC Carts • Retail chains—urorganized (mom and pop) and organized • Bihar Fresh (own retail outlets) • HORICA (Hotels, Restaurants, Institutions & Caterers)

25. Positioning

26. IMPACT Socio-economic Enhancement Across the Agri-business Value Chain

27. Socio Economic Impact of Enterprise No product or equipment sale (cost impact) to work force (farmer/vendor). No external imposition to existing socio-economic comfort zone. Inclusive & transparent strategic partnerships with producer and vendors. Traceability used to enhance pride and associated onus for product. Participation in business model encouraged across sexes. Organisational benefits to disorganised farming and street vendors. Evidencing collaboration across a traditionally feudal farm & rural community. Scalability that fetches growth, partnership & hope to agricultural society. Mutual reliance and personal achievement through extended reach to markets to much ignored agri-business SME sector.

28. “ COMING TOGETHER IS A BEGINNING. KEEPING TOGETHER IS PROGRESS. WORKING TOGETHER IS SUCCESS.” HENRY FORD Thank you