Transcript Global AgriSystem Corporate Presentation

Your Partner in Agribusiness
Global Vision
 By partnering with farmers on an equitable basis,
Global AgriSystem will position itself as India’s
premier Supply Chain Managers, providing best
quality fresh produce to retailers, exporters and
processors.
 Global AgriSystem will revitalize Indian
agriculture by introducing post-harvest technology
and management skills of the highest
international standard
Global AgriSystem – Your preferred partner in
agribusiness
Privileged and Strictly Confidential
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Background
 Incorporated as Cebeco India [ jv with Cebeco
Group Co-operative, Holland] on 13th January
1998
 Now a Katra Group company, www.katra.biz
 India’s largest agribusiness services and
solutions firm
 Offers consulting, technical assistance, post
harvest technology and fresh produce
 Operates in India and Africa
Privileged and Strictly Confidential
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Management
Gokul Patnaik
Chairman
Ramesh Vangal
Director
Chairman Katra Group
Kunal Kumthekar
Director
Director, Nine Rivers
Privileged and Strictly Confidential
S K Sharma
Managing Director
A.T.Jacob
Director
M.D., Katra Phytochem
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Business Units
Agribusiness
Services
Consulting &
Technical
Advisory
Post Harvest
Services
Privileged and Strictly Confidential
Turnkey &
Project
Management
Services
Fresh Produce
& SCM
Solutions
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Team GAPL
BOD & Chairman
MD
Marketing
Finance
IT & Systems
Admin, HR &
Legal
Supply Chain Management
Consulting & Technical Advisory
Advisory Services
Amaya Foods Pvt. Ltd.
Sunshine AgriSystem Pvt.
Ltd.
Swan Cold Store Pvt. Ltd.
Market Survey
& Entry
Strategy
Project Report
& Feasibility
Study
Financial
Services
Turnkey & Project
Management
Post Harvest
Management
Engg. Technical
Services
Construction of
PH
Infrastructure
Bid Process
Management
Marketing of
PH Chemicals
Global AgriSystem-Agra
Global AgriSystemLudhiana
Avan AgroTech Pvt. Ltd.
Privileged and Strictly Confidential
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Business Unit
Consulting & Technical Advisory
Overview
 India’s largest consulting and technical services
provider
 Clients include Indian Government, corporates
and international agencies
 Over 200 projects delivered covering pan India
 New business areas include agribusiness
development in West Africa
Privileged and Strictly Confidential
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Scope of Services
Consulting
& Technical
Advisory Services
Projects
Area Sector Market
Survey
Project Reports
Business Plans
Evaluation
M&A
Industry Services
Technology
Audits
Process & Protocols
Privileged and Strictly Confidential
Project Finance
Aid, Grant&Subsidy
Partner Search
Bank Appraisals
Engineering
Design & Planning
Tender Papers
Procurement
Technical
Supervision
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Clients
Government of India
 Commerce
– APEDA
 Agriculture
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NHM
DMI
NHB
NAFED
NDDB
SFAC
NIAM
International Agencies
 Asian Development Bank
 World Bank
 Common Fund for Commodity
 International Finance Corporation
 Food Processing Industries  Food & Agriculture Organization
 Government of the Netherlands
 Home Affairs
– Inter State Council
– EVD
 Petroleum
– IOC
 Central Warehousing
Corporation(CWC)
Privileged and Strictly Confidential
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State Government Clients
NORTH
SOUTH
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Punjab
Haryana
Uttar Pradesh
Himachal Pradesh
Uttarakhand
Jammu & Kashmir
NORTH EAST
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Meghalaya
Sikkim
Arunachal Pradesh
Nagaland
Assam
Tripura
Manipur
Mizoram
Privileged and Strictly Confidential
Andhra Pradesh
Kerala
Tamil Nadu
Karnataka
EAST
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West Bengal
Orissa
Bihar
Chattisgarh
Jharkhand
WEST
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Rajasthan
Gujarat
Goa
Maharashtra
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Agribusiness Clients
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Tata Group
– Rallis
– Tata Chemicals Khet Se
– Hi-Tech Drilling
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A V Birla Retail
Adani Agri Fresh
Heritage
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Heritage Foods
Fresh@
Hero Group
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Reliance Retail
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Chambal Chemicals & Fertilizers
Privileged and Strictly Confidential
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Field Fresh Foods
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Escorts
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Acme Fresh
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Kellogg Brown & Root, USA
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Nive bv, Holland
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Aviko bv, Holland
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Rixona bv, Holland
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Certis bv, Holland
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Servi Doryl SA, France
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Rohm & Haas Inc, USA
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Partnerships
 Ernst & Young, India
 IDFC, India
 Price Waterhouse Cooper,
India
 ACI, USA
 ANZDEC, New Zealand
 Deloitte Touche Tohmatsu,
India
 HTSPE, UK
 Rabo Bank, India
 Agriment, Holland
Privileged and Strictly Confidential
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Business Unit
Turnkey & Project Management
Overview
 Integrated agribusiness, technology and service solutions
 Using knowledge base and relationship using technology
engineered to Indian conditions in
– Custom growing
• 40,000 acres grain and cereals
• 5,000 acres vegetables
• 4,000 acres fruit orchards
– Agri Engineering & Project Management
• Fresh Produce Packhouses
• Cold Stores
• Distribution Centers
• Food Industry
– Technology Development
• Cheese & Paneer Processing Technology
Privileged and Strictly Confidential
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Scope of Services
Turnkey &
Project
Management
Services
Contract Farming
Agri Extension
Crop Supervision
Partnerships
Farmer Enrolment
Post Harvest
Marketing Support
Privileged and Strictly Confidential
Sourcing
Planning
Buying Support
Producer and Seller
Linkages
Sourcing Teams
Audits
Facility Build
Operate
& Management
Technology
Design & Planning
Technology
Procurement
Monitoring
Operation
Management
Process
Development
Process Viability
Localization
Commercializing
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Projects
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Tata Chemicals Khet Se
– Packhouse & Cold Store,
Malerkotla Punjab
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Punjab Agri Food Park
– Nursery, Packhouse, IQF Unit,
Sirhind, Punjab
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Heritage Foods
– Packhouse & Cold Store,
Madanapalli, Andhra
– Packhouse & Cold Store, Mulugu
Medak, Andhra
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Field Fresh Foods
– Center of Excellence, Ludhiana,
Punjab
– Custom Growing & Sourcing,
national
Privileged and Strictly Confidential
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Aditya Birla Retail
– Retail F&V Sourcing, national
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Sunshine Farms
– 1000 acre farm, Packhouse and
MA store, Uttar Pradesh
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HPMC
– Apple Packhouses
– Apple Juice Concentrate Plants
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Indian Hotels
– IQF & RTE, RTC Foods
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Escorts
– 40,000 acre custom growing
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Acme
– Packhouse & Cold Store, Gurgaon
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Fresh Produce Supply Chain
SCM Model
 Agri Extension & Technology Transfer to small
farmers
 Procurement Hubs at strategic locations
 Distribution Centers at Major Markets
 Activities
– Contract farming on 2000 acres around each facility
for 1-2 national/regional products and 6-7 local
products
– PHM to meet product requirements & customers
needs
– Need based long term storage (ambient & controlled
temperature/CA)
– Value added customized packaging for retail
Privileged and Strictly Confidential
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GAPL Model of Supply Chain
Contract Farmer
Aggregator
Contact Farmer
PH
DC
Food Processors
Privileged and Strictly Confidential
Organized Retail
7 July 2015
Exports
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Business Model for SCM
Contract
Farming
Direct
Procurement
Backward
Linkages
Collection Centers
•Consolidation
•Aggregation
Value
Addition
Cold Storage
•Pre Cooling
/Hydro Cooling
Minimal Processing Centre
•Sorting/Grading
•Ripening/Pre-cooling/ Drying
•Cutting/dicing
Dry
Storage
Distribution Centre
•Batch Making & Packing
•Dispatch
Refer Vans
Forward
Linkages
Exports
Privileged and Strictly Confidential
Institutional
/Corporate Sales
Own Retail/
Wholesale Network
Domestic
Wholesale Markets
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GAPL supply chain network
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Existing hubs
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Proposed Hubs- (2009 - 10)
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Nasik (Maharashtra)
Indore (Madhya Pradesh)
Sikandrabad (Uttar Pradesh)
Agra (Uttar Pradesh)
Ludhiana(Punjab)
Solan (Himachal)
Belgaum (Karnataka)
Karur (Tamilnadu)
Kullu
Chomu
Valsad
Guwahati
Bhubaneshwar
Anantpur
Future Targets (2010-12)
– 14 units to be established in next 2 years for which 11 potential locations already identified
– Horizontal & vertical expansion of selected units
Privileged and Strictly Confidential
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Supply Chain Network
KULLU
SOLAN
LUDHIANA
DELHI
AGRA
GUWAHATI
CHOMU
BULANDSHAHAR
INDORE
VALSAD
BHUBANESHWAR
NASHIK
MUMBAI
HYDERABAD
BELGAUM
ANANTPUR
CHENNAI
BANGALURU
KARUR
Pack House
Privileged and Strictly Confidential
Distribution Centre
Existing
Existing
Planned
Planned
Supply Chain Network - 2012
Solan
Bulandshahar
Kullu
Ludhiana
Ganganagar
Delhi
Agra
Guwahati
Indore
Valsad
Nashik
Kolkatta
Patna
Mumbai
Sangli
Bhuwaneshwar
Belgaun
Jalgaon
Bangalore
Ananthapur
Existing
Mettupalayam
Karur
Under Imple
Phase II
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Where we want to be
 Particulars
2012-13
 Turnover
212.27 Cr
 Gross Profit
Cr
 EBIDTA
Cr
2010-11
2011-12
114.01 Cr
167.73 Cr
35.79 Cr 51.07 Cr
64.04
24.75 Cr 37.66 Cr
48.68
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Expansion-Phase-I
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Location
Type
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Project Cost
Karur
Green Field
Solan
Green Field
Belgaum
Green Field
Jalgaon
Lease
Kullu
Lease
DC-Delhi
Lease
DC-Mumbai Lease
DC- BangaluruLease
347.54 Lacs
643.63 Lacs
571.01 Lacs
100.00 Lacs
125.00 Lacs
75.00 Lacs
75.00 Lacs
90.00 Lacs
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TOTAL
2,027.49 Lacs
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Summary
 Particulars
Cost
 Existing Units
Lacs
 Expansion Phase-I
 Expansion Phase-II
 TOTAL
 Equity
 Term Loan
 Subsidy
Project
2,458.14
2,027.49 Lacs
1,757.03 Lacs
6,242.66 Lacs
2,797.77 Lacs
2,283.53 Lacs
1,161.31 Lacs
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Product
Development
STRATEGY: MARKET DOMINANCE
THROUGH NATIONAL FOOTPRINTS
& PRODUCT DIFFERENTIATION
These 5 products make up 52% of consumers’ purchase basket
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Sourcing
SOURCING: AS A MEANS TO GET
BEST QUALITY PRODUCE AT BEST
MARKET PRICE
Contract Farming:Contract farming would be carried out through an agreement with
farmers. Typically, the farmer will produce established quantities of an
identified produce, meeting the quality standards and delivery schedule
set by the company. Prices will be set up depending on the product either
in advance or indexed to reference market(s). GAPL is already involved in
the contract Farming in Products like Carrots, Onions, Grapes, Baby Corn
etc.
National Sourcing Team:This team will be constituted at the Central level. This team will remain
mobile identifying the orchards at different places all over India. This
team will be involved in the sourcing of Fruits and vegetables across
India.
Guaranteed Off Take::In this model Global Agri Systems Pvt. Ltd. Will enter into a contract with
the large farmers or group of farmers having large acreage starting from
50 acres and above. GAPL will provide crop planning and technical
know-how and other support including critical inputs, to those farmers
for growing products, which will be marketed through company network
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Sourcing
SOURCING: AS A MEANS TO GET
BEST QUALITY PRODUCE AT BEST
MARKET PRICE
Contract Farming:Contract farming would be carried out through an agreement with
farmers. Typically, the farmer will produce established quantities of an
identified produce, meeting the quality standards and delivery schedule
set by the company. Prices will be set up depending on the product either
in advance or indexed to reference market(s). GAPL is already involved in
the contract Farming in Products like Carrots, Onions, Grapes, Baby Corn
etc.
National Sourcing Team:This team will be constituted at the Central level. This team will remain
mobile identifying the orchards at different places all over India. This
team will be involved in the sourcing of Fruits and vegetables across
India.
Guaranteed Off Take::In this model Global Agri Systems Pvt. Ltd. Will enter into a contract with
the large farmers or group of farmers having large acreage starting from
50 acres and above. GAPL will provide crop planning and technical
know-how and other support including critical inputs, to those farmers
for growing products, which will be marketed through company network
30
Market
Development
MARKETING: AS A STRATEGY TO INCREASE THE
VALUE REALISATION AND ENHANCING THE
INTRINSIC VALUE OF THE ORGANISATION
Central Marketing: The central marketing team will coordinate
with all the hubs. It will be involved from sourcing till the final
distribution and sales of the products. Core Marketing Strategies
will be developed and be repository of brand
Verticals: Separate Marketing verticals will be developed for the
five major crops like Onion ,Potato, Carrot, Tomato, banana.
Execution of all the activities from sourcing till sales will be done
by these verticals and coordination will be maintained with the
hubs
Packaging Concepts
Packaging design for the brand will reflect the brand's attributes
and positioning. The packaging design will be aligned to the
various product offerings
Distribution
•Distribution Networks at Chennai, Bangaluru, Mumbai, Delhi
&Kolkatta to be leveraged for supplies and be developed as Cash &
Carry points
Brand guidelines for marketing materials
A fixed family of colours with PMS, CMYK & RGB break downs.
Rules of Typography with fonts, weights & sizes for future use.
Appearance of logo/mark with placement position & size, etc.
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SYSTEMS &
PROCESSES
MANAGEMENT CONTROL TOOLS: Each unit will be an
Independent profit center, will have its own set of plans, strong
systems and processes & corporate level strategic planning &
monitoring
Business Planning
•Planning at two levels – Unit and Corporate
•Unit level planning -Volume driven, Target Oriented,
Responsibility for the top line & bottom line
•Corporate level planning - Policy driven, Strategic and long term
decision making, National co-ordination
Inventory Control & Sales
•Central MIS cell to monitor all the units for Inventory,
Procurement and Sales. Reporting on day to day basis
Accounts & Finance
•Day to day book keeping at the unit
•Corporate Finance Team to look after the capex, credit, internal &
statutory audits
•Frame policies and guidelines regarding book keeping formats
and accounting practices
Sourcing & Quality
•Corporate sourcing strategy based on National Marketing plan.
•Implemented by units
•Quality specifications, monitoring processes and guidelines to be
developed by National team
•Traceability to be ensured at all levels
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Risk
Management
RISK MANAGEMENT: AS MEANS TO REDUCE THE
HAZARDS AND STREAMLINE THE BUSINESS
PROCESS TO IMPROVE THE EFFICIENCY
Strategic Risk: Sourcing Decisions of what to source
and from where to source
Operational Risk: Risk In terms of Low Shelf Life of
Produce , Cold Chain Breakdown, Quality Issues
Market Risk: Market Fluctuations in Terms of Demand
& Supply, export market behavior
Financial Risk: Unexpected Changes in Prices or rates
Risk management cell will be constituted at corporate
level for live assessment of risks for each unit and its
seasonal operations and work out mitigation
strategies. This cell is expected to be operational by
2012
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Organogram 2012 –
Corporate (SCM)
Board /
CHAIRMAN
Managing Director
Chief Finance
Officer
Senior Manager
Finance
Internal
Auditors
Head
Marketing
Manager
Project
Implementatio
n
Manager
Logistics /
Distribution
Manager
Strategic Planning &
Inst Sales
Manager Quality
Assurance
Manager
MIS
Accounts
Executive
Regional Heads (Sikandrabad, Nasik, Ludhiana, Kolkatta),
Avan Agro
7 July 2015
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Amaya Food -Nasik
GRADING LINES
COLD STORE
PACK HOUSE
Privileged and Strictly Confidential
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Discussion with Stakeholders
Privileged and Strictly Confidential
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Nursery
Privileged and Strictly Confidential
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A Field Day In Nasik
Privileged and Strictly Confidential
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Sunshine -Sikanderabad
Amidst Growing Fields
Privileged and Strictly Confidential
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Improved Farm Equipment
ROTAVATOR
PNEUMATIC SEEDER
LASER LEVELLER
Privileged and Strictly Confidential
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Carrot Field
Privileged and Strictly Confidential
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Carrot – Just Harvested
Privileged and Strictly Confidential
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Indore Cold Store
Privileged and Strictly Confidential
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Your Partner in Agribusiness
Visit us at www.globalagri.com