SSRDP - Savanadurga Organic farmers Producer Company 9.9.22

 @Ashu Sikri (Unlicensed) @Vineet Singh @Gautam Mandewalker @Ravi Shankar Sharma (Unlicensed) @Amrita Das (Unlicensed) @Sai

Useful intel-

• Established in 2021

• Number of shareholders- 303

• Share capital – 3,50,000

• SFAC matching grant-3,00,000

• Doing 700 kgs of organic vegetable D2C  every week.

 Motivation to form FPC

• To realise better market price ( some of the BoD have been doing this B2B and D2C of fresh vegetables for a couple of years now)

• To scale up organic vegetable production- Good market

• Scope of value addition

• Scope for the introduction of equipment’s either for sale or for rent

• Scope for quality input supply.

• Govt support + CBBO support for 3 or more years/ 

The perceived strength of FPC

• -Good number of vegetable growers – 50% of the shareholders

• -Organic practices

• -Diverse crops

• -Proximity to Bengaluru

• -Trust among various stakeholders. 

Top 4  business propositions- FPC has prioritized

Rank 1- Vegetable Supply ( d2c at the moment + b2b in the future) . They have been doing this activity for a couple of months of now. They have got very supportive consumer base in Bengaluru. FPC wants to (please read this as a board) scale this activity which is quite possible with digitizing the data on both production and customer end. FPC has a reasonable infrastructure to carry out this activity. They are looking for Vehicle support as they are spending a significant portion of the revenue on transportation.

Rank 2- Value addition and food processing (Perishables +Non perishables), like dehydrated vegetables, solar dried vegetables , super food etc.

Rank3- Input Supply-saplings/seeds/equipment’s/Grocery

Rank4-Oil extraction -Groundnut , Coconut and Castor 

About Vegetable trading- Direct to Consumers ( Apartments /schools)

• About 15 active farmers providing vegetables (the highest being 25)

• 3 runs every week, Thu/Sat/Mon About 700 Kgs per week about 30SKUs

   Challenges-

• No visibility to the availability of the vegetables. Gets data only after making calls or personal contacts.

• There is no benchmark to decide on purchase price. (at present, prices from other organic vegetable traders are used to arrive at purchases from the farmers)

• Not sure how to fix the sale price. (at present it is keeping some margin over the expenses)

• Not sure about the quantity they (FPC) procure for each run. There is no mechanism to analyse the historical data. The members who are actively involved in the sales try to arrive at procurement quantity which is most of the time guestimate.

• Documentation of transactions is manual and difficult to summarise and get some analysis.

• Logistics is expensive and eats into the earnings ( not optimised).

• Stories are communicated when they meet customers in person.

• Communication with the shareholders -Plan, strategy, requirements etc

Opportunities-

• Very supportive customer base in Bengaluru and there is good demand for the vegetables

• Good scope for B2B supplies. (Organic vegetables)

• A good base of vegetable cultivators

• Good price realization (Compared to conventional Mandis)

• FPC has support for the next two to three years to meet admin expenses.

• Scope of value addition.

For funding platform

• Shared assets like logistics + Cold storage.

• Membership engagement- Getting involved in the Business + Business referendum