UTFORSK INTERNSHIP

PROJECT REPORT ON: Promotion and marketing of Odisha

coffee – UMBC (A social enterprise for urban poor)

Name: Rupam Pratikshya Benya

Reg no : 200202140004 MBA (ABM)
 ACKNOWLEDGEMENT

It is with a sense of gratitude; I acknowledge the efforts of entire hosts of well-

wishers who have in some way or other contribution in their own special ways
to the success of this project.
I would like to thanks my Project mentor at UMBC Mr. Subrat Das who have
been very helpful in the completion of this project.
I sincerely express my thanks to my Project Guide Prof. Subhendu Mishra for
his valuable guidance, intellectual suggestions and constant help in a lot of
various ways during project course.
 Content
1. About Organization
2. Last Year Information
3. People Involved in UMBC Development & Sustaining Coffee Enterprise
4. My Role
5. Introduction
6. History of Coffee Cultivation in India
7. Coffee Cultivation in Odisha’s Koraput
8. Value Chain of Koraput Coffee
9. Supply Chain of UMBC Coffee Enterprise
10. Details about Last Year Coffee Procurement
11. Demand for UMBC Coffee
12. Market Analysis for UMBC Coffee
13. Business Plan for Coffee Shop
14. Field Survey Data
15. Role of Coffee Board for Tribal and Non- tribal Coffee farm
16. Role of Soil Conservation Department for Tribal and Non-tribal Coffee
farms
17. Role of TDCCOL for tribal and Non-tribal Coffee Farms
18. Gender Based Work Division of Labour
19. Challenges Faced by Coffee Farmers
20. Learning
21. Conclusion
About Organization:
The Urban Micro Business Centre (UMBC) is the flagship project of Centurion
Science and Technology Entrepreneurship Facilitation Centre, an independent
Section 8 (not for profit). Company set up in Odisha by Centurion University
Technology and Management (CUTM), in order to inculcate enterprise and
develop entrepreneurship.
In 2013, the project UMBC was set up with the support of Department of
Housing & Urban Development and Bhubaneswar Municipal Corporation
(BMC) and Ministry of Housing, Urban & Poverty Alleviation, Government of
India.
The land upon which UMBC facilitates are constructed, belongs to the General
Administration Department. It was handed over under permissive possession to
the BMC, which in turn handed it over to CUTM for the project. The land for
this project has been given by the Government of Odisha through the local
Council.
This model has been designed to address the poverty and livelihood challenges
through nano-novo-mini-micro enterprises and entrepreneurship.
It was recognized by the National Skill Development Agency, Government of
India, as one of the 5 most promising models for urban poor skill and
development in the country, which should be replicated in other states and taken
up for support by Government Departments and Agencies.
This project has been declared as “Deakin-Centurion Centre for Social
Entrepreneurs”, under the Overseas Exchange and Learning Programme of
Deakin University and other Australian University.
Last year information:
The coffee businesses were temporarily closed and nearly all of these closures
were due to COVID-19. Respondents that had temporarily closed largely
pointed to reductions in demand and employee health concerns as the reasons
for closure, with disruptions in the supply chain being less of a factor. On
average, the businesses reported having reduced their active employment since
march .

People Involved in UMBC Development and Sustaining the Coffee

enterprise
Coffee Project Team - Lead by Women
1. Jharana Barik: Supervisor: Procurement, Stock and Processing
2. Sushanti Rana & Sabita Pradhan Sun Drying, Destoning, Cleaning and
Processing
3. Reena Saha: Packing and Labelling
4. Ashanti, Rashmita, Kajol, Subrata Kumar Behera, Chita Ranjan Bhanja:
Brewing and Retailing
5. Ananta Ch Mahanta: Machine Maintenance and Servicing

My Role
Understanding – Coffee as a Beverage and Enterprise
Understanding and Supporting – Coffee Processing and Packaging – towards
Quality Assurance
Promotion and Marketing of UMBC’s Odisha Coffee in Bhubaneswar
Visited district coffee board office and collected the data of coffee growers and
met them to know about how they are cultivating coffee and what are the
challenges they are facing from nursery to selling.
Study about entire value chain of Koraput coffee and supply chain of UMBC
coffee enterprise and prepared a business plan.
Introduction:
In India, coffee (Botanical Name: Coffee Arabica Coffee Robusta; Family:
Rubiaceae) has a place of pride among plantation crops grown and is
traditionally cultivated in Odisha and other states like Karnataka, Kerala, Tamil
Nadu Andhra Pradesh, Assam, Manipur hill slopes in the past 150 years.
History of coffee cultivation in India: - In the Indian context, coffee growing
started with an Indian Muslim saint, Baba Budan, who, while returning from a
pilgrimage to Mecca and from there to Mocha – a port city in Yemen and a
major coffee hub and smuggled seven coffee beans (by hiding them in his
beard) from Yemen to Mysore in India. He planted them on the Chandragiri
Hills (1,829 metres), now named after the saint as Baba Budan Giri in
Chikkamangaluru district. It was considered an illegal act to take out green
coffee seed out of Arabia. As number seven is a sacrosanct number in Islamic
religion, the saint’s act of carrying seven coffee beans was considered a
religious act. This was the beginning of coffee industry in India, and in
particular, in the then state of Mysore, now part of the Karnataka State. This
was an achievement of considerable bravery of Baba Budan considering the fact
that Arabs had exercised strict control over its export to other countries by not
permitting coffee beans to be exported in any form other than as in a roasted or
boiled form to prevent germination. Systematic cultivation soon followed Baba
Budan’s first planting of the seeds, in 1670, mostly by private native Indian
owners and the first plantation was established in 1840 around Baba Budan Giri
and its surrounding hills in Karnataka and from there it spread to other areas.
COFFEE CULTIVATION IN ODISHA’S KORAPUT
Odisha’s Koraput have prospered in recent years turning coffee farming from
shifting cultivation. Coffee farming is transforming the hilly tribal-dominated
villages of Odisha’s Koraput district. It is bringing about a qualitative change in
the lives of around 5,000 tribal families. Koraput district, located at a height of
3,000 feet above sea level, is ideal for coffee cultivation due to its cool climate
and rainfall. In Odisha total coffee is being cultivated in 6 districts i.e., Koraput,
Rayagada, Kandhamal, Kalahandi, Gajapati, Keonjhar. In Koraput district
coffee cultivation is a viable alternative to podu or shifting cultivation for the
tribals of Dasabantapur, Laxmipur, Nandapur, Semiliguda and Patangi blocks.
Tribals in Koraput had a number of reasons to prefer coffee over podu. Coffee
growers had a large scope for profit as they harvested 160 kilograms of clean
coffee per hectare. The rate of a kilogram of coffee fruit was Rs 35, whereas the
price of a kilo of clean coffee was Rs 210.The best thing about coffee farming
was its low maintenance and low-cost factors. Coffee board provide coffee
seeds to the farmers to grow coffee plants. A coffee plant takes four years to
grow and each year, farmers harvest coffee fruits from the plants. The total
area under coffee cultivation in Koraput has increased because of the lucrative
prices the farmers received for the last produce.
TDCCOL (Tribal Development Cooperative Corporation of Odisha Ltd) now
marketed Koraput coffee and the Coffee Development Trust at Koraput had also
taken over 300 hectares of new and old coffee plantations. Tata coffee has
recently agreed to market coffee grown in the Koraput district in national and
international markets.
VALUE CHAIN OF KORAPUT COFFEE

Fig 1: Entire value chain of Koraput coffee

Value chain is a graphical representation that shows major actors and their
relationship along with the sequence of activities involved. In the process of
transferring coffee seeds from farm to the consumer cup it undergoes various
forms and upgrades its value at every step as it passes through different actors
involved in coffee value chain.
 In this the major actors involved in the coffee value chain where the production
process for coffee requires several inputs, including physical inputs (seedlings,
fertilizers and sprays), land and labour. The qualities of the various input
suppliers, coffee nurseries, coffee producers’ groups, farmers, pulping
operators, coffee producers’ associations, cooperatives and a private planter as
the major actors contributing in the coffee value chain. The movement of fresh
ripe cherry from production site to consumer cup transforming into various
forms (i.e. fresh ripe cherry, parchment, green beans, roasted beans, coffee
powder, brewed coffee) as it passes to upstream marketing actors within the
value chain structure is like a long journey but in this study the value chain
network of coffee in the study area was very short and simple because 100% of
the coffee producers were found selling their fresh ripe cherries and coffee
beans to TDCCOL (tribal development corporative corporation), Open market
and Trader.
Production: During the production stage, coffee trees are cultivated on small
farms and it takes approximately 3-4 years to for a tree to become productive.
coffee supply is produced on small coffee farms of 1-5 hectares, usually using
family labour, although occasionally additional labour is hired during harvesting
periods. Mostly Arabica coffee are cultivated. Since Koraput district climate
and geography are suitable for the production of Arabica coffee.
Processing: During this stage, the coffee cherry is cured and milled to remove
the fruit from the bean by the farmer. Curing occurs either through dry or wet
processing. Dry processing involves exposing the coffee cherries to the sun to
dry for one month, at which point the fruit becomes brittle and can be easily
removed from the bean. Under wet processing, the cherry is immersed in water
in order to soften the outer layer, and the fruit is removed. Wet processing is
typically seen to impart a better flavour to the coffee, which often translates into
a higher price. After curing (dry or wet), the bean is milled and washed in order
to remove any remaining layers of skin, and the resulting product is green
coffee. Actors involved in processing can vary. In some cases of tribal farmer,
they process the cherries themselves, especially with dry processing. Private
planters usually process their beans on-site.
Trade: More of coffee beans are trade to different state mainly in Karnataka,
and trading companies play an important role in coffee. Traders purchase green
coffee mostly from private growers and sometimes tribal farms. The official
coffee price is based on the New York Stock Exchange (NYSE) thus, the price
fluctuates on a daily basis.
Marketing: After collecting the coffee from farms TDCCOL sell the coffee in
their own outlets, ecommerce platform(amazon). The three main channels
through which Koraput coffee is marketed are coffee outlet, amazon
(ecommerce), and cafe. They have 12 coffee outlets in different district in
Odisha i.e., at Bhubaneswar (5), Paralakhemundi (1), Berhampur (1), Rourkela
(1), Keonjhar (1), Koraput (2), Puri (1) and Cafe (2)
SUPPLY CHAIN OF UMBC COFFEE ENTERPRISE

Fig 2: Supply chain of UMBC Coffee Enterprise

Supply Chain is an integrated network between the supplier, distributors, and

intermediaries all the way to the final consumer. The length of a supply chain
depends upon a number of factors, one of them being the product itself.
The fruits are further processed by drying them under the sun or by a machine
after removing their pulps. After this stage the beans are exported to the desired
parties.
The parchment layer of the bean is removed by machines and then further sorted
in three sub steps Hulling, Polishing and Sorting.
These Beans that come out of the Milling process are known as green coffee;
these have a higher price than the beans that are exported after the Processing
stage.
This is the process that transforms green coffee into the brown beans that we are
familiar with, there are different methods and machines for roasting green
coffee. This process is usually done at the selling place as the roasted beans are
better when served fresh.
Details about last year coffee procurement
Umbc have different planters contact details given by coffee board. The coffee
beans are harvested during November to December at that time UMBC contact
with different planter and Mr. Subrat Das directly go to the farms and buy the
coffee as to avoid exploitations before buying coffee from the farmers he gets
touch so as to checked the moisture level, quality, grade of coffee bean. They do
not negotiate the price because per kg of coffee bean price is already set by
coffee board of Odisha. Last year they buy around 1200 to 1500 kg of coffee
from farm and per kg of coffee price range is between 220 to 260 Rs. Various
actors are involved during procurement like labour (20rs per bag), transportation
cost was Rs 22000. Previous year due to Covid-19 the coffee business was not
gone so well they face financial crises, the products is also got damaged, the
outlets were unable to sell the products.
 For scaling up of coffee enterprise at UMBC at first, they use to
procure100kg -200kg gradually they increase their quantity and transfer
through bus. As last year they brought 1200kg-1500kg so for this they
transfer truck (22,000rs) and this year they planned to buy around 3000kg,
and they have already contact to planters.
 In the view of sustainability and profitability this much of (1200- 1500kg)
coffee is not enough so around 20,000 to 30,000kg of coffee is required
for that he need 30,0000Rs investment to scale up the enterprise.

Demand For UMBC Coffee

Although tea is the much-preferred drink in Odisha, the demand for coffee has
been rising rapidly in both the rural and urban areas.
Market analysis for UMBC Coffee
Coffee is the second largest commodity market next to oil, and growth is
expected to continue at a strong pace for the future. During the study of outlet
handling, we got to know about that customer behaviour for coffee and their
preference and expectation. We could find out person appreciating the concept
for selling our own coffee.
Business Plan for a Coffee Shop
Executive summary:
During the study we could analysis that for the sustainability and profitability of
the enterprise with the partnership of Umbc. we will set a coffee shop in their
outlet in Bhubaneswar.
Coffee shop is a place that provides various types of drinks, especially coffee.
This coffee shop not only provides drinks but also provides various types of
food. Th
Background:
Coffee is a type of beverage that comes from the processing and extraction of
coffee beans. In general, there are two types of coffee beans, namely Arabica
(the best quality & we preferred) and Robusta.
Business concept:
The coffee shop concept is classic theme, there are several concepts we will
offer here:
 Will promote UMBC coffee
 Original & Organic product
 Satisfying service
 Comfort is also maintained
Vision:
 Promote UMBC coffee in Odisha so that every Odia coffee lover can have
Odisha grown coffee.
 Creating a shop as a place with comfortable and quite atmosphere that
everyone can enjoy.
Mission:
 Introducing & promoting UMBC coffee.
 Also introduce the shop as a best place to enjoy coffee
 Presenting as a comfortable and quite place
 Providing the best service to every customer
Management Team:
We are currently a fresh graduate who can deal with financial aspects of
business, we will give our best efforts to learn this business which was big turn
for us and we willing to try over and over, so our business does not stop in the
halfway. We will always continue to give our best to our customers.
SWOT Analysis:
1.Strength
 High service level
 Focusing on customer taste
 Best variety of 100% Arabica coffee from tribal farm.
 Friendly environment
2.Weakness
 Weak financial reserves
 Limited social media success
 Marketing challenges
3.Opportunities
 Promote UMBC coffee
 Develop customer
 Introduce online & telephone order system
4.Threats
 Ability to meet cash flow requirements
 Limited profit levels
 Increasing in supplier costs
 Poor rating on review
 Customer becoming more price sensitive
Product and Service:
 we will offer a variety of coffee drinks that are safe to drink and
comfortable to stomach. Like cappuccino, cafe latte, cold coffee and black
coffee.
 In addition, the coffee shop will also sell non-coffee drinks for customers
who cannot enjoy coffee. Like Choco drinks and smoothies.
 All menus will be sold at affordable prices so that it will suit all pockets.
Target Customers
Our main target customers are the coffeeholics.
Coffee ingredients

Cold coffee Coffee latte Coffee cappuccino Black coffee

Black coffee Black coffee 2 tsp. Arabica ground 2 tsp. Arabica
coffee ground coffee
Water Sugar 2 tsp. white sugar Hot water
Sugar Full cream milk 100ml full cream milk Sugar (if required)
Full cream milk

Marketing and promotion:

 Craft a brand image to stick out among the crowd
A brand identity is what the audience recognize in unique way to promote our
business whether it be reputation, an ambience, a logo a product. These factors
work together to create our coffee shop holistic identity.
 Promote our coffee shop when and wherever we communicate
We will make some business cards to promote our coffee shop. The content of
the business cards must be including our coffee shop name, logo, contact
information (including web address). Will also add a section with links for
Facebook, Tweeter and Instagram so that the recipient can connect with us on
social media.
 Use social media to promote coffee shop
Facebook, Twitter, Instagram and YouTube are great way to promote our coffee
shop through social media. To get started with social media, we can create a
social media plan like how to make our customers have interest to our product
by make some edits of our coffee design, photos of our ambience, or record
video promotions like services and post them on any platform.
 Promote the coffee shop by blogging and writing articles:
Well written articles can provide free advertising and build positive word of
mouth. We can write a short biographical note about the owner and the coffee
shop to go with the article.
 Give out free sample as coffee promotion:
Besides using freebies as promotions, we can also use them regularly as
customers ‘reward’. With small, inexpensive things could we give out together
without product and service that will get our customer thinking good thoughts
about our coffee shop and products.
 Promote our coffee shop though our activity
With any kind of group activity, there’s always the opportunity to promote our
coffee shop by letting other people know what we do and how it could benefit
them. This doesn’t mean that we talk about nothing else, but there are bound to
be chances to talk about our coffee shop that crop up during normal
conversation.

Financial Budget:
Expenditure Cost
Construction cost 1,75,000 /-
Including design/drawings,
flooring, duct work,
surfaces, tiling, panels,
paint, GC fee (assumes TG
provides farming,
plumbing, electrical,
HVAC, water, grease trap)
Kitchen Equipment 110,000 /-
Tables/Chair 25,000 /-
Signage 8,000 /-
POS/Office 12,000 /-
Electronics/Security/Music
License 12,000 /-
Insurance 2,000 /-
Smallware’s 15,000 /-
Opening inventory 5,000 /-
Pre-opening hiring/training 3,000 /-
Web Development/ Social 7,000 /-
Media set-up
Opening Marketing Costs 5,000 /-
Initial Opening Capital 20,000 /-
Total = 400,000 /-

Field survey data

We have visited 4 villages and met with 5 farmer family from each village i.e.,
Salmanguda, Lauriguda, Punjisil and Jamkoliguda during the survey we got to
know about their caste/tribe, qualification, family member, occupation, monthly
income, land holding size. In total we met 20 farmer family from them 3 family
belong to Paikka caste 1 from Harijan and other 16 were Adivasi. The state
government had provided forest land to many of the tribal families for
cultivating coffee. At Punjisil village the total land of coffee cultivation is
20hectare and 50 number of farmers working there. The coffee board provide
1acre land to each farmer (most of them are beneficiary) and in that land both
husband wife works together daily. At Salmanguda village the total land provide
by coffee board is 40hectare to 20 family, each farmer family (husband & wife)
working in 2acre land. At Lauriguda the total land provide to the coffee
cultivator by coffee board is 24 hectares to 22 farmers, each farmer working in 2
acres. The Jamkoliguda Sonata Plantation coffee farm is a private farm the total
land is about 40acre and 4 to 5 number of workers working there at daily basis
each one their salary is 5000 to7000 rupees. Coffee board provide all the
technical guidance, equipment support, training and all cultural operation to the
farmers. After harvesting the coffee (ripened cherry, dry parchment) the
TDCCOL directly collect the coffee from them at 35Rs per kg dry parchment
coffee. The tribal farmers also have open market facility so that they can sell the
coffee at their own price and get benefited. The private planter directly
communicates with the traders and export the coffee in different states with
price set by NYSE (New York Stock Exchange).
Village 1: Salmanguda, Koraput
Farmer Caste/ Qualification Family Occupation Monthly Land
name Tribe member Income Holding
Suresh Paikka 7 class
th
5 Coffee
Swami members cultivator 7,500 /- Landless
Haribandhu Paikka 6 class
th
5 Coffee 7,500 /- Landless
Guntha members cultivator
Maheswar Paikka ----- 6 Coffee 7,500 /- Landless
Paika members cultivator
Dulabha Adivasi ----- 3 Coffee 7,500/- 1 Acre
Badanayak members cultivator
Chaitan Adivasi ----- 6 Coffee 7,500/- 2 Acre
Badanayak members cultivator
Village 2 : Lauriguda
Farmer Caste/ Qualification Family Occupation Income Land
name Tribe member Holding
Bandhu Adivasi ------ 5 members Coffee 20,000/- 1 + 2 Acre
Jani Beneficiary per year

Damu Jani Adivasi ------ 6 members Coffee 25,000/- 5+2 Acre

Beneficiary per year

Ram Dash Adivasi 10th class 4members Coffee 30,000/- 2Acre

Beneficiary per year
Kasaba Adivasi 7th class 4members labour 400- landless
Jani 500per
week
Raghu Adivasi ------- 5members labour 400- landless
Muduli 500per
week
Village 3 : Punjisil
Farmer Caste/ Qualification Family Occupation Income Land
name Tribe member Holding
Dhana Adivasi ----- 5 Coffee 200/- per 1 Acre
Badanayak members Beneficiary day
Sudaba Adivasi 7th class 4 Coffee 15000/- 1 Acre
Badanayak members Beneficiary per year
Mati Adivasi 2nd class 5 Coffee 200/- per 1 Acre
Badanayak members Beneficiary day
Krushna Adivasi 7th class 2 Coffee 200/- per 1 Acre
Badanayak members Beneficiary day
Bagha Adivasi ----- 2 Coffee 5000/- per 1 Acre
Badanayak members cultivator month
Village 4 : Jamkoliguda, Sonata Plantation
Farmer Caste/ Qualification Family Occupation Income Land
name Tribe member Holding

Bideshi harijan 5th class 4 members Coffee 7000/- per Landless

Bihari cultivator month

Meera Adivasi ----- 6 members Coffee 5000/- per landless

Muduli Harvester month

Domu Adivasi 8th class 7 members Coffee 6000/- per Landless

Muduli Harvester month

Taramani Adivasi 4 members Coffee 5000/- per Landless

Muduli Harvester month

Gita Adivasi 5th class 6 members Coffee 6000/- per landless

Dishari Harvester month
Role of coffee board for tribal and non tribal coffee farms :
 Supply of quality seed of suitable varieties.
 Provide technical assistance to the growers and training of personal soil
conservation department.
 Provide counterpart financial assistance towards expansion activity.
Role of soil conservation department for tribal and non tribal coffee farms:
 Identification of beneficiaries and suitable land.
  Advance shade planting.
 Procurement of coffee seed from coffee board and rising of coffee
nurseries.
 Assisting growns in planting of coffee and all cultural operation.
Role of TDCCOL for tribal and non tribal farms :
 Procure coffee from both the tribal and non tribal farms at fair and
remunerative price and arrange for their marketing.
 Prevent Exploitation from Middlemen for tribal farmers only.
 They procure maximum coffee from tribal farms and processed it and sell
at outlet ,cafe ecommerce platfrom like amazon.(for 100gm the price is
Rs120 and for 250gm the price is Rs 299.

Gender based work division of labour

MEN WOMEN
1. Nursery care 1. Nursery care
2. Plantation 2. Help in plantation
3. Taking care of farm 3. Harvesting
4. Harvesting 4. Milling
5. Milling 5. Cleaning
6. Negotiate the price
7. Marketing (Haat)

During the field visit we analysed that both men and women labour taking care
of the coffee nurseries, generally man are involved in all aspect of work as
compared to women. Mainly in coffee plantation men get involved, women
only help them and rest of the time men are taking care of the farm. During
harvesting and milling both women and man together get involved and we
found maximum women are involved in plucking ripened cherries. In Trible
farms negotiation of price and marketing is done through man as most of the
women are engaged in farming and household work so, they are less aware and
less involved in price negotiation and marketing.
Challenges faced by coffee farmers:
  Not able to take proper care all the time as they are engaged in farming.
 Low prices and unstable coffee prices leading to price fluctuation in the
market which demoralizes the farmers.
 Farmer not getting their exact return
 Pest and disease attack.
 Unstable climatic condition

Learnings
Learn to interact with officers.
Understood the scenario of coffee in Koraput district.
Learned about interact with farmers and their families.
Learned about challenges/problems faced by coffee cultivators.
Learned about the entire value chain of Koraput coffee.
Learned about the supply chain of UMBC coffee enterprise.
Learned about how to immerse customers with our brand.
We study about customer behaviours during promotion of our coffee.

Conclusion
We both assigned in UMBC coffee project. In this project we visit different
coffee farms, TDCCOL, Coffee board, in Koraput. At first, we visit coffee
board and from them we got the coffee cultivators contact details and met with
coffee growers and collected details about them like how they are cultivating
coffee, who supports them, how they are marketing, in short, the entire value
chain of Koraput coffee. At UMBC office we learned the total process of supply
chain. We involved in outlet handling and analyzed customer behavior and
response towards UMBC coffee. From the entire study to sustain the coffee
enterprise we need to procure 30000kg of coffee for the flow to coffee
enterprise we prepared a coffee shop business plan.