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Enterprise

IRA
BUSINESS

LOGIC

The Problem
Bishunpur, Gumla Struggling marginal farmers with
low bargaining power
Unfavourable soil conditions.

The Opportunity
Shatavari - drought friendly
Greater bargaining power of FPO

The Method
FPO increases the bargaining
power of farmers and market
linkages; The higher margins are
used to incentivize farmers and
reinvestment.
WHY SHATAVARI

EVALUATING SUPPLY
Estimating what can we produce
REACHING
Estimating how much can we
OUT TO
produce EXPERTS

What options do we have?


1 2
ENSURING MAXIMUM
FEASIBILITY ADVANTAGE
CUSTOMERS?
How do we shortlist from 102 Elimination Considering
given options? due to plant
specific
net profit
per acre
constraints
WHY SHATAVARI?

Other Herbs Farmers' Intrinsic


(eg. Kalmegh, Palmarosa, High Input Low Profit
lemongrass)
Factors

Cultural and
Shatavari Low Input Favourable Profit Motivational
Factors
SHATAVARI

MARKET

Product Consumers Market Attraction

Industry Size - INR 626


Suppliers and 3rd
Billion in 2022,
Organic Herbal farming party manufacturers
Expected INR 1,824 Billion
(primary category) of Ayurvedic/herb-
by 2028

based products
Dried white shatavari
roots and powder (sub -
category) Shatavari Market demand
foreseen growth is CAGR
of 3.1% - USD 42.3 million
(2022 - 2027)
REQUIRED GROWTH

CONDITIONS

SOIL IRRIGATION
Current Water sources- Rainfall, Koel river,
Required pH- 6 to 8
wells
Gumla soil pH- 5.5 to 6 Required rainfall: 800-1000 mm
Can grow in red soil in Gumla
Average rainfall in Gumla- 1100 mm
Can also grow in shallow and rocky
Drip irrigation setup costs (if required)-
soil
₹6000 per acre after subsidy

CLIMATE MANURE
Grown in warm, tropical and humid Organic manures like vermi-
areas
compost and bio-pesticides like
Can be grown in open areas or in
neem used
shade
Usage- 10 to 12 quintal per acre
High moisture may result in root
Cost- ₹ 5/ Kg
rotting

SHATAVARI CULTIVATION
Training SOP for the farmers will include the following steps

Cultivation
Plantation
Land Irrigated 2-3 hours after
sowing.
Preparation Done in June-July, Once a month during winter
Nursery when seedlings attain a Frequent weeding in early
Management height of 45cm. growth period.
Tilled, harrowed,and Plants are sown on
dug up to 15cm. ridges 60X60 cm apart.
Nursery size: 500 sq. feet 4-5 tonnes/acre of 10,000 plants per acre
per acre of land. organic manure is
Digging land up to 30- applied
40cm.
Seeds sown 5cm apart in
April-May.
Cost = Rs. 5-6/plant
SHATAVARI CULTIVATION
Training SOP for the farmers will include the following steps

Cultivation
Plantation
Land Irrigated 2-3 hours after
sowing.
Preparation Done in June-July, Once a month during winter
Nursery when seedlings attain a Frequent weeding in early
Management height of 45cm. growth period.
Tilled, harrowed,and Plants are sown on
dug up to 15cm. ridges 60X60 cm apart.
Nursery size: 500 sq. feet 4-5 tonnes/acre of 10,000 plants per acre
per acre of land. organic manure is
Digging land up to 30- applied
40cm.
Seeds sown 5cm apart in 60cm
April-May.
Cost = Rs. 5-6/plant
PROCESSING CYCLE

Manual peeling
18 months after sowing Grinding machine available
Can be done with hands and knife
November-December Currently on small scale -
Removing string like structure in
Washed and cleaned with water the middle 2000kgs /50000kgs
10000 kgs per acre Rate: 2kg/hr/person Seiving is done simultaneously

Harvesting Peeling and Powdering


Cutting

Boiling Drying Storage



Necessary for peeling post storage Sun drying


Root Storage in
50kg gunny bags

5-6 days
45 mins - 1 hour in any standard Moisture control in warehouse to

cooking vessel 10,000kg fresh -> 1000kg dried


avoid fungi infestation.
Wood can be used as fuel

For The Farmers


value addition better livelihood
farmers nursing, cultivating, harvesting,

peeling and drying processes
mobilizer guide and assist the farmers
during the entire season

Depending on the order, the farmers' produce


sold to Vikas Bharti can be further processed into
a powder using their existing machinery at the
SFURTI Production Unit.
INTERCROPPING WITH KALI TULSI

1. Similar cultivation requirements


Sub-tropical or warm climate
700mm rainfall
loamy, alkaline soil with pH 5-7
No additional irrigation during the rainy season

Grown during monsoon season with a cycle of only


3-4 months.

2. Highly profitable and suitable


High demand in the food-processing and herbal
industry.
Profit of 18-20k per acre will maintain cashflow.
Not Prone to serious pests or diseases.
A small plant which does not take up a lot of space
or nutrients.
WAREHOUSING AND TRANSPORTATION

Standard Premier

Vishakhapatnam
Warehousing
A new warehouse is planned to be
constructed in Gumla to provide a collective
storage facility for all the produce collected
Presentations are tools that
from the farmers. can be used as.
Chandigarh The cost is estimated to be Rs. 10,00,000,
including the 30% subsidy that we can avail
from the government for 1000 sq. feet.

Transport and Logistics


Ahmedabad
Gumla to Ranchi: Trucks
and travels
0 100 200 300 400 500
National: By trains

Transportation costs from Ranchi by train per


100kg of shipment
Experimental Model: Yellow Shatavari

Step 1

Cultivate Yellow Shatavari on the 1/2 acre land owned by Krishi Vigyan Kendra,
Bishunpur, Gumla in year 1.

Step 2

Analyse this new crop's costs, yield, revenue and subsequent profitability.

Step 3

Encourage farmers to start cultivating Yellow Shatavari, as it is projected to fetch


higher prices in the market in the coming years.
Farmer Producer Organisation
Legal Entity for, by and
Cooperative Structure Profit Sharing
of farmers

Need for FPO


Lower Cost of
Aggregating Cheaper Better Selling Price
Transportation,
Demand for Inputs Procurement per Unit
Production
STRUCTURE OF THE FPO
All members of the FPO, ELECTS The Board or Executive Committee is
including farmers .
GENERAL BODY BOARD elected by the General Body.

SUB COMMITTEES TECHNICAL Offers technical guidance, advice,


SUPPORT and training to FPO members.

PRODUCTION AND FINANCE AND TRAINING AND


SUB COMMITTEES
MARKETING AND SALES SUB COMMITTEES SUB COMMITTEES
PROCESSING ACCOUNTS CAPACITY

Organizes training
Focuses on Manages financial
Provides guidance to programs,
developing market aspects of the FPO,
farmers regarding workshops, and
linkages and including budgeting,
cultivation practices, awareness
coordinating sales. financial reporting,
quality control, and campaigns for
Works closely with and coordination
post-harvest farmers to enhance
buyers, processors, with financial
management. their skills and
and retailers. institutions.
knowledge.
Roles and Responsibilities of Producers'
Organization Promoting Institute(POPI -NSDC)

Cluster identification Resource Mobilisation

Diagnostic and Feasibility Development of Management


Studies Systems and Procedures

Business Planning
Business Operations

Mobilisation of Producers and


Registration of FPO Assessment and Audit
Employment for Cultivation
We have taken an average of half an acre of land
per farmer. Presentations are tools that
NUMBER OF EMPLOYEES PER
ACRE
6
can behas
On average, each farmer used as.
3 working people in
their family.
NUMBER OF EMPLOYEES FOR
300
50 ACRE
Since each acre of land produces 10,000 kg of fresh
and thus 1,000 kg of dried Shatavari which we will
TOTAL INCOME GENERATED BY
50,00,000 purchase at Rs. 100 per kg. For, 50 acres of land, we
FARMERS
have 50,000 kg of dried shatavari and thus we will
pay Rs. 50,00,000 to the farmers.
Training Structure
Farmers will be trained in 2 sessions of 7 days each.

MARCH SESSION

OCTOBER SESSION
Initially, they will be trained in sowing, Secondly, they will be trained in the
harvesting, irrigation, nursery processing of dry Shatavari. These
management, land preparation and processes include boiling, peeling, and
transplantation. drying.

This training is given by Vikas Bharti and the experts who train

are available at Vikas Bharti.
Training is imparted through the SHG(Self-Help Groups)
structure. Here, we train 1-2 members of each group, and then
they impart that information to others.
Skilled Employees

JOB TITLE PRE-REQUISITES JOB DESCRIPTION

Diploma in IT, language


GENERAL MANAGER Client Manager and Computer Expert
fluency(English and Hindi)

ACCOUNTANT B.Com Basic Financial and Taxation Roles

Quality Management supervisor,


MOBILIZER B.Sc. Agriculture
onboarding and motivating farmers
Employment Schedule
Hours of Employment

The total hours of employment


provided
First year - 2,25,000 hours
Second year - 6,33,350 hours
Third year - 6,33,350 hours

Government Schemes
Paramparagat Krishi Vikas Yojana (PKVY)
Pradhan Mantri Kisan Samman Nidhi
Yojana (PMKSN)
Small Industries Development Bank Of India
(SIDBI)
Kisan Credit Card (KCC)(already available)
National Medicinal Plant Board (under
AYUSH)

Detailed information about each government scheme is mentioned in the doc.


Government Certifications
Using these schemes where applicable, we
Voluntary Certification Scheme for
will apply to either of the following Organic
Medicinal Plants from NMPB, in
certifications:
collaboration with the Quality Council of
NPOP from APEDA under Ministry of
India (QCI), for medicinal plants based on
Commerce and Industry, Government of
Good Agricultural and Collection
India
Practices
PGS - India from Ministry of Agriculture
and Farmers Welfare

Detailed information about each government scheme is mentioned in the doc.


GAUGING DEMAND
Forming a Database of Try to convert this into a
third - party If asked, send periodic contract for
manufacturers and other samples atleast 2 cycles.
ideantified clients

Contact Knowing the Sending samples Towards Sales Contract


Database Demand
CUSTOMERS?

Calling or Sending the Finalize price and qty.


catalouge of current produce
with details and confirm
interested clients
THE 4PS OF MARKETING

PLACE
PRODUCT Where?
03
White Shatavari Roots Northern, Western and
Root Powder Eastern India

04

PROMOTION
PRICE
Conferences, Blogs,
150-200 Rupees/Kg
02 publications, social media
and newspapers

01
WHERE IS THE MARKET?

NORTH

UP MP Punjab Haryana Bihar Delhi

SOUTH
PRODUCT

WHITE SHATAVARI ROOTS


ROOT POWDER

QUALITY
Grade A
PACKAGING
Root Powder = HDPE Drums, packets
COSTING Shatavari Roots = Jute or Gunny Bags

HDPE Drums- 250 Rupees 25 Litres


Gunny bags- 35-40 Rupees, for 50 kg bag
BRANDING
Minimalistic Logo and Design
LABELLING
Legal Regulations QUANTITY
Essential elements 40-50 Kgs: Gunny Bags
25L: HDPE Drums
POTENTIAL COMPETITORS

1. Al- Fiza herbals Item 7 Item 1


14.3% 14.3%

Adhinath Trading 7.

2. Biotech Creations
Item 6 Item 2
14.3% 14.3%

Ayushadhi 8.

3. Herbal Co-creations
Herbal and
9.
Item 5 Item 3 Ayurveda
14.3% 14.3%

6. Silver Roots Item 4


14.3%
STRATEGY BRANDING
Al-Fiza Herbals SWOT Analysis

Strengths
Shatavari Exporters;
Top-tier Dried Shatavari Root Producer in Rampur,
Uttar Pradesh, have a spacious facility to store the Weaknesses
offerings and pack them safely and hygienically,
following all the industry-standards Lack of Certifications
Comprehensive info on the internet
Easy to contact website form and email; Benefits
S
S W Lack of price information

of Shatavari and different types of Shatavari


mentioned. - Not dependent upon one crop
O T
Opportunities Threat
Supplier entrant, Too much outward oriented
The presence among the top-notch Anacyclus Less focus on southern transportation
Pyrethrum Root Exporters and Suppliers in India;
Diversity for better networking
TAKEAWAYS

Our SWOT Analysis


Takeaways Website Infomation

Shatavari Benefits and


Ideas
Samples provision

online presence

Certifications India Mart,Paytm Options

Customer responsiveness
SALES FUNNEL FRAMEWORK

Awareness

Engage

Conversion

Sales
MARKET PROBLEMS: FINAL POINTERS,
WHY SOME FAIL AND SOME SUCCEED
A Quick Breakdown

Item 1
Item 1
Item 1 5%
15%
20%

Item 1 Item 1
Item 1
10% 5%
15% Item 1
26.1%

Item 2
Item 2
80% Item 2
85%
95%
Item 2
Item 2 73.9%
Item 2 Item 2
85% 90% 95%

Improper Authenticity Price Fluctations


Packaging
Delivery Time Licenses No Customer- Quality
issues Followup Consistency and
Control
PHILOSOPHY TO TACKLE ALL ISSUES

IRA: Where Trust meets Reliability


MARKETS TO TAP INTO FIRST

Diversify
nationally
Export- if lab
Expand in North: testings
Become a
North supplier
Suppliers India 5
with its 4
contacts 3
2
1
Break-Even Point Analysis
Break Even Point = 34,43,500/46.218
Our Target
= 74,505.60 kgs

Year 2 Estimated Production


50,000 kgs

Year 3 Estimated Production


50,000 kgs
Year 1
Profitability Net Loss - 576,500
Analysis Year 2
Net Profit After Tax - 1,453,100
Year 3
Net Profit After Tax - 1,503,100
Year 3 All losses and fixed
costs are covered Year 4
Net Profit After Tax - 1,503,100
Year 5
Net Profit After Tax - 1,503,100
SWOT ANALYSIS: IRA ENTERPRISE

S O

Strengths
W Opportunities
T
fully organic a trusted, credible organisation
online presence certifications and licenses
customer relationship employment opportunities
self-sustainable model Weaknesses scalability Threats
packaging no laboratory-backed establishing a distribution market fluctuations
involvement of all quality test network established
stakeholders cultivation of yellow shatavari competitors with
export capabilities
THANK YOU

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