Group Assignment 1

Case: GNFC neem Project: The Ecosystem of shared value

1. what are the salient features of neem project? (1 slide 5 marks)

 Neem project is right step towards self sustainability in Urea production where there was
consistent increase in import from 25% to 27% in 2008-09 to 2012-13.
 This will almost end unscrupulous diversion and reduce cost of urea to the farmer. In this
way, food production as well as burden on farmers will reduce.
 Neem seed collection will also lead to rise new employment with nearly double the income
from existing way.
 With the help of supporting groups, Neem seed collection can be made regular income to
marginal community and diversification to several related sectors by GNFC
 Environment sustainability will be promoted with more neem sapling can be planted for
income generation.
 . Backward integration for neem seed collection making it an integrated value chain.
 b. Forward integration for neem-based product in FMCG market
 c. Overall socio-economic impact for rural women and households.

2 What are the managerial challenges involved in Neem project and what way this is different from
managing GNFC operations? (2 slides,10 marks)

 GNFC is a organization which is the essential for the nation but not directly connected to its
consumers as fertiliser market is highly regulated in both price and supply.
 In supply side, they were to have product from the people while this was not the case earlier.
 Collection of neem seeds requires collectors distributed equitably in a large geographical
area.
 A organization which nearly had zero connect with people except CSR, has to convince
people for collection in a very calibrated manner.
 Neem seeds that is the raw material for neem project has variable production so prediction
and planning according to that is very difficult.

 Building the awareness for neem project and creating systems for neem seed collection
 Unpredictability of climate condition disturbing need seed collection output.
 Creating Last mile network for neem based FMCG products considering low margin involved
for dealers and distributers.
 Competition with well established FMCG brands for market space.

Scalability of project to other states requires understanding of Socio-economic dynamics and

grassroot collaborations

3, What would be your response to the three challenges mentioned in page 10 of the case (1
slide,6 marks)

 Collection figure of neem seeds: Prediction of collection figure can be made precise with
help of geographical and meteorological modelling of collection area. While seeking advice
from local people regarding the same will be extremely useful.
  Neem based Product: Collection efficiency can be increased with the usage of existing of
dairy infrastructure and local distributors can be sought to avoid monopoly of big players.
Local people can be encouraged to buy products with promoting their contribution that
these are made from your neem seeds
 Self expansion or mentoring: In areas where collection can be reliable and considerable,
expansion in those areas is extremely feasible while other fertiliser companies can be
mentored to take up this approach considering their social and environmental benefit
associated with that.
 Coordination of top management with grassroots NGOs & self-help groups, Participation
in rural festivals, mobile exhibitions.
 Storing of neem seeds or neem oil, use of monsoon prediction tech for better
management of supply side variability. Scaling geographically to reduce the impact.
 c. Using Existing rural neem collection set up for Neem based product sale in rural
market.
 d. Doing market research and targeted advertisement for the organic FMCG product
with high content of neem oil in comparison to existing brands, also highlighting
health benefits and socio-economic implication of neem projects to capture
market share and increasing profitability.
 e. Proper research of socio-economic dynamics and assurance of grassroot
organization only neem project should be scaled as conducive environment
available in Gujrat may not be available elsewhere otherwise go for mentorship.


4.From strategic perspective should GNFC get in to neem project? Is there an alternate to promote
neem urea? (1 slide,4 points)

 Neem project will reduce intermediaries to reduce fertiliser shortage that will in turn reduce
exchequer burden on government from import. This will reduce subsidy burden as well as
increase cash flow the company.
 This project can make GNFC to diversify in FMCG products and increase market presence.
 Being a joint sector with Gov of Gujrat as one partner, Given the positive socio-economic
impact of neem project for economic empowerment of rural women & low-income
household as well as reduction in domestic violence, Neem project is a Win-Win for
all the stakeholders.
 Even financially the neem project does make sense due to available rural set up for
backward integration and accessing the end user farmer simultaneously with close
coordination and integrating the supply demand value chain.
